AN INTERNSHIP REPORT ON

CSD, REMITTANCE AND CLEARING DEPARTMENT, AND

PENSION DEPARTMENT OF

NEPAL BANK LIMITED

Submitted By:-

Utshav Poudel

Platinum Management College

Submitted To:-

Nepal Bank Limited

Dillibazar Branch Office

 Acknowledgements

The completion of this report was possible only because of the support of many
people, Intern benefitted immeasurably from their knowledge, suggestion, and
feedback. Intern would like to express gratitude towards each of their help in
providing valuable information and responding to the queries. First of all, intern
would like to thank "Nepal Bank Limited" for believing the intern and giving a
chance to complete intern's internship.
Throughout the internship period of eight weeks at Nepal Bank Limited, Intern was
given opportunity to work in various departments like Customer Service Department
(CSD), Remittance and Clearing Department, and Pension Department. Intern also
gets an opportunity to be familiar with the bank and its environment.
Intern wants to express great debt to all subject facilitator of BBA (Platinum
Management College). Intern would like to express gratitude to staff of Nepal Bank
Limited for being so kind, cooperative and providing intern with necessary
information for preparing the report. Lastly, Intern is thankful to all seen and unseen
hands who contributed in finalizing this report.

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 Abbreviations

ATM : Automated Teller Machine

BBA : Bachelor of Business Administration
CSD : Customer Service Department
L/C : Letter of Credit
NBL : Nepal Bank Limited
NRB : Nepal Rastra Bank
SMS : Short Message Service
PU : Pokhara University

2
CHAPTER ONE

INTRODUCTION

1.1 Background

The Bachelor of Business Administration (BBA) is a special program in semester

system, designed to develop socially responsive, creative, and result oriented
management professionals to fill up the middle level managerial positions in the
rapidly growing business sector in Nepal and abroad. It is a Four years course with 8
semesters. BBA is a course that prepares a student step by step towards
professionalism in the field of Business and Economy.

An internship is an opportunity to integrate career related experience into an

undergraduate education by participating in planned, supervised work. Internship is an
initial and a very vital step for us students to understand and work in a corporate
world. The internship program provides practical exposure the organizational
environment and also enable or develop ones skill to understand and how to know to
handle work related problems. It also helps to develop interpersonal skills and ability
to work under immense pressure. It is also beneficial to get convenient placement in
the host organization or at the organization. With an objective of gaining practical
knowledge about how an organization works and how we are supposed to work for it
internship therefore prepares the students for their future ahead.

Eight Semester students need to undergo internship in an organization for minimum

of eight weeks, for partial fulfillment of BBA program. Internships are arrangements
in which college students lend their talents to companies in return for an opportunity
to develop business skills and gain exposure to the work environment. Such
arrangements can provide them with valuable work experience and an opportunity to
line up a job before graduation.

1
1.2 Objectives
Basically, reason behind doing intern in particular corporate house is to achieve the
practical knowledge of the different departments operating in an organization.
Therefore, particular objective of intern in Customer Service Department are stated as
follows:

To know about the general activities performed in CSD.

To know the products and services offered by Nepal Bank Limited.
To know how to deal with customers.
To understand the account opening and closing process.
To enhance skill required for banking process.
To know what kind of software were used to handle the day-to-day
transactions.
To know how theories concepts are implemented practically in day-to-day
operation.

1.3 Methodology

This internship report is the study of particular subject backed by the collection,
compilation, presentation and interpretation of relevant information. It starts from the
selection of the organization for the internship, performance of different kinds of
activities and placement in different parts of the organization and last collection of
various primary and secondary data for the preparation of the report

It helped to analyze the findings in meeting the objectives of the study.

1.3.1 Sources of Data:

For the report the data are collected from the primary source and secondary source.
They are as follows:

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 Primary Data:

Observation of working environment of the bank.

Visited banks and practiced as the intern in order to associate with different
aspects of the banks.

Met with the customers of the bank and had direct contact with them for relevant
information.

Informal discussion and interaction with the staff of the bank.

Secondary Data:

Annual report of Nepal Bank Limited (NBL).

Information from the official website of NBL- www.nepalbank.com.np

Notices and Working guideline of NBL

Application form for different type of account opening

Browsers of the different types of account

Official website of Nepal Rastra Bank (NRB)- www.nrb.org.np

1.3.2 Organization Selection

For the internship one of the accessible successful banks will be given higher priority.
So commercial banks are the appropriate organization where the intern could tally the
theoretical knowledge into practical implications. While selecting the banks the intern
was looking for the bank where the intern can learn a lot about banking as well as
financial activities so the intern happen to select the Nepal Bank Limited. The intern
approached the bank and after few days the intern was call to sign the contract letter
and was asked to join the bank from 26th Poush, 2073 B.S

3
 1.3.3 Placement

After a week, the date for an intern was informed and a contract letter was signed
agreeing all the terms and conditions of the bank. The internship was started from 26 th
Poush, 2073.Intern was appointed at Dillibazar Branch of NBL, Kathmandu. Intern
was provided with an opportunity to understand all the functionalities of the bank,
especially all those performed in that branch except handling cash. Intern had several
departments to work for and learn the specific importance and working pedagogy of
each department during the short eight weeks period. Intern was placed in various
departments like Customer Service Department (CSD), Electronic Cheque Clearing
(ECC), Remittance Department, and Pension Department.

Department Placed Supervisors

Customer Service Department Mrs. Archana Satyal
Remittance and Clearing Department Mrs. Srijana Singh
Pension Department Mrs. Ujjwala Tuladhar and Mr. Mahesh
Darlami

Table 1.1: Department Placed and Supervisors

1.3.4 Duration

The duration of internship has been defined for 2 months at the organization by
Pokhara University (P.U.), Faculty of Management (FOM). So, in order to fulfill this
requirement, an internship was done for two months starting from 26 th of Poush to
26th of Falgun 2073 from 10:00 am to 4:00 pm during Poush and Magh, and from
10:00 am to 5:00 pm during Falgun.

The duration of interns work in each department is presented below:

Table 1.1: Division of Weeks and Activities Performed

S.No Department Duration (in weeks)
1 Customer Service Department 2
2 Remittance and Clearing Department 3
3 Pension Department 3

4
 1.3.4 Activities performed in different departments

As intern is provided in different departments, various activities are performed related

with CSD, Remittance and Clearing Department, and Pension Department. Synopses
of activities performed in different departments are given below:

Customer Service Department (CSD):

Dealing with customers.

Preparing Cheque book.

Printing Statement

Taking the forms for verification.

Checking customers transaction and balance request.

Informing the customers incase their ATM card has arrived.

Accepting different documents that arrive and entering them in the

register.

Taking the documents arrived to the concerned department.

Filing the forms as per the name of the product.

Distribution of various forms such as e-banking, SMS banking, pay

bill, etc.

Helping customer in filling the forms.

Remittance and Clearing Department:

The following activities are related with this department:

Handling customer queries about remittance service.

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 Providing, collecting, and checking web remit receipt and sending forms.

Collecting cheques for clearance and registering it in clearing register.

Prepare draft vouchers, commission vouchers with respective account and

customer name.

Pension Department:

The following activities were performed under this department:

Renewal of pension patta of different customers.

Pension payment to retired TU(Tribhuvan University) teachers and staffs,

retired employees of NBL, and

1.4 Importance of the Study

It helps to add job experience in resume.

It provides how to analyze Strength, Weakness, Opportunity and Threat of the

organization.

It helps how to deal with client when they come at bank.

It helps to get practical knowledge.

Get the opportunities to work in different department such as Currencies, Treasury,

Reconciliation, SWIFT Operation and Remittance.

1.5 Limitation of the Study

The study is conducted with the following limitations:

Time and resources constraints are other limitation of the study.

6
 As the internship was to complete within the limited time period it was impossible to
have in depth study of all the activities of all the departments.

