Kathmandu, Nepal Rastra Bank has requested to change the interest rate of cooperatives. NRB has suggested to reduce the interest rate of cooperatives saying that the interest rate of loan has decreased in the market.

The Department of Cooperatives has also formed a task force to determine the new reference interest rate. In a meeting with the new registrar of the department Lila Prasad Sharma and stakeholders on Sunday, the representatives of NRB suggested to adjust the interest rate of the cooperatives.

The Department of Cooperatives had fixed the maximum interest rate of loan at 16 percent for the first time with effect from 19 July 2076.

The department had formed the 'Reference Interest Rate Determination and Recommendation Committee' and adjusted the interest rate of loans given by cooperatives for the second time from kartik 2077.

Since then, institutions have been able to charge a maximum interest rate of 14.75 percent on loans by keeping a 6 percent spread on interest on savings.

During the meeting with the representative of NRB, Kedar Pokhrel's team informed that the interest rate of banks and financial institutions has been reduced and suggested to reduce the interest rate of cooperatives as well.