Development Banks give ultimatum to the commercial banks; To raise interest rates if commercial banks fail to decrease rates till Sunday

After the start of a competition to raise the interest rate among commercial banks, development banks have responded on the current situation. Development Bankers Association has provided ultimatum till Sunday for the commercial banks to decrease the interest rate or else the development banks will also start to raise it.

Rastra Bank had called for an emergency meeting including the representatives of commercial banks after Himalayan Bank and Nabil Bank increased interest rate on FD to 13%.

Following the same, the representatives of development banks had also visited the Rastra Bank to have a say about it. Nepal Rastra Bank consoled the representatives stating that some measures will be applied and the problem will be solved.

Nepal Rastra Bank has also suggested the Bankers Association to move forward with a gentleman’s agreement. However, it is known that such gentleman’s agreement has not been effective .