Kathmandu. Nepal Rastra Bank (NRB) has reduced the deposit collection rate, which is the lower limit of the bank's interest rate corridor. National Bank has reduced this rate by one percentage point to 6.5. The Central Bank has implemented such a system while implementing the monetary policy for the current financial year 2080/81.

The Bank and Financial Institutions Regulation Department of the National Bank has made this arrangement by revising/amending the integrated guidelines 2079 issued to banks and financial institutions of categories A, B and C on Friday. Rastra Bank decided to reduce deposit collection rate and policy rate through monetary policy.

The repo rate has decreased by 0.50 percentage points along with the reduction of the deposit collection rate of the commercial banks. Previously, the permanent liquidity facility rate, which was the upper limit of the interest rate corridor in commercial banks, was 7.5 percent. On the other hand, the deposit collection rate as the lower limit was 5.5 percent and the repo rate as the policy rate was 7 percent.

The National Bank has kept the permanent liquidity facility rate unchanged at 7.5 percent. However, the deposit collection rate, which is the lower limit, has been increased to 4.5 percent. Likewise, the repo rate, which is the policy rate, has been maintained at 6.5 percent.