December 21, 2018 | Investopaper
The commercial banks of Nepal again entered into gentle agreement to fix the interest rate ceiling on deposits. In the leadership of Nepal Bankers Association, the banks have set limit on interest rate. The interest rate ceiling is fixed at 6.5% for savings deposit and 9.25% for individual fixed deposit. The interest rate for institutional fixed deposit is set at maximum 8.5%.
Lately, the banks were aggressively increasing the interest rate up to 13.5%. Nepal Rastra Bank was furious at the reckless actions of the banks. The central bank called the executives of the bank and directed them not to increase the interest rate.