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A.

MONETARY POLICY 073/74


1. New monetary policy 073/74 issued: 2073/03/30 (governor- Mr. Chiranji Nepal)
2. Growth rate of GDP of Nepal: 6.94% (Based on Chaitra End 2073 Agro5.29, Ind.10.89 &
Service 6.90)
3. According to World Economic Outlook by IMF, economic growth rate of word:
3.2%(2016) & 3.5%(2017-forecasted)
4. Economic growth rate of Various Countries (forecasted by IMF for 2017):
China: 6.70% (2016) & 6.5%(2017)
India: 7.60% (2016) & 7.2% (2017)
5. Projected GDP growth rate of Nepal : 6.5% (FY2073/74)
6. Monetary policy started from FY 2059/060
7. Average current Inflation rate of Nepal: 5.0% Chaitra end 2073
( 2072/73 Proj. 8.5% but Actual 9.9%)
8. Projected inflation rate: 7.5% (5.8% in Poush 073 & Average Inflation up to Chaitra end
5.00%)
9. Money supply growth rate: 18.50% Poush 2073 & 16.20% on Chaita end 2073
10. Projected money supply growth rate: 17% (2073/74)
11. BOP: Rs 171.15 Arab in saving at 2073 Ashadh and Rs.45.02 Arab in Poush End 2073 &
50.64 Arab at the end Chaitra 2073.
12. Foreign Currency Saving : Rs. 1039.21 Arab in Ashadh 2073 add 1088.85 in Poush End
2073 in saving which can sustain for the import of goods & Service for 12.40.
Rs.1057.38arab at the end of Chaitra 2073 which can sustan for import of goods 13.3
month and goods & service for 11.5 month.
13. Inter-bank lending rate: 0.26% as on Poush 072(maximum of 7 days) & 2.71% on Poush
2073 & 0.75 at the end of Chaitra 2073.
14. Monetary Achievement up to Chaitra End 2073

Particular Target 2073/74 % Achievement up to Chaita


2073 %

Monetary Supply 17.00 16.20

Internal Debt (Loan) 25.00 21.71

Private sector Debt 20.00 24.40


Increase (Loan)

