Nepal, Sept. 17 -- The government has capped interest rates charged by cooperatives on their loan at 13 percent effective from Thursday.

The Office of the Cooperatives Registrar (OCR) under the Ministry of the Land Management, Cooperatives, Federal Affairs and General Administration has fixed the reference interest rate for cooperatives at a maximum of 13 percent. Previously, the rate was fixed at 16 percent.

According to the OCR, institutions may set interest rates lower than 13 percent after analyzing their operational status, requirements, and justification. Additionally, a provision has been made ensuring that the spread-the difference between the interest rate paid on savings and the interest rate charged on loans-must not exceed...