Busy schedule of organizations staff.

This report is mainly based on of the practical knowledge gained during the intern
period and theoretical knowledge that has been previously studied.

Analysis is mainly based on primary as well as secondary data such as the published
documents of Nepal Rastra Bank and other commercial banks, money transfer
companies and the interviews of the personnel. The published documents and the
personal information have their own limitations.

Due to the confidentiality maintain by the bank, information regarding customers and
clients was not available in detail.

7
 CHAPTER TWO

Introduction of the Banking Industry

2.1 Meaning of Bank

The term bank is derived from the Latin word bancus, Italian word banca and
French word banque all of which mean a bench. At ancient times there used to be
some moneylenders who sat in the bench for keeping, lending and exchanging of
money in the market place. That was the origin of commercial bank.

The origin of commercial bank can hence be traced back to the early times of human
history. As early as 2000 BC some people had developed a system of banking in
Babylonia. In ancient Greece and Rome, the practice of granting credit was widely
prevalent. At the same time, some rich people used to practice storing of precious
metals and coins at safe places and loaning out money for public and private purposes
on interest.

According to Crowther, modern banking has three ancestors. They are the merchants,
goldsmiths and moneylenders.

The merchants or traders are entitled as the ancestors of the bank. As trading require
remittance of money from one place to another it involved the theft of metallic coins
during transportation. So traders in those days began to issue documents which were
taken as title of money. This gave rise to hundi which is the letter of transfer of
money. It included the direction from one banker to another to pay the bearer of hundi
the specified amount of money and debit the amount against the drawer. Thus in this
way merchant banker form the earliest stage in the evolution of modern banking.

The goldsmiths dealt with precious metals. In the period when money consisted of
gold and silver, people largely, because of the danger of theft, started leaving their
precious money in the custody of goldsmiths. As the practice of safeguarding others
money became widespread, the goldsmiths became in charge for the safekeeping
service.

8
 Performing the safekeeping duty, goldsmiths issued the receipt for deposits to the
customer. Later such receipt for deposits with the goldsmiths began to be used as a
means of payment. Then people started keeping gold, silver, and coins with
goldsmiths in exchange for receipts, which is called goldsmith note. It is the writer
claims against the deposits. These receipts became a good medium of exchange and a
means of payment.

The next step in the development of banking arose when the goldsmiths became the
moneylender. This development was based on the goldsmiths discovery that it was
not necessary to hold hundred percent of the coins deposited with them. The
goldsmiths soon realized that, on average, daily withdrawals were equal to daily
deposits and only a contingency reserve was required for the period when withdrawals
exceeded deposits. After keeping the contingency reserve, the goldsmiths loaned out
the remaining deposits on interest. In this way, the system of fractional reserve
banking was born. Thus, goldsmith becomes a banker. They started to perform the
two major functions of a bank:

Receiving deposits

Advancing loans

During the above discussed period, private individuals did the banking business. As
public enterprise, banking made its appearance in Italy in 1157 AD when the Bank of
Venice was established. History shows the existence of the Monte in Florence in
1336. The meaning of Monte is given in the Italian dictionary as a standing bank.
During early 1349, the shopkeeper of Barcelona carried on the banking business.
Meanwhile, the local government restricted the shopkeepers to operate this business
they had given sufficient security. During 1401, a public bank was established in
Barcelona. It used to exchange money, receive deposits and discount bills of
exchange.

The bank of Amsterdam was established in 1609 to meet the needs of the merchants
of the city. It accepted all kinds of precious metals, coins and currencies on deposits.
These deposits could be withdrawn on demand. The facility of transferring the
deposits from one account to another was also available there. The bank also provided

9
the certificate of the deposits to withdraw within six months. Later, this came to be
used in the same manner as the modern check.

The beginning of the English banking may correctly be attributed to the London
Goldsmiths. They marked a turning point in the history of English banking and lead to
the growth of private banking with the establishment of the Bank of England in
1694. Many of todays banking services were practiced in ancient Lydia, Phoenicia,
China, and Greece, where trade and commerce flourished. The temple in Babylonia
made loans from their treasuries as early as 2000BC. The temples of ancient Greece
served as safe-deposit vaults for the valuables of worshippers. The Greeks also coined
money and developed a system of credit. The Roman Empire had a highly developed
banking system, and its bankers accepted deposits of money, made loans, and
purchased mortgages. Shortly after the fall of Rome in 476 AD, banking declined in
Europe.

The increase of trade in 13th century Italy prompted the revival of banking. The
moneychangers of Italian states developed facilities for exchanging local and foreign
currency. Soon merchants demanded for other services, such as lending money and
gradually banking services were expanded.

The first bank to offer most of the basic banking functions known today was the Bank
of Barcelona in Spain. Founded by merchants in 1401, this bank held deposits,
exchanged currencies, and carried out lending operations. This bank is also believed
to have introduced the bank check. Three other early banks that were managed by a
committee of city officials were the Bank of Amsterdam (1609), the Bank of Venice
(1587), and the bank of Hamburg (1619). These institutions laid the foundation for
modern banks of deposits and transaction.

For more than 300 years, banking on the European continent was in the hands of
powerful statesman and wealthy private banker, such as the Medici family in Florence
and the Fuggers in Germany. During the 19th century, members of the Rothschild
family became the most influential bankers in all Europe and probably in the world.
This international banking family was founded by German financier Mayer Amschel
Rothschild [1743-82], but soon spread to all the major European financial capitals.

10
The Bank of France was organized in 1800 by Napoleon. The bank had become the
dominant financial institution in France by the mid-1800s .in Germany; banking
experienced a rapid development about the middle of the 19th century with the
establishment of several issuing, or publicly owned banks.

Banking in the British Isles originated in with the London goldsmiths of the 16th
century. These men made loans and held valuables for safekeeping. By the 17th
century English goldsmiths created the model for todays modern fractional reserve
banking- that is, the practice of keeping a fraction of depositors money in reserve
while extending the remainder to burrowers in the form of loans. Customers deposited
gold and silver with the goldsmiths for safekeeping and were given deposit receipts
verifying their ownership of the gold. These receipts could be used as money as they
were backed by gold. But the goldsmiths soon discovered that they could take a
chance and issue additional receipts against the other people who needed to borrow
money. This worked as long as the original depositors did not withdraw all their gold
at one time. Hence, the amount of receipts or claims on the gold frequently exceeded
the actual amount of the gold, and the idea that bankers could create money.

In early India, the religious book namely Manu contains references regarding
deposits, pledges, policy of loan and the rates of interest. The banking service in those
days largely meant only money lending as the complicated mechanism of modern
banking was not known to people then.

2.2 Evolution of Banking Industry in Nepal

The history of modern commercial banking industry dates back to 1937 AD in which
Nepal Bank Limited was incorporated. The government owned 51 percent of the
shares in the bank and controlled its operations to a large extent. It was headquartered
in Kathmandu and had branches in other parts of the country as well.

In order to regulate the economy and the unregulated use of money Nepal Rastra
Bank was created in 1956 as the central bank. Its function was to supervise
commercial banks and to guide the basic monetary policy of the nation. Its major aims
were to regulate the issue of paper money; secure countrywide circulation of Nepalese

11
currency and achieve stability in its exchange rates; mobilize capital for economic
development and for trade and industry growth; develop the banking system in the
country, thereby ensuring the existence of banking facilities; and maintain the
economic interests of the general public. Nepal Rastra Bank also was to oversee
foreign exchange rates and foreign exchange reserves.

After almost 30 years another state owned commercial bank Rastriya Banijya Bank
(National Commercial Bank, was established in 1966. The Land Reform Savings
Corporation was also established in the same year to deal with finances related to land
reforms. During 1967AD the Agricultural Development Bank was also established.
Almost 75 percent of the bank was state-owned; 21 percent was owned by the Nepal
Rastra Bank and 5 percent by cooperatives and private individuals. Hence it is clear
that since the 1960s; both commercial and specialized banks have expanded. More
businesses and households had better access to the credit market although the credit
market had not expanded.

