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2 CHAPTER 1

3 Introduction

4
1.1 Background of the study
5

Internship has been a wonderful experience for me. It is the medium through which
interns can convert the theoretical knowledge into the practical one. Practical based
knowledge is very necessary to cope up with the external environment. In other words,
internship has been a window to the outer world. It is obvious that only theoretical
knowledge is not sufficient to tackle with real time problems. So to update with the
knowledge, practical knowledge is very necessary. Internship not only gives the ability to
think and makes able to give the decision at real time and situation but also show the way
how an office environment is like, how it functions and what motivates the employee to
perform well. "Internship creates professionalism inside ones mind."

6
7

Internship is the period in which interns get the great opportunity to expose their talents,
skills and knowledge to solve the practical problems. By exposing the interns in the
organizational environment they can learn the organizational culture so that it is very
convenient for their placement in the host organization according to their internship
performance. This will help them to build the career and also broaden the knowledge.

8
9

The interns should also submit report based on the work performed during the internship
period activities performed in the bank for the fulfillment of degree. So here I am going
to prepare the internship report on overall banking performance of Nepal Bank Limited.
To see how much of contribution NBL has made in the financial sector that effects
nations economy through Nepal Bank Limited (NBL), Nepal comes under developing
countries. Financial sector is considered to be the nucleus of growth model designed for
the economic development of the country in which banking industry plays key role. The
banking sector is an integral part of any economy, and plays a vital role in economic
development and prosperity of an economy. The banks ensure the smooth running of

economy my effective mobilization of the fund. A bank today, is not just an institution
where we can deposit our money or take loans from; rather its scope is getting wider day
by day. A banks service today can be seen as a morphing of various financial
products/services, which seems to be of ever more increasing variety. Nepal financial
system has significantly both in terms of business volume and the size of markets. After
the establishments of central bank Nepal Rastra Bank on Baisakh 14, 2013 under NRB
Act. 2012; Nepalese financial system has experience the continuous development. NRB
plays vital role in supervising, promoting and directing the functions of commercial bank
activities. After liberalization policy by the government, the banking industry of Nepal
started to rise they achieved the desired growth. Nepal bank limited is first bank of Nepal
and it was incorporated in 1937.
10
11 Nepal Bank Limited has been playing vital role in development of the banking sector of
Nepal. Generating profit through borrowing and lending is the core function of the
commercial bank. This function helps to uplift the economy of the country by collecting
the funds in micro level and lending in macro level and, mobilizing the funds from
surplus level to deficit level. The success of the bank depends on the maximum collection
of and the optimum disbursement of the fund with minimum risk. For optimum
disbursement of the fund with minimum risk bank needs to have the strong body to
control the risk and flow of the loan. In any bank this function is handled by credit
department. The commercial bank also helps in export and import of goods and services.
For this there is a department called Letter of Credit (LC) Department. Banking sector
occupies the major part in the whole world economy.
12
13 The mission of BBS program has the adequate attention to equip students with
knowledge, methods and technologies that will aid a person to mould into a human
resource capable of gaining even in unfavorable situations. The internship helps the
students to understand banks culture and environment and develop their own insights
towards the banking industry which leads them to develop various professional qualities
and skills.
14

1.2 Objectives of the study


15 The main objective of the internship program is to relate the theoretical knowledge with
practical one in various business organizations under the area of specializations. The
study also helps to gain professional experience in the real work environment. The main
objectives of enrolling in the Nepal Bank Ltd. as an intern are as follows: To know the
real business environment of banking sector.
ii) To understand the whole working process of the banking industry.
iii) To get brief idea of all the departments of the bank.
iv) To understand the customers choice, competitors standing and existing regulatory
environment of banking sector.
v) To acquire practical knowledge about banking activities.
x) To find out the problems and prospects of customers of banking sectors.
16

vii)

To gain working experience.

17
18 1.3 Methodology of the Study
19 In this internship report, the primary as well as secondary information has been used. The
information is collected from interview, websites and annual report of Nepal Bank
Limited. The internship report is based on my own experience that I have faced in Nepal
Bank Limited, Head Office and main branch, New Road, Kathmandu
20
21

1.3.1

Organization Selection

22 I have completed my internship program from Nepal Bank Limited, head office, main
branch. For selecting this organization, I had tried through my personal approach as well
as from my colleges internship Letter. After my regular follow-up, the bank agreed to
give me an opportunity to acquire knowledge/expertise through internship program with
effect from 6th Paush , 2072 to 5th Falgun , 2072.

