(1) The institution shall determine the interest to be given and taken in micro-savings and micro-loans subject to the policy guidelines of the National Bank. The institution shall inform the bank within seven days of the determination of the interest rate by the institution. (2) Notwithstanding anything written in sub-section (1), the bank may instruct the institution to further reduce the interest rate determined by the institution and it shall be the duty of the institution concerned to comply with such instruction.