Nineteen out of 20 commercial banks have kept their fixed deposit interest rates unchanged for the month of Falgun (mid-February to mid-March). Only Global IME Bank has increased its maximum interest rate by 0.25 percentage points, raising it from 5.75 percent in Magh (mid-January to mid-February) to 6 percent. Most banks had also maintained the same interest rates in Poush (mid-December to mid-January).

Former banker Parshuram Kunwar stated that banks have opted to keep deposit interest rates unchanged despite sufficient liquidity in the financial system. He expects this trend to continue for some time, as banks currently have the capacity to lend more than Rs 650 billion. While lending rates are also decreasing, credit expansion has stalled, leading to excess liquidity in banks. Bankers attribute the low demand for loans to the ongoing economic slowdown.

During past liquidity crises, banks had agreed to offer a maximum interest rate of 12 percent on individual term deposits. However, the Nepal Bankers’ Association ended this informal agreement in mid-July of Fiscal Year 2023/24, allowing banks to determine interest rates independently. Since then, commercial banks have been reducing their interest rates.

As per central bank regulations, commercial banks must publish their interest rates monthly, with the applicable rates for each month announced on the last day of the previous month. The central bank also mandates that banks can adjust interest rates by a maximum of 10 percent from the previous month's rate.

NIC Asia and NMB Bank have maintained a maximum interest rate of 6.6 percent on individual fixed deposits for Falgun. NIC Asia offers this rate for deposits with a tenure of more than five years. Among the 20 commercial banks, Nepal SBI Bank has set the lowest maximum interest rate for personal fixed deposits at 5.50 percent, applicable only for deposits exceeding three years.

For institutional fixed deposits, banks have set maximum interest rates that are 1 percentage point lower than those for personal fixed deposits.