Kathmandu. Development Bank has fixed the new interest rate to be implemented from next July. Development Banks Association, the umbrella organization of development banks, has decided to reduce the monthly interest received by the customers by 0.50 percent in June.

Currently, national level development banks are giving 10.6 percent interest and regional level banks are giving 10.85 percent interest. From July 1, the National Development Bank has reduced interest by 0.50 percentage points.

Bikas Bank Association called a meeting of member bankers on Friday to discuss the deposit interest rate effective from 1st July. The meeting has decided to continue the old tradition of setting the interest rate by consensus. The association has fixed two different interest rates for national and regional levels.

Although the commercial banks stopped deciding the interest rate by themselves from July, Bikas Bank is still continuing the cartelization. The umbrella organization of commercial banks has abolished the long-standing cartelization and is leaving the responsibility of setting the interest rate of deposits to the respective banks.