Banks have raised interest rates on deposits and loans for the next month. The rates have also been increased. Banks are vying to raise interest rates as there is a lack of liquidity in the market. Banks have set double-digit rates on deposits.
The rate of commercial banks has increased by 1-2 percent compared to last month. Banks have raised the rates to attract depositors due to a lack of liquidity.
According to the NRB, the liquidity in the banking system was around Rs 37.37 billion in the first week of July, but it has decreased to Rs 20 billion by September 12. Banks are competing to raise deposits by raising rates as there is a shortage of money to invest in the market.