However, the decade of 1980s can be considered as the landmark in the modern
banking history for Nepal. It was only in this decade government allowed the excess
to foreign joint venture banks to be the part of the Nepalese banking business. During
this period, three foreign commercial banks opened branches in Nepal. The first was
Nepal Arab Bank established in 1984 AD. It was co-owned by the Emirates Bank
International Limited (Dubai), the Nepalese government, and the Nepalese public.
After that in 1984 came Nepal Indosuez Bank (currently Nepal Investment Bank)
which was jointly owned by the Credit Agricole Indosuez, Rastriya Banijya Bank,
Rastriya Beema Sansthan (National Insurance Corporation), and the Nepalese public.
Then Nepal Grindlays Bank was the third foreign joint venture to be established in
Nepal which was co-owned by a British firm called Grindlays Bank, local financial
interests, and the Nepalese public.

Although government had started the liberalization of financial sector during the
decade of 80s but this process speeded up only in early 1990s. In fact private sector
rushed into the banking and financial industry after the restoration of democracy in
1990. Many commercial banks like Himalayan Bank, Everest bank, etc were
established during this decade. Now, there are 28 commercial banks running
successfully in Nepal.

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2.3 Types of Banks

With the ever changing needs of the people, thereafter, industrial, commercial and
scientific revolutions, the banking system developed and extended. When a single
performs multiple tasks, the efficiency and effectiveness of the work becomes weak.
Hence different banks are established for the different purposes depending on the
nature of the bank. Basically, the banks have been categorized in various types in
accordance with the banks ultimate purpose, customers demands and choices, and
overall economic development of the nation. Broadly, the banks can be classified into
the following types depending on its nature:

Central Banks usually controls policy and may be the lender of last resort in
the event of crisis. They are often charged with controlling the money
supplies, including printing paper money.

Development Banks are established to provide capital and technological

assistance for the development of infrastructure of the country

Commercial Banks primarily lend to business i.e. corporate banking. They

perform intermediary role by accepting deposits from saving units under
various accounts and lending money to needy deficit units.

Finance Companies provide loans to the risky customers whom commercial

banks find too risky to provide loan. They are the engineers of risk. They
convert risk into potential business opportunities.

Micro-finance companies is a source of financial services for entrepreneurs

and small businesses lacking access to banking and related services. The two
main mechanisms for the delivery of financial services to such clients are: (1)
relationship-based banking for individual entrepreneurs and small businesses;
and (2) group-based models, where several entrepreneurs come together to
apply for loans and other services as a group.

Table 2.1: Categories of Financial Institutions in Nepal

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S. No. Types of Financial Institutions Class Number

1 Commercial Banks A 28

2 Development Banks B 54 2.4

3 Finance Companies C 38

4 Micro-Credit Development Banks D 45

Total 165
Commercial Banking in Nepal

The Commercial bank is the oldest form of bank. In general, bank that performs all
kinds of banking business and generally finances and commerce is called commercial
bank. It occupies quite an important place in the framework of every economy. The
commercial banks are those banks, which pool together the scattered savings of the
community and arrange for their productive use and generate profit. They accept
deposits from the public and use the money to help the community by making loans to
individuals, organizations, governments and business. Commercial banks, acquire
funds from one group of surplus spending units and making these funds available to
other deficit units facilitating the effective mobilization of resources, which in turn
leads to sound economic growth of the country.

The main aim of a commercial bank is to earn profit like any other business entity. it
lends a certain percentage of the cash lying in deposits on higher interest rate than it
pays on such deposits. The difference of interest on deposits received and loans
advanced are the main source of its income. Thus commercial banks are merely a
business firm engaged in financial intermediation as well as perform additional
functions under strict supervision and control of the central bank.

In the context of Nepal the first Commercial bank, Nepal Bank Limited was
established in 1937 A.D. and the second Rastriya Banijya Bank was established in
1966 A.D. Nepal has opened its door to foreign commercial banks in the kingdom
almost a decade back. As the country followed economic liberalization, there was
massive entrance of foreign banks in Nepal. Consequently, Nepal Arab Bank was

14
established in1985 A.D. similarly the Nepal Indosuez Bank was established as a joint
venture between Nepal and France in1986 A.D. the legitimate entry of foreign
commercial banks with full-fledged banking functions led to rapid growth of banking
system after 1990 economic liberalization policy obtained by the government. In
Nepal there are operating 28 commercial banks at present, which in shown table
below:

1. Siddhartha Bank Limited

2. Nepal Bank Limited

3. Rastriya Banijya Bank Limited

4. Agriculture Development Bank Limited

5. Nabil Bank Limited

6. Nepal Investment Bank Limited

7. Standard Chartered Bank Nepal Limited

8. Himalayan Bank Limited

9. Nepal SBI Bank

10. Nepal Bangladesh Bank Limited

11. Everest Bank Limited

12. Bank of Kathmandu Lumbini Limited

13. Nepal Credit and Commerce Bank Limited

14. Kumari Bank Limited

15. Laxmi Bank Limited

16. Global IME Bank Limited

15
 17. Citizens Bank International Limited

18. Prime Commercial Bank Limited

19. Sunrise Bank Limited

20. NMB Bank Nepal Limited

21. NIC Asia Bank Limited

22. Machhapuchchhre Bank Limited

23. Mega Bank Nepal Limited

24. Civil Bank Limited

25. Century Bank Limited

26. Sanima Bank Limited

27. Janata Bank Nepal Limited

28. Prabhu Bank Limited

The table below shows the trend in which the commercial banks of Nepal have been
grown since last two decades:

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Year No of commercial Banks
1980 2
1985 3
1990 5
1995 10
2000 13
2005 17
2006 19
2007 20
2008 25
2009 26
2010 29
2011 31
2012 32
2013 31
2014 30
2015 30
2016 28
2017 28

Table 2.3: Growth of banks in Nepal

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 CHAPTER THREE

Introduction of Nepal Bank Limited

3.1 Introduction

Nepal Bank Limited, The first bank of Nepal was established in November 15, 1937
A.D (Kartik, 30, 1994). It was formed under the principle of Joint venture (Joint
venture between govt. & general public). NBL's authorized capital was Rs. 10 million
& issued capital Rs. 2.5 million of which paid-up capital was Rs. 842 thousand with
10 shareholders.

The bank has been providing banking through its branch offices in the different
geographical locations of the country. Nepal Bank Limited is the oldest commercial
bank of Nepal. It was established before 73 years ago which marked the beginning of
an era of formal banking in Nepal. The Bank is also one of the largest in Nepal with
114 branches in the 55 districts of the country.

Despite being the oldest and one of the largest banks of Nepal, the bank suffered
massive difficulty in terms of unpaid loan and felling profits. Thus the Bank was put
under the control of Nepal Rastra Bank, the central bank of Nepal which hired
services of Bank of Scotland (Ireland), ICC Consulting from 2002 for the
management of the bank for an initial period of 2 years.

3.2 Vision

To remain the leading financial institution of the country

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 a sound institution
where depositors continue to have faith in the security of their funds and receive
reasonable returns; borrowers are assured of appropriate credit facilities at reasonable

18
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.

3.4 Objectives

Nepal Bank Limited has the following objectives:

Focus on building the positive net worth and meeting minimum capital
requirement over the coming five years.

Focus on increasing the customer base and market share.

Maximize the potential/efficiency of bank's staff.

Focus on minimizing the risk associated with the business.

Focus on providing the world class business solutions.

Focus on increasing the sustainable profit.

