The National Bureau of Standards announces a new interest rate directive.

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The Nepal Rastra Bank (NRB) today issued a new to banks and financial institutions (BFIs) by changing the Integrated Directive, 2020, in to the liquidity shortage that has been experienced by the financial institutions (FI).

According to the central bank, the instruction issued on 20 has been further updated and made more systematic in terms of calculation.

The on bank deposits could only be changed by a maximum of 10% in the previous month, according to the rules in at the time of the change in interest rate.

According to a recent update, banks and financial institutions (BFIs) can only adjust the average by a maximum of 10% (except for call deposits) by calculating the average and minimum interest rates that were announced in the preceding month. If the spread rate exceeded the cap, the other rates should be adjusted by establishing a basis that is either equal to or greater than the maximum and minimum interest rates.

In a similar vein, the NRB has the clause that allowed banks to raise interest rates on deposits by up to 0.5 percentage point, with the exception of call deposits and institutional fixed deposits.

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