Fixed Deposit Interest Rate in Nepal

Nov Tue 2023 03:01:07

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Most of the commercial banks have reduced the deposit interest rates for the month of November. Banks have reduced the interest rate of deposits as the banking system has accumulated enough investable funds (liquidity) and the demand for loans has not increased.

For November, 13 out of 20 commercial banks have reduced the deposit interest rate, while 6 banks have kept the same interest rate. In November, Prime Commercial, Kumari, Lakshmi Sunrise, Siddharth, Nepal and Citizens stated that the interest rate remained the same as in November. Only Machhapuchhre Bank has increased the deposit interest rate in November. All other banks have reduced it.

The interest rate of inter-bank transactions has fallen below 2 percentage points. With the accumulation of investable funds in the banking system, the interest rate of inter-bank transactions has also decreased. Currently, this interest rate has fallen to the line of 1.94 percentage points. Currently, with the high growth of deposits in banks, this interest rate has started to decrease continuously. Currently, more than 5 billion investable funds are accumulated in the banking system.

Interest rate of the commercial banks have changed from the previous month. As per the meeting of Nepal Bankers Association (NBA), individual banks can determine their interest rate. The updated interest rates of the bank for the month of Mangsir 2080 are as follows. These rates will be effective from Mangsir 1, 2080.