Nepal finance glossary
Plain-English definitions of the banking, deposit, loan and remittance terms you meet on Nepali bank rate sheets and in Byajdar's comparisons, with the Nepali term alongside. Each entry links to the Byajdar tool or data page where the term applies.
Base rate आधार दर
The base rate is the minimum lending rate a Nepali bank calculates from its own cost of funds and publishes regularly under Nepal Rastra Bank rules. Loan rates are set as the base rate plus a premium, so when a bank's base rate falls, rates on its existing variable-rate loans generally fall too.
See: bank base rates
Buying and selling rate किन्ने र बेच्ने दर
The buying rate applies when a bank buys foreign currency from you and pays rupees; the selling rate applies when it sells you foreign currency for rupees. The selling rate is always higher, and the gap is the bank's margin.
Cash reserve ratio (CRR) अनिवार्य नगद अनुपात
The cash reserve ratio is the share of a bank's deposits that it must keep as reserves with Nepal Rastra Bank. NRB adjusts it to influence how much money banks can lend.
Class A, B, C and D institutions क, ख, ग र घ वर्ग
Nepal Rastra Bank licenses banks and financial institutions in four classes: A (commercial banks), B (development banks), C (finance companies) and D (microfinance institutions). Higher-class institutions can offer a wider range of services; deposit rates are often higher at Class B and C institutions.
Compound interest चक्रीय ब्याज
Compound interest is interest earned on both your original deposit and on interest already added to it. The more often interest is compounded, the more you earn at the same headline rate. Formula: amount = principal × (1 + rate ÷ n)n × years, where n is the number of compounding periods per year.
See: FD calculator
Deposit guarantee (DCGF) निक्षेप सुरक्षण
Deposits at NRB-licensed banks and financial institutions are guaranteed up to NPR 5 lakh per depositor per institution by the Deposit and Credit Guarantee Fund (DCGF, formerly the Deposit and Credit Guarantee Corporation, DCGC). Splitting larger savings across institutions keeps more of it inside the guarantee.
Effective yield प्रभावकारी प्रतिफल
Effective yield is the actual percentage return over a year once compounding is included. It is higher than the headline rate whenever interest compounds more than once a year, and is the fairest way to compare deposits that compound differently.
EMI (equated monthly instalment) मासिक किस्ता
An EMI is the fixed monthly payment on a loan, covering both interest and part of the principal. Formula: EMI = P × r × (1 + r)n ÷ ((1 + r)n − 1), with P the loan amount, r the monthly interest rate and n the number of months.
See: EMI calculator
Exchange rate विनिमय दर
An exchange rate is the price of one currency in another, for example how many Nepalese rupees one US dollar buys. The rate you get from a bank or remittance provider includes its own margin.
See: USD to NPR rate
Fixed deposit (FD) मुद्दती निक्षेप
A fixed deposit is money placed with a bank or financial institution for a fixed period, such as 3 months, 1 year or 3 years, at an interest rate agreed when you open it. In Nepal, fixed deposits are offered by commercial banks, development banks and finance companies, and usually pay more than a savings account because you agree not to withdraw the money before maturity.
Hundi हुन्डी
Hundi is informal, unlicensed money transfer outside the banking system. It is illegal in Nepal, offers no protection if money is lost, and does not qualify the recipient for remittance-linked bank products.
Institutional fixed deposit संस्थागत मुद्दती निक्षेप
An institutional fixed deposit is a fixed deposit held by a company or organisation rather than an individual. Banks publish separate, often lower, rates for institutional deposits.
Interest rate (per annum) ब्याजदर
The interest rate is the percentage a bank pays on deposits or charges on loans, quoted per year ("per annum" or "p.a."). A 5% p.a. rate on NPR 1,00,000 earns about NPR 5,000 in a year before compounding and tax.
Interest rate spread ब्याजदर अन्तर
The interest rate spread is the difference between the average rate a bank charges on loans and the average rate it pays on deposits. Nepal Rastra Bank sets a ceiling on the average spread that banks may maintain.
KYC (know your customer) ग्राहक पहिचान
KYC is the identity-verification process banks and remittance providers must complete before opening an account or sending money. In Nepal it usually needs a citizenship certificate or passport, a photo and proof of address.
