85% means only 85% operation cost is included in Base Rate. This is not what you have said 90 days in a quarter and 5 days discount. Why only 85% of operation cost included in Base Rate? Remaining 15% to be covered from the non funded business income- such as bank guarantee and L/C commission
Thank you for your query. Banking business has multiple sources of income broadly interest and non-interest income. The major income source is interest income, so the most operating expenses made by banks belong to the work and activities related to interest income. This is one of the simplest reasons why 85% of operating expenses are allocated in calculation of Base rate.
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Very well explained
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Thank you😊
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Thank you
sir saving deposit rate kya hota h
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85% means only 85% operation cost is included in Base Rate.
This is not what you have said 90 days in a quarter and 5 days discount.
Why only 85% of operation cost included in Base Rate?
Remaining 15% to be covered from the non funded business income- such as bank guarantee and L/C commission
Thank you for your query.
Banking business has multiple sources of income broadly interest and non-interest income. The major income source is interest income, so the most operating expenses made by banks belong to the work and activities related to interest income. This is one of the simplest reasons why 85% of operating expenses are allocated in calculation of Base rate.
Sir repo rate ra policy rate same hora
For Nepal, NRB has considered repo rate as the policy rate
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