Fiscal Nepal
First Business News Portal in English from Nepal
KATHMANDU: Though the Nepal Rastra Bank (NRB) had capped the total call deposit amount to total deposit liability to 10 percent for commercial bank, call deposits of five commercial banks is seen still higher than the limit.
Earlier , the central bank had capped the total call deposit amount to total deposit liability to 10 percent for commercial bank and 15 percent for development banks and finance companies and directed them to implement it by mid-July 2020.
However, statistics of Nepal Bankers Association, the umbrella organization representing 27 commercial banks of the country, shows that five commercial banks have still collected call deposits above the NRB set ceiling.
Prime Commercial Bank, Prabhu Bank, Nabil Bank, Nepal SBI Bank and Himalayan Bank have collected call deposits above 10%, breaching the central bank’s directive.
NRB officials said that these banks will soon be re-directed to implement the previous direction on call deposit ceiling. “As banks have been citing their failure to maintain the call deposit within the ceiling due to COVID-19 and other unfavorable circumstances, we have not decided any immediate action against these banks. However, we expect them to soon implement NRB’s direction and maintain the call deposit within the prescribed ceiling,” said an NRB official.
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