KATHMANDU: The Federation of Nepalese Chambers of Commerce and Industry (FNCCI) has objected to the gentle agreement reached among commercial banks to increase the interest rate on deposits.

The Nepal Bankers Association, an association of chief executive officers of commercial banks, hadon  Friday agreed to raise the interest rate on deposits to 11.03 percent.

The FNCCI has issued a statement objecting to the news of the agreement among banks. It urged to reconsider the agreement.

The statement said that the private sector is worried that the industries and businesses are going through a crisis, and in such situation if the interest rates on loans taken by the industrialists increase again, the sector will strain further and industrialists will end up on the streets.

The FNCCI concluded that the decision to increase interest rates in the country will further weaken the industries and businesses as the industry and business sectors will be subject to all-round pressure due to hiked interest rates.