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15. No. of merger of BFIs till date: 136 merger to form 44 FIS(90 LAPS)
16. CRR (Cash Reserve Ratio): 6% for A class, 5% & 4% for B & C class FIS.
17. SLR (Statutory Liquid Ratio): 12% for A class, 9% & 8% for B & C class FIS.
18. CD Ratio is being monitoring by NRB on daily basis Dated 2074-01-01
19. TSA(Technical Service Agreement) will be taken on the following basis,
20 to 50 Percent foreign investment ----Take 5 Person
More than 50 percent foreign investment ----Take 7 Person
Time for TAS 5 Year & to be renewal
TSA not allowed other than joint venture bank
20. Re-financing rate of NRB to FIS in Agro/Hydro/Poultry/Dairy and Directed other special
Sectors: 4% which is financed by commercial banks by 9%
21. Refinancing period from NRB 12 Month and Maximum refinancing amount is equal to
25% core capital of respective BFIs.
22. General Refinancing rate through NRB 4 % and BIs can taken from customer maximum
9%
23. Specific Refinancing rate through NRB 1% and BIs can take from customer maximum
4.5%
24. Export refinancing by NRB with 1% interest and BFI can take 4.5% from customer.
25. Small & Medium Industries refinancing by NRB 5.00% & BFI by 10.00%.
26. BFIs have allocated 1% of Net Income to Corporate Social Responsibility Fund.
27. Board of Directors Educational Programme to be conducted within one month after the
joining date of BODs and to participating all BOD members at list one orientation
programme in every year.
28. BFIs have allocated 3% of total employee expenses for the career development &
training programme to the employees.
29. Total municipal office 744 (Village council 481, Municipality 246, Sub. Metro city 13 &
Metropolitan City 4)
30. Under 1 regional office of nay BFIs Minimum 10 branches required in that 40% of the
branch presence shall be in rural area.
31. NRB's approaches of Handling Liquidity problem by Repo/Reverse Repo:
I) Regular Market Operation (7 days)
II) Fine Tuning Operation(upto 3 months)
III) Open Market Operation (6 months)
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(Note: The amount of repo/reverse repo to be issued by NRB can't be more
than 2 % of local currency deposit of all BFIs inside Nepal)
32. Repo/Reverse repo auction period: 21 days (earlier 28 days)
33. Rate for Land of Last Resort: 7% (NRB to problematic FIS)
34. Mandatory Loan portfolio for Commercial Banks: 20% of Total loan in Productive Sector
including 15% for agro & hydro sector at the end of Ashadh end 074. Similarly, 15% &
10% for B & C class FIS.
35. Mandatory loan portfolio for Commercial bank : 5 % total loan in Productive sector loan
which including 2% on direct landing up to Ashad 2075.
36. As on 2073 Poush Production sector landing is Rs.254.1 Arab which is 15.9% of total
banking landing & as on Chaitra end Rs.283.89 Arab which is 17.1%.
37. NRB approach for monitoring BASEL-3 liquidity assessment: Prompt Corrective Action
(PCA audit)
38. Total duration of Directors post in FIS: Continue for maximum of 2 years.
39. Division of % for which can't be in the post of Executive post in FIS: 1% of paid of
capital
40. Name of New Reporting System of upcoming Basel-3: IFRS (international financial
reporting standard)
41. Zero percentage of Interest rate subsidy for opening of new microfinance branches in
specified districts by NRB : Rs. 30 Lac
42. No. of FIS in Nepal: 28 Commercial Banks, 54 B class development bank, 33 C class
finance, 50 D class micro-finance (As on Baishakh End 074)
43. Mandatory Deposit Insurance for FIS: Upto Rs. 2 Lac (EBL is the first Commercial Bank
to make deposit insurance)
44. Latest Anti-Money Laundering Act 2064, Merger Bylaws & Acquisition act, 2073
45. FATF: Financial Action Task Force(for AML purpose)
46. NRB's software to monitor Anti money Laundering unit: 'goAML' software
47. NRB's Approach for Environmental & Corporate Social Responsibility: CAMELS rating
48. Limit of Net Interest Spread for all BFIs: 5% (Average Yield-Cost of Fund)
49. Capital Requirement of National Level BFIs upto 2071 Ashadh:
A class: Rs. 8.00 Arab (8 Billion)
B class: Rs. 2.5 Arab (National level), Rs.1.20 Arab( 4-10District) Rs.50.0Crore (1-3
Dist)
C class: Rs. 80 Crore (for National level+4-10Dist), Rs. 40 Crore for other(1-3 dist)

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50. No. of goods allowed to be imported from India: 161
51. Average Interest Rate as on Chaitra End 2073

Particular Ashad 2073 % Chaitra End 2073 %

91 Days Treasury Bill 0.05 0.93

Interbank Interest Rate 0.69 0.75

Interest on loan 8.86 10.77

Interest on Deposit 3.28 5.08

Interest spared 5.7


Rate(Average all BFIs)

