Kathmandu. Nepal Rastra Bank and financial institutions have been instructed to reduce the interest rate which they have voluntarily increased. On Tuesday, NRB directed to change the interest rate within 24 hours.

In the directive, the licensed A, B and C class banks and financial institutions have been asked to amend the interest rate already published for the month of November, 2078 BS and make it public through their website by November 19, 2078 BS.

NRB has issued a directive to reduce interest rates after banks and financial institutions started withdrawing deposits from the market due to lack of liquidity in the market. Banks have increased the interest rate on term deposits to 10 percent.