Maturity and maturity amount परिपक्वता रकम
Maturity is the date a fixed deposit ends. The maturity amount is your deposit plus all the interest it has earned, before any tax deducted at source. At maturity you can withdraw the money or renew the deposit, often at whatever rate the bank offers that day.
See: maturity calculator
Nepal Rastra Bank (NRB) नेपाल राष्ट्र बैंक
Nepal Rastra Bank is Nepal's central bank. It conducts monetary policy, licenses and supervises banks and financial institutions, manages foreign exchange reserves and publishes the official daily reference exchange rates.
See: NRB exchange rates
NRN (non-resident Nepali) गैरआवासीय नेपाली
A non-resident Nepali is a Nepali citizen living abroad, or a person of Nepali origin with foreign citizenship, as defined in Nepal's Non-Resident Nepali Act. Nepali banks offer NRN accounts and fixed deposits, some in foreign currency.
See: NRN fixed deposits
Policy rate नीतिगत दर
The policy rate is the interest rate Nepal Rastra Bank uses to signal its monetary policy stance. Changes to it influence interbank rates and, over time, the deposit and lending rates banks offer.
Premature withdrawal समयअघि निकासी
Premature withdrawal means closing a fixed deposit before its maturity date. Banks usually allow it but apply a penalty set in their own terms, commonly a reduced interest rate on the deposit. Check the terms before you deposit if you might need the money early.
Quarterly compounding त्रैमासिक चक्रीय ब्याज
Quarterly compounding means interest is calculated and added to the balance four times a year. Nepali banks generally compound fixed deposit interest quarterly, so a 1-year FD at 5.50% p.a. grows slightly more than 5.50% over the year.
See: FD calculator
Recurring deposit आवर्ती निक्षेप
A recurring deposit is a savings scheme where you deposit a fixed amount every month for a set period and receive the total with interest at the end. It suits people saving towards a goal from monthly income.
Reducing balance method घट्दो मौज्दात विधि
Under the reducing balance method, interest is charged only on the loan amount still outstanding. As each EMI repays some principal, the interest portion of later payments shrinks. Almost all Nepali bank loans are calculated this way.
See: EMI calculator
Reference rate सन्दर्भ दर
Nepal Rastra Bank's reference rates are the official daily exchange rates it publishes. They are a benchmark, not the rate a customer receives; banks, money changers and remittance companies set their own rates around them.
See: today's NRB rates
Remittance रेमिट्यान्स
Remittance is money sent home by people working or living abroad. For Nepal it is one of the largest sources of foreign income. It arrives through banks, licensed remittance companies and apps, and is paid out as a bank deposit, wallet credit or cash pickup.
Remittance savings or fixed deposit रेमिट्यान्स बचत
Several Nepali banks offer savings accounts and fixed deposits for money received as remittance, sometimes at a higher interest rate than their standard products. Terms vary by bank.
See: fixed deposit rates
Savings account बचत खाता
A savings account is a deposit account you can withdraw from at any time, paying interest on the balance. Rates are lower than fixed deposits in exchange for that flexibility. Nepali banks offer variants such as salary, premium, shareholder, senior-citizen and remittance savings accounts, each with its own rate.
Senior citizen deposit ज्येष्ठ नागरिक निक्षेप
Some Nepali banks offer savings accounts and fixed deposits for senior citizens with a higher interest rate than their standard products. Age thresholds and rates vary by bank.
Statutory liquidity ratio (SLR) वैधानिक तरलता अनुपात
The statutory liquidity ratio is the share of deposits a bank must hold in liquid assets such as cash and government securities, set by Nepal Rastra Bank to keep banks able to meet withdrawals.
SWIFT transfer स्विफ्ट
A SWIFT transfer is an international bank wire sent over the SWIFT messaging network. It is reliable but often more expensive than remittance apps because of sending, intermediary and receiving fees plus the exchange margin.
Tax deducted at source (TDS) on interest स्रोतमा कर कट्टी
Banks in Nepal deduct tax from deposit interest before paying it, so the interest you receive is already net of tax. For individuals the rate depends on whether you have a PAN; see Byajdar's guide for the current rates and examples.
Definitions are general information, not financial advice. Rates and rules change; see how Byajdar collects data. Spotted an error? Tell us.