3.5 Values Statement: SPIRIT

Segmented business approach: For risk management and enhancement of efficiency

Partnership: With all stakeholders including the Government, employees,

shareholders and customer

Innovation: Of business areas and processes for providing Advanced banking

services, and enhance competitiveness

Responsiveness: responding to the changing need of the market/society/business on

timely basis

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Integrity: Uphold trustworthiness and business ethics in the business process

Total banking solutions: To cater the need of all sections of society

Corporate Vision

"Pioneer Bank with complete banking solution"

3.6 Mission Statement

Network for inclusion: Use bank's network to increase its reach all over the country
from urban areas to rural areas and help in improving the lifestyle of rural population
and in turn become the bank of choice of corporate, medium businesses and rural
market.

Enhancing the value: To employees, shareholders, government and customers.

World class banking services: Provide world class banking services by achieving
excellence in customer service and adopting high level technology standards.

3.7 Network Overview

Region wise branches No of Branches

Kathmandu Region 29

Biratnagar Region 33

Birgunj Region 24

Pokhara Region 22

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 Nepalgunj Region 18

Total no of Branches* 126

3.8 Shareholding Composition

S.N Ownership Percent

1 Government of Nepal 62.21

2 General Public 37.79

Total 100

3.9 Organizational Structure

The following figure explains the organization structure of NBL:

21
 Figure 3.1: Organizational structure of NBL

3.10 Product and Services

1. Deposits

2. Loans and Advances

3. Remittance

4. Other services

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3.10.1 Deposits

Like any other bank, Nepal Bank accepts deposit from individuals, business
organizations and other institutions. It offers the following product and services to its
customers.

Current account: Nepal Bank's current account saves you the hassle of
carrying around cash every month. The account is non-interest bearing and it
comes with a cheque-book - you just need to write a cheque whenever and
wherever it's convenient.

Statement of Transactions

A six monthly statement will be sent so that you can see your transaction
movements. You can also request that the Bank provides you with a statement
every day, every week, every 15 days or every month.

Your Account and Cheque Book

A current account can be opened with a minimum amount decided by the

specific branch. Deposit at your home branch. Once your account is opened
you will receive your cheque-book containing 10 personalized cheques. To
replace your cheque book once you run out of cheques just present the
replacement form at the back of your current cheque book at your home
branch and we will arrange a new one for you.

Our Officers will be happy to help you so that you can start to maximize the
benefits of a Nepal Bank current account immediately.

Account Opening

You will need to bring:

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 Personal Account:

a. Personal Identification (Citizenship Certificate and 2 Copies of

Photograph)

b. Nominee Declaration

Proprietorship Account:

a. Declaration of sole proprietorship

b. Copy of Registration Certificate

Partnership Account

a. Letter of Partnership duly signed by all partners

b. Copy of the Partnership Agreement

c. Certified copy of Partnership Registration

Account of corporate bodies, copy of:

a. Memorandum and Article of Association of the Company

b. Resolution of Board of Directors to open and operate an account

c. List of directors duly signed by respective directors with home address

and phone numbers

d. Certificate of commence of commencement of business

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

certified by the charity):

a. List of Office Bearers

b. Copy of by-laws

c. Copy of Resolution to pen and operate the account

24
 d. Name and signature of persons authorized to operate the account

e. Copy of the registration certificate

Saving Account

With Nepal Bank's saving account your interest is calculated on daily balance
and credited to your account quarterly. It is your passport to other Nepal
Bank's products and services designed to manage your daily life easier and
more convenient. Initial deposit depends upon nature of saving account. Any
balance below minimum amount will be liable to incidental charges as fixed
by the bank from time to time.

Transaction Record For Thumb Print Account

When you open your account you will get a passbook to keep track of your
savings and transactions. You have to update your passbook by our bank staff
at our branch.

Types of Saving Account

Karmachari Sahuliyat Saving Account:

a. Can be operated on Zero Balance

b. 2% interest on daily balance

c. Free Services like: ATM, ABB, SMS, Internet Banking

d. Automatic conversion to Karmachari Nibritabharan (Employee

Retirement) Account once the employee is retired from service.

e. Account transfer facility if the employee is transfered to another

location and no account closing charge.

25
 Karmachari Nibritabharan (Employee Retirement) Saving Account:

a. Requirement of Pension Passport to open account.

b. Can be operated on Zero Balance.

c. 5% interest on daily balance.

d. Cash or Transfere facility to pension amount.

e. Free Services like: ATM, ABB, SMS, Internet Banking.

f. Account transfer facility.

NBL Bishes Bachat Khata:

a. Minimum balance is 50,000 only.

b. 5% interest on daily balance.

c. Free Services like: ATM, ABB, SMS, Internet Banking.

Nepa Laxmi Bishes Bachat Khata:

a. Minimum balance is 100,000 only.

b. 7% interest on daily balance.

c. Free Services like: ATM, ABB, SMS, Internet Banking.

d. Insurance facility up to 100,000.

Account Opening

You will need to bring:

Personal Account:

a. Personal Identification (Citizenship Certificate and 2 Copies of

Photograph)

26
 b. Nominee Declaration

Proprietorship Account:

a. Declaration of sole proprietorship

b. Copy of Registration Certificate

Partnership Account

a. Letter of Partnership duly signed by all partners

b. Copy of the Partnership Agreement

c. Certified copy of Partnership Registration

Fixed Account

Features

Fixed Deposit can be opened with a minimum balance of NRs.

Payable upon maturity

Penal interest is levied on withdrawal of FD prior to maturity.

Interest is payable Quarterly.

Tax is deducted at source from the interest on saving deposit as per the Income
Tax Act, 2058(2001).

Nomination facility is available.

Strict confidentiality is assured.

Tenure of FD

27
 3 months

6 months

9 months

1 year

2 years

Above 2 years

Prevailing Interest Rate (Per Annum): 6 months

3 months

6 months

9 months

1 year

2 year

Above 2 year

* It is subject to change as per the market condition.

Eligibility:

Individuals.

Minors.

Trusts.

Associations.

28
 Clubs.

Societies.

Documents :
The copy of the following certified documents has to be submitted while requesting
for opening of Account
Personal Account :

Identification Card in the form of Citizenship

Certificate/Passport/Other ID/PAN Card

Minors:
Guardianship to be verified with related documents

Nominees form:

Photograph of the nominee

Signature of the nominee

Clubs/Societies and Association:

Copy of Registration Certificate

Copy of Bye-Laws

Copy of Resolution to Open and Operate the account

List of members

Corporate body:

29
 Certificate of Incorporation

Memorandum and Article of Association of the Company

Resolution of Board of Directors to Open and Operate the account

Sample of Company Seal

Name of the Directors of the Board

Partnership Account:

Certificate of Partnership Registration

Copy of Partnership deed, if any

Proprietorship Account:

Registration Certificate

Identification of Proprietors

3.10.2 Loans and Advances

Corporate loans: SME loan is aimed at meeting the financial ambitions of small and
medium businesses. It is disbursed to meet the working capital as well as fixed term
requirement of the applicant.

Consumer loans: It is a type of loan which is provided by the NBL to the general
people against the some collateral. It includes the following:

30
 Personal loans: It is a flexible loan disbursed for the borrowers social, personal or
business purposes in order to fulfill all personal and business financial requirements.

Eligibility:

Borrower must have regular and stable source of income

Borrower must be Nepalese citizen

The collateral must be accessible by at least eight feet wide road

Borrower must have experience of at least 3 years

Borrower must be 21 years of age and should not exceed 60 at the time of
maturity of loan.

The retirement age must be more than the tenure of the loan.

Auto loans: It is the loan provided to finance the purchase of vehicles used for both
consumer and commercial purposes. It has various provisions to provide this type of
loan.

Eligibility:

The criterion for taking auto-loans is as follows.

The loan is provided to Nepalese Citizens only.

This loan shall be provided other than insider.

