Banks will not increase interest on deposits in November

Credit crunch looms as commercial banks grapple with liquidity mismatch

KATHMANDU: In November, commercial banks won’t raise the interest rate on deposits (ie, mid Nov-mid Oct). The Nepal Bankers Association voted not to raise the deposit interest rate in November at its meeting on Tuesday morning.

“It has been decided that the banks will publish interest rates equal to November for November as well,” said Sunil KC, vice president of Nepal Bankers’ Association. have come down At present, they have suspended the agitation for the sake of elections. At the same time, banks have decided not to increase interest on deposits.

After 6 months last October, banks increased the deposit interest rate by an average of 10 percent. The banks that published October interest rates in November will continue the same sequence in November. According to which, banks will now publish a maximum interest rate of 12.133 percent on individual term deposits for November as well.

It is equal to the current (November) month. Similarly, the maximum interest rate of 10.133 percent of one-year institutional term deposits will be maintained in November. A bank that gives 12.133 percent interest on personal term will have to give at least 7.133 percent interest on savings.

From last March to August, commercial banks kept the interest rate of deposits stable. According to which, the maximum interest rate of 11.03 percent was fixed on one-year personal term deposits.

Banks and financial institutions should publish the interest rate for the coming month before the end of this month according to the instructions of the National Bank. The published interest rate cannot be revised for one month.

Similarly, Nepal Rastra Bank has prepared to take action against the commercial banks that give excessive interest on deposits against the rules. Rastra Bank, which has been instructing the banks that have charged more interest from customers through premiums to return the amount, has also started preparing to take action against banks that give more interest on deposits.

On November 14, the National Bank has asked the banks to cut the letter and send the complete details of the interest provided to the depositors in the last financial year and the first quarter of the current financial year within 15 days.

Fiscal Nepal |
Tuesday November 15, 2022, 01:18:59 PM |

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