Kathmandu. Commercial banks have decided to reduce interest rates in January. The meeting of Nepal Bankers Association, an organization of commercial bank CEOs, decided to reduce the interest rate in January. Banks have decided to reduce the interest rate by 1.13 percent for the month of Magh 2079.

The Bankers' Association has informed that the decision to reduce the interest rate has been made due to the ease of liquidity and the decrease in credit flow due to the high interest rate.

At present, commercial banks have fixed 12.133 percent interest on individual term deposits and 9.133 percent on institutional deposits. Interest has been fixed up to 15.333 percent on remittance term accounts.

Now the banks will reduce the interest rate and implement it from January 1st. In January, banks have fixed 11 percent interest on individual term deposits and 9 percent interest on institutional deposits. 12% interest rate will be charged on remittance term account.