31
 The loan is provided to any salaried and self-employed individuals and
companies having regular and stable source of income.

The company / firm should be registered to the government authority.

All borrowers and guarantors should not be enlisted in Black List of NRB.

In case of individuals, the borrower must be at least 21years and should not
exceed 60 years at the time of maturity. The retirement age must be more than the
tenure of the loan.

3 years work experience is needed for salaried individuals.

The company / firm should be in operation since last three years.

The person taking loan for the company / firm is to be authorized by the
company / firm as appropriate.

Parameters:

Maximum Loan
Rs. 25,00,000
Amount

Minimum Loan
Rs. 2,00,000
Amount

Private (Personal Private (Business

Private (Used)
Use) Use)
Loan portion
Up to 80% of Up to 80% of Up to 70% of
quotation price quotation price valuation price

32
 Tenure Minimum 2 Years - Maximum 7 Years

Home loans: NBL Bank provides Ghar Karja to individuals for the purpose of
constructing or purchasing homes. The loan can be both for short and long term as per
the requirement of the customer.

Eligibility:

The criterion for taking home-loans is as follows.

The loan is provided to any individuals who have regular and stable source of
income. This loan can be given to any salaried and self-employed individuals.

The loan will be provided to Nepalese Citizens only.

Any house/land, which does not lie in municipal area, will not be financed.
However, urban VDC can also be considered with proper justificantion.

The land and/or house to be constructed / purchased / renovated / extended /

modified should have motorable road (8 feet wide in minimum) access. Such road
should be clearly seen in the blue print or be verified by concerned authority (for
e.g. ward office).

All borrowers and guarantor should not be enlisted in Black List of Nepal
Rastra Bank.

3 years work experience is needed for salaried and self-employed individuals.

In case of business income, financial statement of the company should be

audited.

The borrower must be at least 21years and should not exceed 60 years at the
time of maturity. The retirement age must be more than the tenure of the loan.

33
Parameters:

Maximum
Loan Rs. 50,00,000
Amount

Renovation,
Construction of building
Purchase of Land / modification,
on already
Building extension of
owned/Purchased land
Building

Minimum
Loan Rs. 4,00,000 Rs. 2,00,000 Rs. 4,00,000
Amount

Loan Up to 60% of Transfer Up to 70% of cost Up to 70% of cost of

portion deed (Rajinama) price of construction construction estimated
or value estimated by estimated by by valuator approved by
valuator approved by valuator approved the bank
the bank whichever is by the bank
lower

For land: Up to 60%

of transfer deed
(Rajinama) price or
value estimated by
valuator approved by
the bank whichever is

34
 lower.

Tenure Minimum 2 years - Maximum 20 years

NBL Margin Lending

This loan is provided against the shares of the companies, which are listed in
Nepal Stock Exchange (NEPSE) and acceptable to the bank. The companies
whose shares are eligible for NBL Margin Lending are:
Commercial Banks

Nabil Bank Ltd.

Nepal Investment Bank Ltd.

Standard Chartered Bank Ltd

Himalayan Bank Ltd.

Everest Bank Ltd.

Bank of Kathmandu

Nepal SBI Bank Ltd.

NIC Bank Ltd.

DCBL Bank Ltd.

Citizen Bank International Ltd.

Kumari Bank Limited

Laxmi Bank Limited

35
 Prime Commercial Bank Limited

Siddhartha Bank Limited

Manufacturing and Processing

Bottlers Nepal Ltd. (Balaju)

Bottlers Nepal (Terai) Ltd.

Unilever Nepal Ltd.

Hotels

Soaltee Hotel Ltd.

Hydropower

Chilime Hydropower Company Ltd.

Butwal Power Company Ltd.

Arun Valley Hydropower Company Ltd.

Trading

Bishal Bazaar Co. Ltd.

Finance Companies

Narayani National Finance Co. Ltd.

Annapurna Finance Co. Ltd.

36
 Yeti Finance Company Ltd.

Nepal Housing and Merchant Finance Company Ltd.

Mahalaxmi Finance Ltd.

Laitpur Finance Ltd.

Pokhara Finance Ltd.

Nepal Merchant Bank & Finance Company Ltd.

Development Bank

Ace Development Bank Ltd.

Telecommunication

Nepal Doorsanchar Company Ltd.

Insurance Companies

Sagarmatha Insurance Company Ltd.

National Life Insurance Company Ltd.

Eligibility:
Any individual, companies, and firms can take this loan. But, all the borrowers should
be Nepalese citizen. This loan can be taken against the shares owned by any person or
company.

Contact: Any branches of NBL.

Parameters:

37
 Maximum Loan
Up to single obligor limit
Amount

Minimum Loan
NRs. 5,00,000
Amount

The draw down is restricted to stipulated as mentioned by

Draw Down
bank on time to time.

Pledge over the shares and lien of right shares, dividends

Security
and bonus shares

Management fee: 0.50% of the loan amount or Rs 3000 whichever is higher upon
approval of the loan.

Documents Required:

For individual

Copy of citizenship certificate of the borrower and other owners of the shares.

Personal Guarantee of coheirs of the borrower.

For All

Loan application form duly filled and signed.

Original share certificates.

Letter of consent issued by the borrower addressed to the concerned

companies for the pledge of shares with NBL.

Letter of consent from Borrower to the concerned company for the lien over
shares in favor of NBL and accretion (Dividend, Bonus shares, Right shares).

38
For firm / partnership / company

Firm Registration Certificate.

PAN Certificate.

Partnership deed (in case of partnership firm only).

Memorandum of Association and Articles of Association (in case of

company).

By-laws and articles (in case of association/trust).

Resolution of Board/Executive Committee for obtaining the loan (in case of

company/association/trust).

Power of attorney for signing the loan application and security documents (in
case of company/association).

Personal guarantee of shareholders holding 10% of total shares or more (in

case of company).

3.10.3 Remittance

NBL Web Remit: NBL Remit - an online/internet based Remittance Service for the
purpose of facilitating to transfer the earnings of Nepalese and Nepalese Expatriates
in foreign countries with the help of available NBL agents. Along with inward
remittance from foreign countries, NBL-remit is powered by domestic money transfer
facility through all of the bank's branches throughout the country with very minimal
charge.

39
NBL Remit service is based on online data transfer system and it is instant enough,
efficient and very much secure. For the authentication purpose, SECRET KEY is
generated on the system, which is required by the customer while being paid.
Remittance facility is available both for instant cash payment and credit to the
beneficiary personal account. Now the account transfer facility can be availed within
NBL branches.

NBL Remit Service is also operated by agents of Nepal Bank who exist in different
locations of National and International Topography. At this time, NBL has started this
service from Arabian and Parsian Gulf mainly from QATAR where NBL has an
established drawing arrangement with two major exchange houses, which are:

Eastern Exchange Est. Doha, Qatar

Arabain Exchange Co. W.L.L.

NBL Remittance Products:

The oldest, biggest and most trusted bank in Nepal, Nepal Bank Limited has
largest network of branches in the country and very big network of correspondent
and agency relationship all over the world. The business of remittance fund
transfer into Nepal, from Nepal and within Nepal through this bank is most
reliable, timely at the minimum of charges.

A) Inward Remittance (receiving of money in Nepal)

1. SWIFT: Through this system the remitter anywhere in the world can remit
or transfer the fund in Nepal very easily, securely and quickly. The remitter
can transfer the money in Nepal through Nepal Bank Limited just by
mentioning this bank's SWIFT identity, that is, NEBLNPKA and
beneficiary details. The widest network of branches of this bank can take
care of your need very efficiently and at the minimum of cost

40
 2. TT and Mail transfer: we have arrangement made with major banks in
financial centers as well as with banks in neighboring counties to receive
funds through tested telegraphically transferred funds. We also honor the
mail transfer from major banks.

