Bankers' Association's Decision to Freeze Deposit Rates in Ashad

The Nepal Bankers' Association (NBA) has made the decision to maintain the deposit interest rates unchanged, even during the month of Ashad. The association's working committee meeting, held on Tuesday morning, concluded to continue the current interest rates for the past two months.

Currently, the fixed deposit interest rate for individual stands at 9.99 percent, which is a decrease from the previous rate of up to 12.113 percent.

The association believes that the impact of the deposit interest rate is gradually being reflected in the base rate and subsequently leading to a decrease in loan rates. They anticipate that by the end of Ashad, the spread rate will be reduced to 4 percent, resulting in a decrease in loan interest rates as well.

The association has been setting interest rates through mutual agreement, despite opposition claiming that it contradicts the principles of an open market. However, the union argues that abandoning cartelisation would lead to an increase in interest rates. They assert that the bankers' union, while advocating for an open market, is itself engaged in cartelisation.

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