NBA meets again after the violation of previous agreement; rates on individual FD and institutional FD of more than 10 year left under the discretion of bank

A few days back, when three banks raised their rates on saving account to 7% they had indirectly violated the Gentlemen's agreement regarding the rates on call account. Regarding the same Nepal Bankers' Association had organized a meeting and at the end of it, the decision stated that banks now has their autonomy in deciding their rates on individual accounts.

Prior to this the rates on individual fixed deposit was 10.5%, which now has been opened to the discretion of bank itself as per the meeting held on tuesday. Similarly, for insitutional fixed deposits of over 10 years, the rates can be negotiated and fixed accordingly. However, for institutional fixed deposits of less that 10 years, the rates can't go above 11%. Likewise, the rates for saving account can go upto 7% with monthly interest payable.