23
24 1.3.2 Placement
25 Regarding the placement during the internship period, I was placed in different

department of Nepal Bank Ltd, New Road Banking Office. So with the reasonable
guidance of the members I started internship from Bills Department, Remittance
Department, Customer Service Department and Credit Department. This eight weeks
internship really helped me to develop managerial and interpersonal skills. I was able to
learn the bank culture, work environment and working procedure of Nepal Bank Ltd,
New Road Branch. Eight weeks of time is not sufficient to gather overall knowledge of
Banking, but however these eight weeks of internship had really been awfully
knowledgeable and fruitful for me to gain at least brief understanding of it.
26
27

1.3.3

Duration

28 The duration of internship period has been defined for eight weeks by Tribhuvan
University. So I have completed two months in Nepal Bank Limited, head office, main
branch.
29
30

Table 1.1
31
32

37
39
41
43
45

Duration of Internship

Departments

35 Customer Service
Bills/Clearance
Locker
Credit
Remittance
Front Desk

46

Pension

33 Weeks
34
36
38
40
42
44
47

2
2
2
1
1
1

48

49
50
51
52 1.4 Activities Performed in NBL
53 During the entire internship period, the interne had time to visit different departments like
Remittance, Customer Service Department, Bills Department, Pension, Front desk, Credit
and Locker Department. The activities performed on these departments are as given
below.

54
55
56
57
58

Table 1.2
59 Activities done in different departments
60 S

61 Department

62 Activities performed

64 Customer service

65 Opening and closing accounts,

.
N
o
.
63 1

department
66 2

67 Bills

cheque printing, handling


customers queries etc.
68 Collected interbank cheque, check
scanned as per ECC procedures.

69 3

70 Locker

71 Signature verification, opened


lockers, records of payments from

72 4

73 Credit Department

locker, data entry in excel file etc.


74 Filing the documents as per the
type of credit provided.

75 5

76 Remittance Department

77 Preparing debit, credit ,double


entry vouchers, cheque deposits,

78 6

79 Front Desk

data entry etc.


80 statement printing, Handling
customers, checking balance

81 7

82 Pension

through ABBS
83 Signature verification, renewal of
different pattas, handling
customers queries etc

84

85

86 1.3.5 General knowledge of Software


87 Nepal Bank Limited, Newton software is used for the daily functions of its banking
operation. Newton is latest and modern technology that it fast, easy to use and easy to
understand.
88
89 Hot Keys used in Newton are;
90 F2
91 Clear the box
92 F3
93 Get the least from drop down box
94 F4
95 Utility search
96 F5
97 Register/Open
98 F6
99 Update
100
F
101
Delete
7
102
F
103
Query
8
104
F
105
Send
9
106
F
107
Old account search
10
108
F
109
Calculator
11
110F12
111Exit from the screen
112
113Product Code
114
11510
116Saving account
11711
118Current account
11920
120
Fixed deposit account
121
14
122
Overdraft
123
71
124
Loan
125
51
126
Government account
127
46
128
Temporary deposit
129
44
130
Suspense payment
131
132
Newton Code
133
134
61
135
Customer information creation
100
136
30
137
Account open
0
138
35
139
Account close
0

140
142

30
25

141
143

Deposit
Withdrawal by cheques

14

145

Issuance of statement

21

147

Issuance of cheques

88

149

Account mode operation

0
144
50
146
0
148
1

150
151
152
153

1.3.4
154

Limitation
This internship report is prepared under the consideration of confidentiality and

internship period was for the limited period of two months. Due to the limited time frame
and due to other Trainee in bank it was difficult to work in the entire field and sometime
we have to stay ideal without doing anything. The staffs were busy in their work and
difficult to guide the intern.
155
156
157
158

CHAPTER 2

159

160

Introduction of the Banking Industry


161
162

163

2.1 World Banking History

164

Bank is a commercial institution that provides financial services; including


issuing money in various forms, receiving deposits of money, lending money and
processing transaction and the creating of credit. Banks are the financial institution
established with objectives to collect and safeguard peoples money and, then generate
profit by lending same collected fund to people who wants to invest. A bank provides an

easy way to pay bills through the maintained account. Bank provide many services such
as accepting various deposits, safeguarding deposits, making loans, providing means of
payment, electronic banking and other services such as travelers cheques and money
orders. Regardless of all these things banking industry plays vital role in the financial
system of a country by mobilizing fund from micro level savers to macro level investors
which help in building the backbone of any financial system with maximum utility. A
bank collects money from those who have it to spare or who are saving it out of their
incomes, and lends money to those who require. In general, a bank is an institution with
the following features:
i) It deals with money; it accepts deposits and advances loans.
ii) It deals with credit; it has the ability to create credit.
iii) It generates profit from the difference between the level of interest it pays for deposits
and other source funds, and level of interest received from lending & investment sectors
iv) It is a commercial institution; it aims at earning profit.
165
166

Definition of Bank

167

Bank is a financial intermediary accepting deposits and granting loans. In fact, a


modern bank performs variety of function that it is difficult to precise and general
definition of a bank. According to Prof. Kinly, A bank is an establishment which makes
to individuals such advance of money as may be required and safely made, and to which
individuals entrust money when not required by them for use.

168

According to C.R. Crowther, A bank collects money from those who have it to
spare or who are saving it out of their incomes, and it lends this money to those who
require it.

