Kathmandu. Banks and financial institutions have increased interest rates. The interest rates of banks and financial institutions, which have been stable for the past 6 months, have increased in the month of October.

Now in the month of October, the banks are going to increase the interest rate by 10 percent and provide 12.13 percent interest rate for personal term deposits and 9.13 percent interest rate for institutional deposits. At present, banks were giving fixed deposit interest rate of 11.13 percent to individuals and 9.13 percent to institutions.

Similarly, development banks have also increased their interest rates. The development banks have increased the interest rate and will provide up to 13 percent interest on personal term deposits and up to 11 percent interest on institutional term deposits. Similarly, the finance companies will also provide interest rates up to 13.47 percent on personal term deposits and 11.47 percent on institutional term deposits.

On Friday, i.e. the last day of August, banks and financial institutions have published notices and informed that interest rates have been increased. Earlier, the meeting of Nepal Bankers Association held on Thursday had decided to leave the interest rate independent for six months. According to the same decision, banks and financial institutions have increased the interest rates within the limits set by the National Bank. The interest rate increased by banks and financial institutions will be effective from October 1st. One percent higher interest rate has been set for remittance account.