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NRB Directs BFIs not to Lure Depositors with Gifts

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NRB Directs BFIs not to Lure Depositors with Gifts
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May 12: Nepal Rastra Bank (NRB) has prohibited banks and financial institutions (BFIs) from luring depositors by offering gifts. A circular issued by the central bank on Thursday says that BFIs cannot announce schemes offering gold and silver coins, birthday cakes, among other similar incentives, to attract deposits.

NRB’s acting executive director Bam Kumar Mishra said that the central bank announced such measures due to the unhealthy competition in the market to lure depositors.

“Such offers increase the expenditure of the banks and will ultimately result in the rise of interest rates,” said Mishra.

Earlier, the central bank had ordered the BFIs not to announce any scheme involving a lucky draw to attract depositors.

 

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