169
170

2.2 Evolution of banking industry in Nepal

171

According to the history, it is found that people of our country have been involved
in business and trade since long time ago Through the production of copper utensils had
been started during the 7th century, business relationship could not be established with

India since India was involved in the production of copper utensil. However, the craft
concerned with copper, wood and metal in our country did attract the Chinese and the
Tibetan a lot, thus resulting in the establishment of business relationship with China and
Tibet.
172
In 12th century there was silver coin called Dam. Later on in 14 th century

173

TANKADHARI one is that dealt with the lending money to the public. Its main
objective was to earn profit, so they used to charge high interest rate. To control interest
rate TEJARATH ADDA was established in 19th century. It provides loans to the people
working in government offices on the basis of the security and to public on the basis of
collateral they deposit. It charges only 5% interest rate per annum. It only provides loans
but does not accept deposit.
174
175

In 1980 B.S. Nepal could establish business with countries beyond India as well
and first modern bank Nepal Bank Limited was established in 1994 B.S. Kartik 30 th
according to the Nepal Bank Act 1993. Nepal Bank Limited was established with 51%
ownership of Nepal government and 49% of equity participation from private sector.
Later on in 2012 B.S. Nepal Rastra Bank was established with the objectives to maintain
the internal external stability. In 1996 A.D. government established another bank named
Rastriya Banijya Bank to make money transaction easy. Besides that, establishment of
Nepal Industrial & Development Corporation in 1959 A.D .and Agriculture Bank in 1967
A.D. as well as other cooperative societies also started contributing to the economy and
banking tradition in Nepal Grind lays Bank limited established in 1986 A.D. There are
other several commercial banks and in Nepal commercial banks should be registered
under Company Act or Commercial Bank Act under section 12(a) to (w)

176
177
178

179
180
181

2.3 Nepalese Banking Industry

Banking is one of the most sensitive businesses all over the world. Banks play an
important role in the economy and are considered as the backbone of an economy in
every country and Nepal is no exemption. Banks are custodian to the assets of the general
masses. The banking sector plays a significant role in a contemporary world of money
and economy.
182
It influences and facilitates many different but integrated economic activities like

resources mobilization, poverty elimination, production and distribution of public


finance.
183
Banks accept deposits, support the payment system and provide the largest source
of funds in the market. Safe and sound banking is crucial for the financial stability and
sustainable development. Nepal has a special characteristic of bank dominated financial
sector. As the domestic capital market is in the initial stage of development, the banking
sector largely dominates the entire financial sector.
184
The first conventional bank in Nepal was the Nepal Bank Limited, established in
1937 A.D. followed by Rastriya Banijya Bank in 1966 A.D. These two banks are the
pioneers of the Nepalese Banking industry. These banks hold the largest network and
operate even in remote areas of the country. Rastriya Banijya Bank is fully owned by the
Nepal Government while government is holding forty percent stakes of Nepal Bank
Limited. As the financial market was barred for private investors till the mid 1980s, these
two Banks were the only players in the banking industry. The economic liberalization
policy Adopted in the mid 1980s brought about a surge in the banking industry. A large
Number of banks were established and the number continues to grow even today. The
subprime mortgage crisis emerged in the United States during the year 2007 has exposed
Immense challenges to global financial players and regulators. Consequently, banks and
financial institutions experienced banking panics, stock market crashes, bursting of
financial bubbles, currency crisis and sovereign defaults and thereby creating many
challenges to the supervisors and regulators around the globe. Though studies have
revealed that the impact would not be that severe in Nepal, it has necessitated bank and
supervisors to assume precautionary measures particularly on risk management system,
portfolio mix, internal control mechanism and corporate governance.
185

2.4 Types of Banks

186
187

A single institution cant fulfill all the services demanded by the customers. So,
different types of banks emerged in the banking industry concentrating on a special
sector. On the basis of their specialized function bank can be classified as under.

1. Central bank
2. Commercial bank
3. Development bank
4. Saving bank

5. EXIM Bank (Export & Import Bank)


6. other banks:
1

Co- cooperative bank

188
189

Housing bank
3

190
191

Merchant bank

2.5 Services rendered by most of the banks

1. Trade finance
2. Deposits
3. Remittance
4. Clearing / Collection
5. Loans and Advances
6. ATM with any branch banking
7. Safe deposit Vault
8. SWIFT
9. ABBS
10. Fund Transfer
11. 365 Days banking
12. Debit card
13. Auto loan
14. Housing loan
15. Education loan
16. Mahila Bachat
17. Pension Distribution
18. Gold Loan
19. Fixed deposit loan.
20. Travelers Check
21. E Banking

192

22.SMS banking.

193
194
195
196
197
198

2.6 List of Commercial Banks in Nepal


The list of all commercial banks in Nepal is given below:

199
S.N
o

200

Commercial banks

201
1

202

Nepal Bank Limited

203
2

204

Rastra Banijya Bank

205
3

206

NABIL Bank Limited

207
4

208

Nepal Investment Bank Limited

209
5

210

Standard Chartered Bank Nepal

2116

212

Himalayan Bank Limited

213
7

214

Nepal SBI Bank Limited

215
8

216

Nepal Bangladesh Bank Limited

217
9

218

Everest Bank Limited

219
10

220

Bank of Kathmandu Limited

221
11

222

223
12

224

225
13

226

227
14

228

Nepal Credit and Commerce Bank


Limited
Lumbini bank Limited
Nepal Industrial and Commercial Bank
Limited
Machhapuchhre Bank Limited

229
15

230

Kumari Bank Limited

231
16

232

Laxmi Bank Limited

233
17

234

Siddhartha Bank Limited

235
18

236

Agriculture Development Bank Limited

237
19

238

Global Bank Limited

239
20

240

Citizen Investment Bank Limited

241
21

242

Prime Commercial Bank Ltd.

