Economic activities for March 10

Nepal Bankers Association has boycotted all inter-bank financial transactions with NIC Asia bank. The Association decided to suspend all inter-bank transaction with NIC Asia bank saying that the latter had increased its interest rates defying the interest rate policies fixed collectively by various banking organisations. In a recent meeting which included NIC Asia bank, the Association came to the agreement of setting the upper limit of 8% interest rate on Savings account and 11% on Fixed account. The Association made the decision of suspending inter-bank transactions after NIC Asia provided with 10% interest on Savings and 12% on Fixed account defying the earlier agreement. In response, NIC Asia Bank said that the Banker Association had no right to fix the interest rates.