The central bank has allowed banks to provide at least one percent point less interest on maximum interest rate provided to institutional FD compared to the maximum interest rate provided to individual FD.
As per NRB, the provision will be implemented in upcoming month Chaitra.
Currently, banks are allowed to provide 2 percent points less interest on institutional FD compared to individual FD.
Moreover, NRB has scrapped a provision under which FD (domestic or foreign currency) that is collected on the basis of bidding should be provided 0.5 percent points above the published interest rates.
Similarly, NRB has allowed loans up to Rs 20 million to agriculture, small, cottage and middle industries to be calculated in the regulatory retail portfolio. Moreover, the banks can maintain 75 percent weighted risk on such regulatory retail portfolio loans. This will ease the capital fund of the banks.