3. Drafts: We have system of honoring drafts drawn on us by many banks

denominated in major currencies such as USD, Euro, GBP.

4. Remittance from Gulf Countries: We have maintained special

relationship with banks, financial institution and exchange houses in Gulf
countries where majority of Nepali workers are working so that their hard
earned money can be received by family members in Nepal.

5. Western Union Money Transfer Service: Due to the arrangement made

by our bank with this fund transferring institution through Hulas
Remittance, the beneficiary in Nepal can receive money very quickly and
the beneficiary does not need any account to receive the fund.

6. Remittance from India: We have arrangement made with many banks in

India by which remitter in India can remit the fund through SWIFT, TT,
Mail Transfer, Drafts etc.

All remittance into Nepal through Nepal Bank Limited is quick, dependable and
cheap because the beneficiary anywhere in the Nepal can receive the money
without needing services of other banks because Nepal Bank Ltd has largest
network of branches in Nepal in important places.

B) Outward Remittance:

1. SWIFT: Through this System we can cater the need of customer to remit
the fund anywhere in the world, denominated in major currencies.

2. Draft: We have draft drawing arrangement made with our correspondent

banks in many countries of the world where Nepalese individual and

41
 institution need to transfer fund due to any reason.

3. TT and Mail Transfer: Because of our international banking relationship

we can handle the outward remittance business though this method.

4. Remittance to India: We can cater the need of business community and

individuals to transfer the fund denominated in Indian Rupee In India very
efficiently and at the minimum of commission compared to any bank in
the Nepal.

Essential details for SWIFT remittance to Nepal (from any country / bank)

Nepal Bank's SWIFT Code

NEBLNPKA
for remittance to Nepal

Please give full detail of Bank, Branch and its

Account with Institutions: complete postal address, where the beneficiary is
maintaining account

Please give account number, name, address and

Beneficiary Customer
phone / fax number (if available) of the beneficiary

42
 3.10.4 Other Services

Safe deposit vaults: In this service, the bank valuable ornament and other valuable to
its locker box very safely. For storing those valuable things charge a fixed amount
semi-annually. Against that the bank provides the security to these goods.

Trade finance: To facilitates the trading activities generally with the inter country
transaction the bank helps the concerned party issuing the L/C. The Bank offers to
finance various export requirements such as pre-shipment loan and post-shipment
loan, documents negotiation/documentary bill purchase etc.

SMS Banking: This is one of the high-tech as well as exiting services provided by
the Nepal bank limited. Under this service the customer of Nepal bank limited bank
can check their balance and other information from their mobile by sending SMS to
bank.

Any Branch Banking Service: In this type of service of bank, the bank provides the
service to check the balance and withdraw the money from any branch of the bank
thought the country. Even they can check their balance amount from any branch.

Internet Banking: This is another type of service added to its valuable customer so
that they can check their balance, transfer fund as well as many more services through
the internet network.

43
 Debit Card: Updating with technology and providing the exiting features is one of
the features of NBL bank. To continue this culture it provides the debit cards to its
customer by associated with the SCT network. The people who have account in NBL
at any branch can withdraw from any ATM location.

44
 CHAPTER FOUR

Report on Internship Activities

4.1 Reporting on Internship Activities

Being a part of Nepal Bank limited for two month as an Intern got great opportunity
to learn about the banking practices. As I started my intern in NBL, I familiarize
myself with the new environment and the activities going within the organization. It
helped me a lot to know about the banking terms and procedures. During my
internship period I presented myself with full zeal, confidence and well disciplined in
this institution. Working as a Trainee for 2 month, I was placed under the supervision
of Mrs. Srijana Singh, Mrs. Archana Satyal, Mrs. Ujjawala Tuladhar, Mr. Mahesh
Darlami and Mr. Niranjan Dhakal . I was able to work with an ease environment
where I was given the full support and, with their cooperation in the department. I
learned how the theoretical knowledge that we learn in college is practically applied.
At beginning it took time to learn and being familiar with the environment, but with
the kind cooperation and help from the seniors make it easy to me. The environment
was really motivating. As I am preparing the report on Central Finance Department
with reference with Finance Department lets start this section with the introduction of
Central Finance Department.

ANALYSIS OF ACTIVITIES DONE AND PROBLEM SOLVED

During the eight-week period intern was placed in the various department to
accumulate an overall learning experience of the banking activities at various
departments. All department performed independent and highly identical activities all
aims at organizational goal achievement.

4.1.1 Customer Service Department

Customer service is the front desk of any organization, where customers make the
first contact with the bank. The image and reputation of the bank depend upon the
effective functioning of this department. Customer service is the process by which an

45
organization delivers its products and services to the customers. The staff deployed in
CSD should have a fair knowledge of banking so that they may be able to answer any
questions raised by the customers. Attracting the potential customers and retaining
the existing customers are intended by CSD.

Hence, all the activities of CSD are directed towards customer satisfaction. One thing
that is to be kept in mind is the finding new customer is much more expensive than
retaining existing one. Customer service is more than just keeping the customer
happy. But it is about revenue because a lost customer means loss of revenue and
incurred expenses in making a new customer and an unhappy customer can damage
the image and reputation of the business as a whole.

To sum up, CSD is the face of the bank. CSD is about how the organization delivers
its product or service. It is a link between customers and other departments of the
bank. It bridges between bank and customer. This unique feature makes CSD crucial
department of the bank.

4.1.2 Major Functions Performed at CSD

As described, the CSD is responsible to provide detailed information about the

product and services of the bank to meet customer need and to make banking more
convenient. The staff in the CSD must be capable enough to cope with every
environment and at the same time needs to have good communication and
interpersonal skills to build a good public relation. The major activities performed in
the CSD are shown below:

Figure 4.1: Major Functions of CSD

46
Above mentioned are the major functions that must be performed by the staff placed
in the CSD, similarly intern was also required to perform all this functionalities during
the placement period at CSD. Thus, activities performed at CSD can be presented in
the major categories as follows:

4.1.2.1 Customer Counseling

Understanding the need of customers and determining the purpose of the visit

Forwarding the customer to the concerned department as per their need

Providing suggestion about the suitable deposit product for the customer

Making the customer aware of the benefits and services available

Informing the customers about the minimum balance required and service charges.

Counseling about the various services provided by the banks and convincing about
the utility of such services

4.1.2.2 Account Operation:

It can be categorized into account opening and account closing as described below.

4.1.2.2.1 Account Opening

The activities involved in account opening are highlighted below:

Providing the account opening form along with the signature specimen
card

Verifying details in the account opening form by verbal queries with

customer

Cross matching details and forwarding the document for approval from the
supervisor.

47
 Opening the account in the system using NEWTON screen number
61100

Requesting the customer to deposit the amount by filling up the deposit slip

Photo and signature card scanning and entering into the software

4.1.2.2.2 Annual Deposit Rate:

The table below shows annual interest rate of various deposit schemes of NBL.

Table 4.1: Annual Interest Rates of Deposit Schemes at NBL

S.No. Deposit Type Rate Previous

Rate

1. Saving Deposit (Normal /Pension saving) 2.00% 2.25%

(interest calculated on daily closing balance

2. NBL Diamond Saving 3.00% 3.25%

3. Women Special Saving 3.00% 3.25%

4. Yuva Bachat Khata 3.00% 3.25%

5. Senior Citizens Special Saving 3.00% 3.25%

6. Professional's Saving 3.25% 3.50%

7. NBL Special Saving @ 3.25% 3.50%

8. Staff Saving / Staff Pension Saving 3.25% 3.50%

4.1.2.2.3 Requirement to Open New Account:

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

48
For Personal Account:

Personal Identification ( Citizenship Certificate and 2 copies of photography/ 3 if

the person is illiterate)

Nominee Declaration (If any).