243
22

244

Bank of Asia Nepal Ltd.

245
23

246

Sunrise Bank Ltd.

247
24

248

249
25

250

KIST Bank Ltd.

251
26

252

Mega Bank

253
27

254

NMB Bank

255
28

256

Janata bank ltd.

257
29

258

Century commercial Bank Ltd

Development Credit Bank Ltd./ Grand


Bank Nepal Limited

259
30

260

Civil Bank Ltd

261
31

262

Sanima Bank Ltd

263

264
265
266
267
268
269
270
271
272
273
274
275
276

CHAPTER 3

INTRODUCTION OF NEPAL BANK LIMITED

277

278

3.1 Nepal Bank Limited

279
280

Nepal Bank Limited is the first conventional bank of Nepal, established in 1937
AD. Nepal Bank Limited in the beginning operated as a central bank and later was turned
into a commercial bank under the new Bank Act. Nepal Bank Limited is the pioneer
bank, started with objectives to render service to people and to contribute to the nations
development.

281

Nepal Bank Limited holds the largest network and operates even in remote areas

of the country. Government holds forty percent stakes of Nepal Bank Limited. As the
financial market was barred for private investors till the mid-1980s, Nepal Bank Limited
along with Rastriya Banijya Bank was only players in the banking industry. The bank has
an important role in supporting economic liberalization policy adopted in the mid-1980s.
282
283

It holds the vision of remaining the leading financial institution of the country.
Nepal Bank Limited holds the exclusive identity of serving most of the towns as well as
the corporate consumer.

284

285

3.2 Product, Services and Facilities

286
287

Though Nepal Bank Limited is first bank of Nepal it has been the innovator in
introducing many new products. To illustrate, the bank has implemented till the following
products now

288
289

1) Free ATM, ABBS, CHEQUE BOOK, STATEMENT and SMS

290

2) Different Credit Facilities

291

3) Letter of Credit and Guarantee Transaction

292

4) Remittance Facilities from Different Countries

293

5) Internal Remittance Facilities

294

6) Locker Facilities

295

7) Foreign Currencies Exchange

296

8) Internet Banking Service

297

9) Bills and Clearing Facilities

298

10) Accidental Death Insurance

299

300
301

3.3 Mission

Nepal Bank Limited seeks to provide an environment within which the bank can
bring unique financial value and services to all customers. It will be sound institution
where depositors continue to have faith in the security of their funds and receive
reasonable returns; borrowers and assured of appropriate credit facilities at reasonable
prices; other service- seekers receive prompt and attentive service at reasonable cost;
employees are paid adequate compensation with professional career growth opportunities

and stockholders receive satisfactory return for their investment.

302

Values Statement

303

At Nepal Bank Limited, we believe that our banking should be based on:
304

Respect, service and safety for the customers we serve

305

Respect, reward and opportunity for the people with whom we work

306

Respect,

cooperation and support for the economic community of Nepal.


307
308

309
310
311
312

3.4 Vision
To remain the leading financial institution of the country."

313

314

3.5 Objectives

315

Nepal Bank Limited has the following objectives:

Continue to maintain leading share of banking sector with a significant presence in all
major geographical areas in the country.

Provide competitive and customer oriented banking services to all customers through
competent and professional staff.

316

Reclaim leadership within the national financial community

317

3.6 Capital structure of Nepal Bank Limited.

318

The authorized capital of the bank is NPR 1500 million, of which 1000 million is
the issued capital and the total paid up capital of the bank at present is 700 million. The
promoter share constitute the major portion of the bank share which stands up to 70% of
the total capital structure and remaining 30% will be held by the general public for which
the bank launched I.P.O on May 24, 2009. The bank had the highest paid up capital from
the promoters among all the commercial banks in the country at the time of its
commencement.

319

320

3.7 Network Overview

321

The table below shows the number of different branches of NBL located all over

the country.
322
323
324

Region wise

325 No of Branches

326

branches
Kathmandu Region

327

29

328

Biratnagar Region

329

32

330

Birgunj Region

331

23

332

Pokhara Region

333

21

Nepalgunj Region

335

18

334
336
338

Table 3.5
Branches of NBL

Total no of Branches

337

123

Source: www.nepalbank.com.np
339

340
341

3.8 Board of Directors:


The bank is under

the control of Central Bank of Nepal, Nepal Rastra Bank (NRB). NRB has appointed a five
members management committee. This management committee performs as the board of
director of the bank.
342
343

Management Team

The bank is running under the leadership of Nepal Rastra Bank (NRB) appointed three
management team under the leadership of NRB director, Mr.Maheshwor Lal Shrestha.
344

Structure of NBL

3.9 Organization

345
346
347

CHAPTER 4

Analysis of Performed Departments

During the internship period, the internee had performed a range of


activities in various departments which helped to widen their knowledge about banking
activities and practices. Internee performed various activities at different departments:
customer service, remittance, bills, front desk, pension, credit, and locker department.
The activities performed at each of these departments are explained below:

348
349

4.1 Customer Service Department:

350

Customer service department of any bank is the most important department


where customers are taken due cares. Here I worked for 3 weeks. The Customer Service
department is responsible for handling, order processing, product and service questions,
bank information, system transfers, and other general inquiries. The accounts that I have
opened are mentioned in the Annex.

