Kathmandu, February 22
The interest rate of institutional term deposits will increase from mid-March (Chaitra, last month of Nepali calendar).
Nepal Rastra Bank issued instructions on Thursday for the implementation of the second quarter review of the monetary policy of the current fiscal year.
According to that directive, banks will have to maintain only one per cent interest on individual and institutional term deposits from mid-March. At present, the interest difference between individual and institutional term deposits is two percentage points.
At present, the bank has given a maximum of eight per cent interest on individual term deposits but has given six per cent on institutional term deposits.
But from March, the bank that gave the maximum interest rate of eight per cent for individual terms can give up to seven per cent for institutional terms. Due to this arrangement, the interest rate of institutional deposits will increase from mid-March.
