Interest for institutional fixed deposit should be less than individual by one percent

KATHMANDU: The Nepal Rastra Bank (NRB) has made public the details of the mid-year review of the monetary policy of the current financial year.

Based on the review, the central Bank has made new arrangements for the implementation of the interest rate of fixed deposits and the interest rate ‘corridor’.

“To make the interest rate corridor effective, the fixed deposit facility will be implemented from mid-February “, it is said in the review of the monetary policy,

“The interest rate of institutional fixed deposits will be arranged that it can be fixed by making it one percentage lower than the interest rate provided for individual fixed deposits.”

Likewise, loans up to Rs. 20 million provided to agricultural, small, cottage and medium-scale enterprises will be allowed to be counted in the ‘Regulatory Retail Portfolio’.

In view of the internal and external situation and scenario of the economy and the policy arrangements made during the first quarterly review, the rates under the interest rate corridor have been left unchanged.

Provisions related to mandatory cash reserve ratio and statutory liquidity ratio have been continued.

Meanwhile, the Ministry of Finance has also released the half-yearly review of the current financial year’s budget today.

The Ministry has revised and reduced the income and expenditure estimates for the fiscal year.