351

Responsibilities at Customer Service Department:

352

Providing the necessary voucher as their required.

353

Filling the pass book if they request us.

354

Enquiring their available balance.

355

Customer reception and attending to their needs.

356

Managing the various forms and voucher such as different new account
opening forms, etc.

357

Entering the personal information.

358

Disseminating information related to various banking products and services


that are available to satisfy needs of customers.

359

Helping the customers to open the new account and the forms are filled up
precisely as per the needs

360

Scanning the signature and photograph of the customers (stamps as well in


case of the account of the companies).

361

Marinating the record to total number of cheque requisition issued by the

customers and preparing the chequebook.


362

Providing the bank statement to the customers to see their transaction being
taken place.

363

Providing

important

message

to

the

customer,

maintain

good

communication to the customers.


364
365
366
367

Customer Counseling

368

Help desk Department is very crucial for the success of bank. Customer
counselling is the most important function of this department. The efficiency of the
department or an organization is the outcome of the quality of the customer counselling
that is provides. It is concerned with counseling the new as well as the existing clients
regarding the products services provided by the bank.

369
370

Account Opening

371

It is the most frequent activity done in this department. To deposit the


money the customer must open the account in the bank which on one hand gives the
benefits to their deposited amount as (interest) on other hand the money is secure in the
bank than at home. Customers can open their account as per their wish UN various types
of accounts, which are mentioned below:

372

Current-Account

373

Fixed- Account

374

Saving-Account

375
376

Requirement to open new account:

377

Customers are required to fulfill some basic requirement before they open
their account. Those requirements are mentioned below:

378

For Personal Account:

379

Personal

Identification

(Citizenship

photography/ 3 if if the person is illiterate)

Certificate

and

copies

of

380

Nominee Declaration (If any ).

381

For partnership Account

382

Letter of Partnership duly signed by all partners

383

Copy of the Partnership duly signed by all partners

384

Copy of the Partnership Agreement

385

Certified copy of Partnership Registration

386

Account of corporate bodies, copy of:

387

Memorandum and Articles of Association of the Company

388

Resolution of Board of directors to open and operate an account

389

List of directors duly signed by respective directors with home address and
phone numbers.

390

Certificate of commerce of commencement of business

391

Accounts of clubs, societies and associates (all Documents to be duly


certified by the charity)

392

List of Office Bearers

393

Copy of Resolution to pen and operate the account

394

Copy of by-laws

395

Name and signature of persons authorized to operate the account

396

Copy of the registration certificate.

397
398

For Minors:

399

Guardianships to be verified with related documents:

400

Nominee form:

401

Photography of the nominee

402

Signature of the nominee

403
404

For Clubs/Societies and Association:

405

Copy of Registration Certificate

406

Copy of By-laws

407

Copy of Resolution to Open and operate the account

408

List of members

409
410

For Corporate Body:

411Certificate of Incorporation
412

Memorandum and Article of Association of teh Company

413

Resolution of Board of Directors to open the account

414

Sample of Company Seal

415

Name of the Directors of the Board

416

For Partnership Account:

417

Certificate of Partnership Registration

418

Copy of Partnership Deed, if any

419
420

For Proprietorship Account:

421

Registration Certificate

422

Identification of Proprietors

423
424

Procedure of Account Opening in NBL:

425

Fill the account opening form along with the signature card.

426

Check the application form being held by the customer and see whether all
the required information is being properly filled or not.

427

Verify photocopies of documents with original one and attest it with the
form.

428

The new account opened is being entered in the account opening register
and account number is written in the form and voucher.

429

The hard copy information is being converted into the soft copy by entering
all the information in the banking software.

430

Scan signature and photograph of the account holder to make signature


accessible.

431

Higher-level staffs approve the account opened.

432

Customer are then provided with the cash/cheque deposit voucher for
depositing cash in their newly opened account to maintain the minimum balance set by
the bank to operate the account.

433

After all the necessary entries are made, check list as per the type of
account opened is provided to customer by entering in the cheque dispatch book.

434

In case of illiterate customers blue color book is provided which is also


known as pass book.

435
436

In addition to the documents as per stated above as per NRB rule any one
of the following document is also needed to proof the address of the customer:

437

Water/electricity/Telephone bill

438

Election identity card.

439

Land ownership paper.

440

Rent agreement, others

441
442

Account closing

443

Customers also need to close their account because of different reasons.


While closing the account, customers need to fill up the account closing form. After
filling the form the last balance that is to refunded is calculated with deducting the charge
the bank will draw charge for closing the account. After that the account should be closed
and refund the remaining balance to the customer. The presence of the account holder is a
must while closing the account, the cheque book and ATM if presence, must be returned
to the bank.

444

Procedure for closing account in NBL

445

The process of account closing start with the viewing of the of the balance
available in his/her account.

