March 14: Banks and financial institutions (BFIs) have decided to implement the decision to reduce the interest rate beginning from Wednesday.    
Nepal Bankers' Association, an umbrella organisation of commercial banks, agreed to reduce the premium rate on loans by one percent and the interest on savings by 0.4 percent from March 15.

Issuing a notice on Tuesday, the bankers’ association said that the decision will be implemented from Wednesday.

According to the association’s chair Sunil KC, now they are focused on capping the interest rates. As per the revised provisions, banks will charge premium rate on loans up to five percent instead of six percent and will provide 6 to 8 percent interest on normal savings. Prior to this, the interests on normal savings were 6.42 to 8.42 percent. The interest rate on fixed deposits is unchanged and it remains at 11 percent.    
Similarly, towards institutional savings, 9 percent interest rate has been fixed and towards the remittance fixed deposit, it is 12 percent. -- RSS