Kathmandu. The central bank has amended the unified directive issued to the ‘A’, ‘B’, and ‘C’ category banks and financial institutions (BFIs) under Section 79 of the Nepal Rastra Bank Act,2002.
The NRB has revised Sub-section 3 of Section 1 of Directive15, decreasing the maximum interest rate offered on institutional term deposits, including bidding to be lower than one percent than the maximum interest offered on term deposits general public to be applicable from March 14.
Such a rate was fixed at two percent earlier by the central bank. The central bank has also removed the cap of 0.5 percentage points to be maintained by BFIs while collecting fixed deposits, including domestic and foreign currency based on bidding.
Also, the NRB has amended Provisions in 1.1 and 1.2 of Capital Adequacy Framework 2015, and 3.3 of Capital Adequacy Framework 2007, increasing the low-value individual criteria threshold of total aggregated exposure to one counterpart to Rs 20 million. The criteria had been maintained at Rs 10 million before the latest update published by the NRB.
Source. The Himalayan Times.