446

The account holder must present in the bank. With all the statement
provided by the bank.

447

Then the account holder must fill the application form of account closing.

448

With the deduction of charge for closing of account the remaining amount
is paid to the customer.

449

The account holder will issue the cheque according to the amount left.

450

The application

form and the document which the customer had, is

submitted to the authorized staff who has the authority to close the account.

451

The cheque/pass book is tear or damage so that is will not used again.

452
453

Cheque book issuance

454

Procedure for issuance of cheque book in NBL

455

There is provision of providing cheque book for the customer who has just
opened account in NBL.

456

For the old account, cheque book are issued against cheque requisition
form.

457

Generally the number of leaf used to be ten but provided as the demand of
the customer.

458

The account holder should present while receiving the cheque book.

459

For The older customer the requisition form have to be filled and submitted
to the authorized person. The authorized person will approve it writing yes or ok .then
the cheque is printed.

460

In case the account holder is not present, the agent who has come to receive
the cheque book should provide following information:

461

Name of the accountholder

462

If he/she has the account in the same bank then his account number if not
the photocopy of identity card.

463

Once the cheque book becomes ready for delivery, it should be entered in
the cheque book issue register the entire particular like cheque number, account holder
name, number, date, etc related to that cheque book, signature to cheque book recipient to
be obtained in the register as a proof of delivery of cheque book.

464
465
466
467
468

Record Keeping

469

The record keeping is the day to day task of CSD. The record should be
kept for all the transaction such as cheque requisition, cheque issued record, account
opening record, account closing record, etc.

470
471

472

4.2 Bills/Clearance Department

473

In this department customers bring checks of different bank and those checks are
processed in order to deposit the amount to customers account in different other
branches or the same branch. The clearing department is responsible for the clearing of
all checks that the bank receives daily and the different types of clearing checks that
come in the bank are:

Inward Clearing

Outward Clearing

Outward Bills for Collection

474
A. Inward Clearing
475

Inward clearing takes place when a KBO account holder draws a check in favor
of a Non- NBL account holder. The process for inward clearing is as follows:

Checks of NBL are received by the operations department electronically sent by


scanning the checks by other banks through ECC(Electronic Check Clearance)

The bank officer verifies all particulars from the instruments and the system for
sufficient balance etc. and approves the check. If any fault is found, then the officer
will mark the checks as a return, stating the reasons with them.

If no fault is found, then the officer will post these checks in the system by debiting
the customer account.

The particular of the returned checks are entered in the O/W return of inward
clearing register and returned.

476
B. Outward Clearing
477

Checks drawn by Non-NBL customers in favor of NBL customer and deposited at


same Branch are known as outward clearing checks. The process for outward clearing is
as follows:

Cheques are received by the bills department of NBL.

NBL stamps, endorsement stamps and ECC (Electronic Check Clearance) stamps are affixed
along with endorsees signature.

Checks are then sent to related banks by scanning and editing the information as per ECC
rules.

For those institutions which doesnt have the ECC model of check clearing, traditional
manual way of check clearance is performed as :
478

Checks received by bills department are sent to Nepal Rastra Bank for clearance and
checks are presented to related bank.

Customer in favor of whom the check is drawn is credited after approval from the related
bank.

If any check returns the next days as a returned, the posted entries are reversed and the
check is returned to the customer who presented it and is recorded in the check return
register.

479
C. Outward Bills for Collections
480

There are some checks that are drawn by a Non NBL account that is outside the
city area in favor of NBL account holders and thus are treated as OBCs. The process for
clearing of the OBCs is as follows:

Cheques received by NBL.

The officer affixes the OBC stamp on the checks and writes its individual number from the
OBC register.

Entries of all OBC checks are written in an OBC register.

An OBC letter is printed, which shows the check numbers, the branch drawn on and amount.

Original checks are attached to these letter and sent to the main NBL branch in that area by
courier

When that area branch clears the amount from the Non-NBL branch, it sends an Inter Branch
Credit Advice (IBCA) to NBL and the officer at the branch credits the customer account with
that amount.
481

482

483
484

4.3 Locker Department


The Locker Department or Safe Deposit Vault ensures the safety and security of
valuables of customers. There are 8176 applicants using locker services at present;
referring to data of May 8 2015. There are 9 types of locker depending on the size. An
annual charge has to be paid in advance to use the locker service. The locker charge
ranges from Rs. 2,000 to Rs. 6,400 per annum. The locker demand of NBL has rose due
to current earthquake. During the internees placement in Locker Department, the
following activities were performed:

485
A. Verifying Applicants
486

In locker department, the intern had to check on the customers entry and exit, to check

whether the responsible locker owner has come to take their belongings or not. Moreover we had
to check on their code to make sure of the liable customer. The applicants needed to fill up a
form with signature specimen which was tallied with their application document of information.
After signature verification they need to sign these application documents with current date and
time.
B. Locker Charges
487

There were two ways to pay for locker services. First is to pay by cash depending on the

locker size and second is to deduct amount from customers saving account. The NBL staffs were
responsible for listing customers who paid with cash and who did not. The cash payments were
recorded directly into ledger entries with reference as their payment receipt. The charge
deduction from saving account required checking the sufficiency of their balance.
488

Procedure of deducting locker charge from saving account

489

The intern was given responsibility to deduct the locker charge from their saving
account. For that the intern had to open NEWTON with code 250 and check for balance.
Those accounts which had enough balance were copied in a voucher heading with
account number, name, locker number, type of locker and date. Two different dates (date
of renewal and payment expire date) were noted down.

