Nepal Rastra Bank has amended the guidelines on interest rates for A, B and C class finance banks. In determining and publishing the interest rate to be paid on deposit by licensed banks and financial institutions as per the guideline amended by NRB, average and minimum interest rate (excluding account specified in sub-paragraph 5 and sub-paragraph 7) published by all concerned institutions last month.
Maximum of 10% will be able to determine the interest rate by changing the average. If the difference between the maximum and minimum interest rates to be maintained while determining the interest rate exceeds the limit of the provision of sub-point 5, then one of the maximum or minimum rates should be maintained and other rates should be adjusted.
For example, if the average of the maximum interest rates published by all Class A banks last month is 8.5 percent, then the Class A banks will be able to fix the maximum interest rate only up to 9.35 percent, which will be increased by 10 percent.
Similarly, in case of term deposit to be collected on the basis of bidding, the deposit should be collected in such a way that it does not increase in the published interest rate. However, if the existing deposit has to be renewed by bidding, the deposit can be collected by adding 0.1 percentage point to the published interest rate.