Nabil Bank withdraws advance interest payment scheme following pressure from the Banker's Association; Calls for a meeting on Monday
The issue of the interest rate of commercial banks has shown no sign of fading out. Recently, Nabil Bank and NIC Asia had introduced a scheme announcing advance payment of interest at 11% for the fixed deposits.
The introduced scheme was proved to be a loophole in the agreement done with Banker’s Association. Before Nabil Bank, Bank of Kathmandu and some banks had introduced the scheme of advance payment. Apart from that, NIC Asia had also announced similar kind of scheme just after the notice of Nabil Bank.
A meeting has been called to withdraw the schemes on Monday. All the banks will be asked to remove the scheme of advance interest payment as the so paid interest will exceed the agreed interest rate of 12%. The meeting held will mainly be focused on the measures to overcome the loopholes and to move forward in harmony.
The introduced scheme was proved to be a loophole in the agreement done with Banker’s Association. Before Nabil Bank, Bank of Kathmandu and some banks had introduced the scheme of advance payment. Apart from that, NIC Asia had also announced similar kind of scheme just after the notice of Nabil Bank.
A meeting has been called to withdraw the schemes on Monday. All the banks will be asked to remove the scheme of advance interest payment as the so paid interest will exceed the agreed interest rate of 12%. The meeting held will mainly be focused on the measures to overcome the loopholes and to move forward in harmony.
