Kathmandu. Commercial banks are going to determine the interest rate on their own basis from the month of July. The meeting of Nepal Bankers Association (NBA) held this morning has decided to open the way to determine the interest rate in its own way, breaking the consensus that has been made in the past. A new strategy has been taken after the deposits piled up in the banks and the loan investment situation slowed down.

Banks recently reduced interest rates to single digits. From April until now, the interest rate of institutional term deposits was 7.99 percent, personal term deposits were 9.99 percent and the interest rate of savings was 5.4 percent to 7.4 percent. With the decision of the NBA, now the interest rate of the loan will also decrease.