Photocopy of receipt of payment bill of electricity or telephone or water or voting

ID or

For Partnership Account

Letter of Partnership duly signed by all partners

Copy of the Partnership duly signed by all partners

Copy of the Partnership Agreement

Certified copy of Partnership Registration

Account of Corporate Bodies, Copy of:

Memorandum and Articles of Association of the Company

Resolution of Board of directors to open and operate an account

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

Certificate of commerce of commencement of business

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

the charity)

List of Office Bearers

Copy of Resolution to open and operate the account

Name and signature of persons authorized to operate the account

Copy of the registration certificate

49
For Minors:

Guardianship to be verified with related documents:

Nominee Form:

Photography of the nominee

Signature of the nominee

For Clubs/Societies and Association:

Copy of Registration Certificate

Copy of By-laws

Copy of Resolution to Open and operate the account

List of members

For Partnership Account:

Certificate of Partnership Registration

Copy of Partnership Deed, if any

For Proprietorship Account:

Registration Certificate

Identification of Proprietors

4.1.2.4 Procedure of Account Opening

Whether it is the current account or saving account, it has followed certain procedure.
The procedures of both the accounts are moreover similar.

Filling up of account opening form with the specimen/signature card and KYC form.

50
 Verification of the form by checking whether each attribute required is properly
filled or not.

In the case of the current account, attributes are the name of the firm or individual,
PAN/VAT no, minute, the stamp of the firm, etc.

In the case of saving the account, attributes are the name of the individual,
citizenship no or license no etc.

Verification of the form and the documents by the senior authority.

Entry of the information into the newton against the screen no. 16110.

Obtain the registration number and enter in screen no. 300.

Obtain the account number. starting with2-10-.(saving a/c) Or2-11-

.(current a/c)

Generation of the account number by the system.

Communication of account number to the customers.

Filling deposit slip of balance required.

Record in the ledger book with required details.

4.1.2.2.5 Account Closing

The activities involved in account closing are described below:

Asking the customers about the reason for closing account and convincing the
customer not to close account as far as possible by suggesting the alternative services
available

If the customer is willing to close his account, then providing the account closing
form and getting it cleared from all the department without any objection

Informing the customer about the charges levied

51
 Collecting the belonging-related to account i.e. cheque book, ATM card, pass book if
any

Finally, the account is closed by handling the cash to the customer after debiting the
account closing charge.

Above described activities for account opening and closing, procedures can be shown
in the series of steps. It is shown in the figure below.

Figure 4.2 Procedures of Opening and Closing of an account

52
4.1.3 Distribution Activities

CSD performs distribution function in mainly three core area which is mentioned
below:

4.1.3.1 Account Statement

Account statements are asked by the customer to determine the transaction record. An
account statement provides only the account holder or to the bearer of the previously
issued account statement signed by the account holder. It is printed from screen no.
1450 in NEWTON.

4.1.3.2 Issuing Bank Certificate

Bank certificate is provided to an individual or a company if the person is going

abroad. The transactions and balance of the account holder are certified by the bank
for the concerned embassy. The balance certificate is the proof that the person has the
certain balance on the account of NBL. In the balance certificate, the Nepalese
currency which is available in the bank account of the respective customer is
converted to the currency where the customer is going. For example: if the customer
is going to Netherland then the Nepalese currency will be converted to the Euro
currency and this conversion is done according to the rate of NRB.

4.1.3.3 Cheque Book Distribution

Cheque books are strictly handed over to the account holder only after getting the
cheque disbursement register signed by the account holder, in person. However, the
cheque requisite slip can be collected for the bearer, not necessary the account holder.
Minimum balance required to issue a cheque book for saving account is rupees three
thousand and that for the current account or call account is rupees five thousand.

Procedure for Issuance of Cheque Book

A cheque book is issued for a new account and for existing account holder on requests
for new cheque book by submitting their cheque requisition. And the process
includes:

53
 The account holder should be present while receiving cheque book.

If the account holder is not able to present to collect the cheque s/he can assign the
agent by providing agents name and signature in requisition slip.

A number of leafs for the new account are provided as per the bank rule (10 leaves
initially) and for old account number of leafs are provided as per the customers
demand.

Once chequebook becomes ready need to make the entry in the chequebook issue
register.

Cheque book needs to be finally rechecked at the time of handing over to the
recipient.

Figure 4.3: Procedures in Cheque Distribution

54
Following are the series of steps carried out in Newton to print cheques:

enter 210 against screen number

Click on issue

Enter account number

Enter account type (i.e. saving, current)

Verify signature on demand slip with virtual signature card

If matched, enter no. of slips to be printed.

Paste or type the starting cheque number

Click on send

Confirmation code appears. Click on ok

Click on print

4.1.3.4 ATM Distribution

55
ATM card is considered to be highly confidential and secured for the banks
perspective. ATM cards are only handed over to the account holders only. It is
provided after confirming the receipt by signing the register and the application form.
It can be explained in a series of steps in figure 4.4 below.

Figure 4.4: Procedure for Issuing ATM Cards

4.1.4 Checking Balance

Many people come for the balance enquiry in the bank. Through CSD, account
holders are provided the information regarding their balances as well as the date of
deposit and withdrawal The NBL software facilitates to show the balance of the
respective branch only. This information is provided to the account holder only but if
in case the account holder is unable to come then his representative can know the
balance by bringing the application written by the account holder with his/her
signature if signature matches then only the information regarding balance will be
provided. Balance inquiry is obtained from screen number 250. In case customer
wants to inquiry balance of other branches, they need to visit counters (counters are
provided with ABBS facility.)

4.2 Safe Deposit Vaults:

56
The valuable ornament and other valuable to its locker box very safely. Safe deposit
vault provides protection for valuable commodities like jewels, medals, rare stamps
and negatives for important photos and valuable documents like insurance policies,
birth certificates, deeds, leases, contracts, bonds, CDs, etc. in the case of fire or theft.
Lockers are miscellaneous services provided for safety and security of important and
valuable items.

NBL provides various lockers of various prices that depend according to the size of
the locker. Only the authorized person can enter into the locker that is supported by
Code word given to the respective customer. It prohibits entry of unauthorized person
entering into the locker.

Activities performed under this department are highlighted below:

Registering date, time and signature in ledger according to application number

Finding key and opening locker according to locker number

Renewing locker for an expired date from account debiting the amount.

Checking balance in every account of customer to maintain minimal locker

amount(i.e. Rs10,000)

If below the minimal requirement, an information slip is pasted in the respective

ledger page of the applicant that can be noticed while signing before using the locker.

Making bills for locker payment

Posting rent payment into respective account books and register

Removing pages in ledger for the restricted applicants(as per government order for
corruption) to prohibit their entry

Passing vouchers

Rent payment debited from account is posted in required register and books

At the end of each day, debit and credit amount is totaled in the register book. If not
reconciled error is found to match the balance

57
4.3 Remittance Department

Remittance transfers help its customers to remit money from one place to another
through agents appointed by the bank. The people working outside the country can
send cash to their relatives through this service of the bank. It is a reliable service
which helps to send money from one place to another. Remittances contribute to
economic growth and to the livelihoods of needy people worldwide. Moreover,
remittance transfers can also promote access to financial services for the sender and
recipient, thereby increasing financial and social inclusion. Hence in the globalized
world this department has a vital role.

Activities performed in Remittance Department are highlighted below:

Provided clients with forms called 'Send Request Form when they needed to send
money to other places and Receive Request Form when they needed to receive
money sent from other places within the country (see annex I).

Debit vouchers were filled up when the client was to be paid received money, credit
vouchers to deposit money were filled when the client had to send money and double
entry vouchers were filled when the received remitted money was to be directly
deposited into the account.

The secret key was generated and provided to the sender of the money in the process
of sending money through banking software Newton.

Records of the transaction were kept in the remittance ledger book for reference.