490

Once again the intern had to open NEWTON with code 20270 where they had to
enter account number, locker charge in debit section and total amount with code
45010100 in credit section and then send button was clicked and txt number was noted
down.

C. Making Ledger Entries


491

The ledger entries after cash payment and amount deduction were posted into a
ledger book. The entry requires writing locker number, locker holder name, type of locker
based on size, charged amount, date of renewal, payment date and payment expiry date.
The amounts deducted

from saving account are first listed into a statement before

making ledger entries.


492
D. Making Data entries
493

The information about the lockers were entered into excel files for easy access
which included the information about the locker holders name, address(both permanent
and current), contact number, nominee, authorized person, application number, locker
number, key number, code, registration date, last charge paid date, and expiry date.

494
495

496

4.4 Credit Department

497

This department looks over the various kinds of credits or loans taken from the banks. It

ensures that thorough investigation is undertaken of the client who wishes to take credit from the
bank. The bank provides consumer loan such as home, auto, term loan, and overdraft loan. It also
provides hypothecation and consortium loan. During my time in this department, I maintained
the files according to their respective topics and got to learn about different types of loan
provided by NBL.
498

499
500

4.5 Remittance Department


Remittance means a sum of money sent in payment for something. This
department deals with either the transfer of money from one bank to other bank or from
one branch to another branch for their customers. Remittance is important tool and Nepal

Bank Limited holds a key advantage due to its number of branches. Remittances are
received or send within the country or from foreign countries. Nepal Bank has strategic
alliances with foreign companies like Eastern Exchange Est. Doha, Qatar, Arabian
Exchange Co. W.L.L. etc.
501

NBL offers the following forms of remittances:

502

A. WEB remittance

503

B. Demand Draft remittance

504
505

A. Web Remittance
506

In the web there is generally inward and outward department. In inward


department once the payment comes from the other branch then it is checked and if the
stated person in the web is present there then he is asked to fill up a form and show
his/her citizenship card. And a photocopy of it is kept and the record is made in the
computer then the amount is transferred to the respective persons account and is paid
cash if the customer does not possess any account in NBL.

507

In outward department the customer fills up the form and deposits the money at
the counter and the money is send to the receiver through web by feeding up the
information with the help of form. For the authentication purpose, secret key is generated
on the system then the depositor is given 8 digit secret key which he needs to inform the
receiver and if the receiver has his account then he can take his citizenship card and get
the money transferred to his/her account.

508

B. Demand Draft Remittance


509

An unconventional order in writing-signed by a person, usually the exporter, and


addressed to the importer-ordering the importer or the importer's agent to pay, on demand
(sight draft) or at a fixed future date (time draft) the amount specified on the face of the
draft.

510

Outward Drafts
511When a person or a company wants to make a draft on the exporter company then at first
company needs to present Performa invoice to the bank and on the basis of the invoice
the bank prepares the draft on behalf of the customer to the third party.

512
513

Inward Drafts
514

Nepal Bank limited has system of honoring drafts drawn on us by many banks
denominated in major currencies such as USD and Euro.

515
516

517
518

4.6 Front Desk


It was previously a part of customer service department. It is now given a separate
space in Kathmandu Banking Office of Nepal Bank Limited. It is a place where customer
inquiries are responded. During the internees placement in Front Desk, the following
activities were performed.

519
A. Statement Printing
520

The intern was given the responsibility to print statements of customer since the
very first day. The front desk computer uses Newton Software System to print Balance
Statements. The Newton System operates with teller id, branch code and password. The
employee of Nepal Bank Limited is responsible for starting the system. Printing
Statement is supported by Newton code 1450. Once the code number is entered a
framework is obtained. The statement printing requires feeding in account number of
respective customers and the transaction date. The respective customers must specify the
transaction date. Once customer account number and transaction dates are entered the
information is forwarded to IT department. They verify the account number and send
confirmation message if the account number is correct. Thus, printing is done by hitting
the PRINT button. The intern used to print 100-200 statements per day for six days in a
row. The customers using this service are registered under Kathmandu banking Office of
Nepal Bank Limited.

521
B. Queries Handled
522

This was also an important task in the front desk. The basic queries of customer
were balance inquiry and account number verification. The balance inquiry of customers

allows them to know their current balance in their accounts. There are two ways to handle
balance inquiry; the Newton system and ABBS (Any Branch Banking System)/ Pumori
System. The Newton system responds to customers registered under KBO and ABBS
system supports customers registered under other branches. The code for balance inquiry
under Newton system is 250. The code input gives a framework where entering
customers account number shows balance in their respective account.
523

Pumori system is a web-browser dependent system; instead of code you select


withdrawal option from the menu bar, enter account number and press search. Thus,
balance amount is obtained. The other query was verifying account number. This service
is only available to KBO customers. The intern used the same framework form code 250
for this task. The intern was supervised to search account number using customer name.
When account number appears tally signature and photo of the customer asking for
account number verification.

