Kathmandu. Nepal Rastra Bank (NRB), the central bank of Nepal, has abolished the interest rate on institutional fixed deposits by 1 percent.

The central bank has released the first quarterly review of the monetary policy for the current fiscal year. The review also repealed the existing provision requiring the banks and financial institutions to reduce the interest rate of institutional fixed deposits by at least 1 percentage point compared to the interest rate of individual fixed deposits.

With this provision, banks and financial institutions have been relaxed to determine the interest rate of institutional fixed deposits. This will encourage institutional fixed deposits.