Commercial banks have for the first time come out to say they are ready to slash interest rates in 2021. [File Photo]

Commercial banks have for the first time come out to say they are ready to slash interest rates in 2021.

This is being done not only to entice new clients in the COVID-19 period, but for banks to protect vested interests due to the harsh reality of the pandemic.

Association of Banks Chair, Rakesh Ram says interest rates will not be going up anytime soon.

Ram says this will benefit them and customers.

“We are having a much significant higher risk book, we are passing the interest rate reduction to the customers because at the end of the day it is a win-win situation. I want my debt to be recovered and I want to make it easier for customers to meet the loan repayment.”

According to Ram, banks have already reviewed and reduced some interest rates in the past few weeks.