KATHMANDU, March 2 -- Nepal Rastra Bank (NRB) has warned the banks and financial institutions (BFIs) to take action if they are found not maintaining the spread rate as provisioned by the monetary policy.

According to the NRB officials, the central bank on Sunday wrote letters to the management of the BFIs to face actions if they breach the set guideline. The monetary policy has capped the spread rate for commercial banks at 4.4 percent while it is fixed at 5 percent for the development banks.

The spread rate is the difference between the interest rates on deposits and loans. Banks have to consider the weighted average of the interest rates on deposits and loans while calculating the spread rate.

Banks are often blamed for maintaining ...