NIC Asia making the headlines again; Bankers Association suspends Inter Banking Transaction

NIC Asia has been creating headlines in the recent time, but all for the wrong reasons. Banker’s Association has made a decision to suspend all kinds of Inter Banking transactions with NIC Asia Bank. Recently, an agreement was made between all the commercial banks regarding the interest rates in both savings and fixed deposits. The agreement was made fixing the maximum interest rate at 8% and 11% respectively for savings and fixed deposit respectively. After that agreement, the NIC Asia had also decreased its interest rate of 10% on savings to 8%. But the bank published a notice on Thursday increasing the interest rate to 10% and 12% on saving and FD respectively. As a result, the CEO of the bank Mr Laxman Risal has resigned from his post and the Bankers Association has also taken the decision of suspension of Inter Banking transaction. The association has called a meeting of the 27 banks on Sunday. The meeting will be mainly focused on the determination of interest rate and the module to be followed for future.