In the case of inward remittance, Head Office 13 (17010113) account is debited and
customers account is credited reverse is done in the case of outward remittance.

At the end of the day, the debit amount must tally with payment amount recorded in
excel. Similarly, credit amount must match with the total incoming amount.

Helping customer fills up forms

58
 Entering the information into the system software

4.4 Problems Solved

Problems and organization are non-detachable terms. In performing day to day

activities of the organization, one needs to tackle with various problems and
challenges. While dealing with such problems, appropriate managerial skills need to
be used to solve the problem in the effective and efficient way. During the internship
period, the following problems were solved.

Problems related to the Wrong Information and Incomplete Information:

Most of the customers had to face the problems due to the wrong information
provided by other customers or due to the incomplete information. So, the major
responsibility of the employee is to handle those customers and solve their problem
by either providing the factual information or by providing the complete information
as per their peculiarity of the case.

Problems related to the Trapping of ATM Cards:

The ATM cards trapped in the other banks ATMs are collected in the CSD and they
are dispatched to the respective persons by verifying their identity. Also, customers
are helped to swap their card in a correct manner and change their pin codes.

Problem-related to the Change of Rules and Regulations:

The rules related to the operation of the banks, the interest rates, the charges are
revised time to time to cope with the dynamic environment, but the customers dont
easily accept the change. Hence, the employee should inform the customer about the
change, its need and relevance to the organization which is really a hard and tedious
job to perform.

Problems related to the Mistakes done by Other Employees:

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To err is human, so, sometimes the other employees commit mistakes and make the
customer dissatisfied. In that situation, the employee handles the grievances of those
employees and tries to create the positive image in the mind of the customer.

Problems related to the Mistakes due to the Error in the System:

Sometimes due to various reasons, the customers account would be debited twice for
the same charge or something similar to this occurs. Also, sometimes the ATM
Machine doesnt provide the cash but the account is debited. These kinds of system
errors make the customers dissatisfied and hence the dissatisfied customers arrive at
the bank staffs and this kind of problems are to be handled by the employees.

Problems related to the Non-functioning of Various Services:

Particularly in NBL, an employee should face difficult situation due to the

malfunctioning of the SMS services as well as the E- Banking Services. Thus, staffs
have to solve their respective problems.

In CSD, it was time-consuming to find cheques. It is because cheques were arranged

in order of cheques issued. But the order was broken when customers came to take
cheques. Hence, as per the suggestion of internee, cheques were arranged in
alphabetical order afterwards.

Therefore, one sitting in various departments should always be ready to face and solve
any kind of uncertain situation for the benefit of the customers and ultimately for the

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benefit of the Bank itself. And the internee had performed the entire above-explained
task and solved all the types of above explained problems as the assistant trainee of
NBL.

CHAPTER FIVE

Conclusion, Lesson Learnt and Recommendation

5.1 Conclusion

During the internship period and the preparation of this report, I learnt a lot about the
banking operation, about Nepal Bank in particular. The internship has been fruitful in
many ways to me. I knew only little bit about the banking earlier, but internship has
helped me a lot to know about the banks and its operation. This report in particular
has made me know how customers are to be treated and so on. Likewise, during the
internship period I found that the bank has a professional working environment. The
top management of the company is highly experienced and builds control on lawful

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situations. Working at NBL gave me an opportunity to gain valuable insights into the
working of a real organization. The experience at the bank will surely guide in future
career. I am grateful and proud to have had worked in a reputed organization like
Nepal Bank Limited. During the course of my internship I have learnt a lot of other
aspects other than the banking as to socialize with the people, to deal with the senior
staffs to make the working environment cozier and friendlier. I have also learnt that
the behavioral issues are most important inside the organization.

Remittance service in the Nepalese Banking practices has made a significant lap
ahead over the past few years by use and introduction of the latest banking
technologies and software to facilitate and convene the customers in best satisfying
their needs and wants. The various ways is used to transfer money from one place to
another as per the convenient. NRB has made various legal frameworks and provides
regulations up to a great extent, have facilitated the commercial banks in the use of
computerized technologies.

NBL is also using computerized banking and fax and is already a member of SWIFT.
NBL is at its best trying to serve the customers desires and is intensifying its services
and products with the additional number of customers being added daily to its list. It
is globally serving and catering its customers through different payment services with
its large network of correspondents and agencies in most major parts of the globe.

Many new commercial banks, that are newly established or even those are in full
operation, are bringing in the new technologies to cope up with the pace of
advancement and competition in the domestic as well as in the global banking
practices and so does the NBL.

Last but not the least; I want to conclude that Nepal bank Limited is excellent in term
of their services despite with some pros and cons with the issue related to customer
satisfaction. Although, NBL is well established bank with wide coverage over the
nation so it has an ample opportunity to gain competitive advantages over its
competitors. NBL has made a promise to provide excellent services to their customer
and improve their customer satisfaction by overcoming their weakness and doing their
best to retain quality services.

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 5.2 Lesson Learnt

As per the partial fulfillment of BBA course, I was assigned my internship in Nepal
bank limited. I have learnt and analyzed the importance of basic small things in
humans life. Some of the important lesson that I have learnt are as follows:

Confidence builds up: Internship program has really helped to build up the
confidence level. Uncomfortable, nervous was felt while interacting with anyone. But
during internship period dealing with customers has helped to increase confidence
level to greater extent.

Practical implication of theoretical knowledge: While working as intern most of

theoretical knowledge has a practical implication on the banking field. The accounting
concept finance concept, computer application concept of law, psychology, and
human resource management, organizational behavior, marketing communication,
business communication, economics, statistics, operation management and many
other theories were applied practically.

Develop communication skills: With regular interaction with customers has helped a
lot to develop a communications skill. One should present itself in front of the
customers in such a way so that customer feels satisfied in every aspect about their
queries that had been presented.

Socialization with the Professionals: Being a part of the organization, socialization

with the professionals of the corporate community is very essential for making the
working environment friendlier. Being calm under the adverse conditions and
tactfully handling the complex situation is most important part. And the importance of
time and punctuality came across me very vividly.

Knowledge about organizational environment and work culture: Environment

was so friendly and comfortable while working there. Every kind of work is done
systematically. Employees of the bank were very helpful and cooperative and got
solved very kind of problems immediately despites of their hectic work schedule.

Social Exposure: Regarding to the internship program, in the Remittance Service

Department knowledge was gain on the procedures in sending and receiving money

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 from the various location of the customers account on hand cash as per their request
was learnt. Furthermore, we learnt how to handle the call of customer and the call
from the various branches. Due to the vital guidance and recommendations of staff
members contribute a lot to expand the knowledge on general banking, familiarities
with banking, working environment interpersonal skills to deal with agents,
customers, senior employees and co-workers and about overall performance of
Customer Service.

Lastly NBL Bank is an excellent institution in terms of their product and services.
NIBL Bank is one of the most promising banks today and has an opportunity to
increase their market share and by improving their customers satisfaction by
overcoming their weakness and doing their best to retain quality services.

5.3 Recommendation

The employees should be more productive and communicative so that they can focus
on effective services.

The organization should reduce absenteeism

The employees should be motivated so that they can be more productive and customer
centric.

Customers queries and complains should be handled properly and patiently as some of
them were responded with inadequate information.

Inter department communication should be induced and encouraged.

Reliable and effective services should be provided to the customers.

Latest tools and technologies should be used.

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BIBLIOGRAPHY

www.nbl.com.np

www.nrb.com.np

Shrestha, Manohar Krishan 2008,FIM,Asmita publication, Nepall

Gautam & et al 2009, FIM, Ayam publication, Nepal

Thapa, Kiran 2008 reprint ,Financial instituitions and Market, Nepal

Different journal published by Nepal Rastra Bank

Nepal Bank Samachar- a three month magazine of Nepal Bank Limited

Different websites and

Different daily, weekly and monthly magazines etc

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