524

Some other queries that they responded to were about NBLs swift code, interest
rate on deposits, interest on loan, direction to other department, banking hours, evening
counters and ATM outlets. They were under the supervision of NBL staff and she helped
them in handling queries and responding to customers.

525

526

4.7 Pension Department

527

A pension is a fixed sum to be paid regularly to a person, typically following


retirement from service. There are many different types of pensions, including defined
benefit plans, defined contribution plans, as well as several others.

528

Different product codes are there like 1010 for civil servants, 1020 for teachers,
1030 for defense and 1040 for NBL employees. Each people have their unique PATTA
NO which is entered as soon as it is entered, data relating to employee like their name,
post, pension amount, tax amount etc. is shown. The voucher is printed and the bill along
with the pattas is signed by the department head. Then the retired people take that
voucher to the cash department to get the money

529
A. Renewed of Pension PATTA
530

For the renewal of pension PATTA, a form has to be filled which contained Date,

PATTA no, Name of PATTA holder, along with his/her pension account number at the top
of the form. The form was divided into two sections, at the left side of the form they had
to fill the name of the incharge of the pension department, his post, his staff number, date,
bank code along with pension stamp. At the right side they had to fill name of PATTA
holder, their address, finger prints and signature. Lastly they had to present the form to
the in-charge for their verification.
531
B. Helped to Fill Cheques
532

If the pension PATTA were renewed on time then the monthly pension amount
goes directly to their pension account. Those parties who had pension account brought
cheque book along with them and withdrew cash from cheque. The old people who were
unable to fill the cheque for them the intern personally wrote their cheques with the
amount they desire to withdraw. After that they took their signature on the cheque and
presented to the staff for verification.

533

To open a Pension Account

Open your Newton Account

Make display 61100 screen to open new pension saving account


-

61100 for opening account

Input the following details:


-

Transaction type individual

Customer ID type Citizenship number

Character Code 5221= Individual-Resident

ID Number Write (type) the pension patta number of the pension holders.

After pension patta number type(input) the product code of the pension patta.

After completing all above procedure click the send option of your screen which is shown
at below into the right corner.

OR, press F9 which automatically commands send option.

After this commands your display will get new screen to fill up customers details.

Necessary to fill the customers details

Customers full name

Permanent address along with contact number ( preferred mobile number)

Job code- 1899-others

Introducers Name1 and Name2 (as per pension patta)

Gender

National code- country(Nepal i.e. Np)

After finishing all these information press the send option or F9 key.
534

Now your screen will display one notice message board. Click at OK in that
message board or Press ENTER key.

535

536
537

538

CHAPTER 5

Conclusion

539
540

The economy of the country is booming and with the investment favorable
policies and their smooth implementation, the role of banks in todays economy have
become an important one. The banking industry is also reaping the fruits of this economic
boom by growing rapidly over the past few years. There are a number of banks opening
in the economy with foreign investments coming into the banking sector.

541

Nepal bank Limited culture is built on a set of core values: client focus,
teamwork, meritocracy, ethic and integrity, pioneering. The company is committed to its
clients best interests as well as preserving a good relationship by defining realistic
objectives.

542

Since the establishment of Nepal bank Limited, it has aimed to become the
leading bank of Nepal by providing outstanding services. The services that Nepal bank

Limited provides have a great market penetration not only because of their features but
also the profit and markup rates that they charge. Also the products that Nepal bank
Limited provides cater to sector economy.
543

Furthermore, as the bank is growing, new and more energetic employees are
entering which is sure to invigorate the performance of the bank.

544

Lastly, to become the leading bank of Nepal, Nepal bank Limited has to
benchmark its services to its major competitors in the industry or the market leader in the
industry and provide a continuous mean of improvement in its existing products and
services, while introducing new ones to the industry.

545
546

As per the rules and regulation of Nepal Bank Ltd, We the intern have to persuade
atleast 10 new customers to open an account in the Bank. So, I have completed this task.
The following are those new customers which I have opened. So, the details of those new
customers are as follows:

547
548
549
550
551

552

Name of Account Holder

S.N
554

555

Bipin Rai

553

Number
556
2-10-

1
557

558

Menuka Gurung

559

592635
2-10-

Situ Shrestha

562

592643
2-10-

565

592651
2-10-

568

592669
2-10-

Arjun Pd/Mathura

571

592677
2-10-

Lamichane
Jitendra Kumar Sha

574

592685
2-10-

Lahana Majhi

577

592682
2-10-

2
560

561
3

563

564

Sureshwor Raj Tandukar

4
566

567

Ram Kamal Raut

5
569

570
6

572

573
7

575

576

Account

8
578

579

Alisha Khadka

580

592708
2-10-

583

592619
2-10-

9
581

582

10
584

Kamala
Dahal

592627

585
586
587
588
589
590
591
592

Bibliography
593
594

Annual report of Nepal Bank Limited

http://www.nbl.com.np

http://www.google.com

http://www.wikipedia.com

595