NBA Decides To Lower Interest Rates To Single Digits For the Month of Baishakh

The interest rate on fixed deposits would be lower starting in the upcoming month of Baishakh, 2080 according to the Nepal Bankers Association (NBA). In the Bankers' Association meeting held on Wednesday, the majority of banks expressed their support for lowering the interest rate, and a decision was made to also lower the term interest rate.

The Chief Executive Officers of commercial banks' umbrella group, NBA, have decided to lower interest rates. In light of this, it has been agreed to lower the interest rate on personal deposits by 10%. The interest rate on fixed deposits has now decreased to single digits as a result of this move.

According to NBA's decision, the interest rate of one-year term deposits has decreased from 11 percent to 9.9 percent.

Along with this, the interest rate of institutional fixed deposits has remained at 7.99 percent.

Similarly, the interest rate on savings has remained at 5.4 to 7.4 percent.

Commercial banks have reduced the deposit interest rates with effect from Baishakh 1, 2080. Now, the impact of interest on deposits that has fallen will be reflected in the base rate from the month of Baishakh.

Since the month of Magh, banks are maintaining interest rates of 11% for individuals and 9% interest rates for the institutions. While leaving the interest rate on fixed deposits unchanged for the month of Chaitra, the Nepal Bankers Association had lowered the interest rate on savings. Prior to Magh month, commercial bank's fixed deposit interest rates was 12.133 percent for individuals and 10.133 percent for institutions.