Pardafas Reporter
The Nepal bankers' association has asked NIC Asia Bank for clarification.
As the NIC Asia Bank was giving more interest than specified the bankers association has asked for clarification.
On Thursday, the association sent a letter to NIC Asia Bank and objected to NIC Asia Bank's action of giving more interest than the prescribed rate against the rules.
Currently, banks give 11.03 percent interest rate to individuals on one-year term deposits and 9.03 percent to institutions. Similarly, under the remittance account, there is a provision to give a 12.03 percent interest rate. The bankers association has decided the interest rate by mutual agreement.
The complaint was lodged with the association with proof that NIC Asia Bank has raised some individuals' deposits at 13.03 percent. Association has warned that member banks will not even do interbank transactions with NIC Asia Bank if the bank collects deposits against the rules.
Roshan Neupane, CEO of NIC Asia Bank, is also a member of the Executive Committee of the Bankers Association. Other banks are angry with NIC Asia as it breaks the agreement by itself though by being on the Executive Committee.
Earlier also, there was a dispute between the Bakers Association and NIC Asia in March 2018. At that time the full meeting of the association had decided not to do any business with NIC Asia Bank