Avarage Base Rate 8.6

Deprive sector Lending 5.8

Refinancing 949.53 Crore (on 4%) by


NRB

Listed companies under Nepal Stock Exchange is 210


Foreign Exchange
52. Exchangeable foreign Currency A/c bearing Nepali account holder can remit maximum of
15,000 USD or equivalent from the same account while importing either goods or
services at one year.
53. Except India, from third countries, payment of goods & services for maximum of 50,000
USD or equivalent in a single time by DD/TT.
54. Exchangeable facilities for Freight Charges of Machineries & equipments imported from
India can be allowed upto: 10 Lac INR
55. Exchangeable Facility by providing Identity Card for Nepali Citizens: Equivalent to USD
3,000
56. Exchangeable Facility for online purchase by debit/credit card: Equivalent to USD 3,000
57. Exchangeable Advance payment facilities for Aircraft machineries imported from foreign
countries can be allowed upto: 1 Lac USD
58. Exchangeable facilities for Freight Charges of satellites/telecommunication goods
imported from foreign countries can be allowed upto: 1 Lac USD.
59. CAD (Cash Against Document) USD 5.00lacs for Export can be made
60. Except India, USD 2500 allowed for Nepali Passport Holder who wish to visit foreign
country.
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61. USD 500 allowed for those Nepalese passport holders who go to foreign under
employment visa.
62. USD 1000 at one time allowed for SAARC countrys (except India) visit after getting
VISA from the concerned countries and maximum USD 2000.00 in a year.
63. USD 5000 for those Nepalese who wish to go for business promotion to abroad (except
india).
64. Authorized capital requirement for Remittance companies:
a) Remittance companies who issues remittance card Rs 25.00 crores
b) Principal agent for doing remittance transaction is Nepal Rs 10.00 crores.
c) Who takes an agent from foreign principal agent is RS 2.00 Crores.
65. Authorized capital requirement for Money Changer
a) Money Changing only Indian Currency Rs. 10.00lacs
b) Money Changing only foreign currency Rs.15.00lacs
c) Money Changing both Indian & foreign currency Rs.20.00lacs
And also added 5.00lacs in above capital who provides foreign currency against
passport for visit visa.
66. Daily purchase limit of Gold by A class Bank is 20.00kg after recommended by Bakers
Association Nepal.
67. BFIs can Purchase Gold of 100grm, 200grm,500grm and 1 Kg and supply of gold to
Bagmati Zone 60% and & 40% of outside the zone of Nepal.

BFIS ACT 2073 (BAFIA)

1. Published date of BAFIA 2074-1-10 issued by constituency assembly.


2. Promoter share holders in any BFIs cannot take loan against promoter shares for 5 years
of BFIs establishment. After 5 years the promoter share holders can avail loan facility
by keeping 50% of promoter share holding from BFIs. If any promoter holders have 2%
shareholding and wish to sell/avail loan need not to take permission from NRB.
3. If Promoters wish to convert promoter share into ordinary share this can only happened
after 10 years of operation of any BFIs by taking approval from NRB.
4. BOD members min 5 & max 7.
5. The tenure of BOD is 4 years extended to 2 times.

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6. Free director who holds less than 0.1 percent of share in any BFIs can be only 1 tenure.
7. Board meeting of any BFIs shall be 12 times in a year and differences of one meeting to
another meeting will be 60 days i.e 2 months.
8. Minimum attendance of BOD meeting will be 51% and any BOD is absence upto
continue 3 meeting shall considered as void.
9. If any changes in BOD happened in any BFIs the bank shall be inform to NRB within
15 days of appointment & for CEO 7 days.
10. General reserve provisions in any BFIs.
a) 20% of net profit shall be transfer to reserve till the double of paid up capital of the
bank. After doubled the capital 10 % shall be transferred to general reserve of the
bank.
11. Exchange equalization reserve: 25% of income from foreign exchange currency except
INR shall be transferred to exchange equalization reserve.
12. Audited Committees meeting held at list 1time in every three month.
13. Audited Financials should be completed within 4 month of each financial year.
14. For opening new BFIs in Nepal the NRB gives permission within 120 days after
submission of all required documentation process.
15. 30% for general public & 0.5% for employees shares shall be issued.
16. Prior approval from NRB is needed for issuing of debentures & other financial
instruments.
17. BFIs shall issue 30 % of shares to public after 3 years of BFIs operation.

B. UNIFIED DIRECTIVE OF NRB, 2073/74


I. BASEL-2, GENERAL PROVISIONS
1. Current NRB Act: 2058
2. Minimum Capital Requirement for BFIs:
A class: 6% of core capital; 11% for Capital fund (core+supplementary capital)
B class: 5.5% of core capital; 11% for capital fund
3. Core capital=(paid up+proposed bonus share+share premium+general reserve+
)-(goodwill+fictitious assets+shares security of financial interest +)
4. Supplimentary Capital: 6 items (General Loan Loss Provision+Assest
revaluation fund+Hybrid Capital Instruments+subordinated term
debt+Exchangeable adjustment reserve+Investment adjustment reserve)
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5. Total Risk Weighted Assets: 3 items (Risk weighted assets inside of the
Balance Sheet items +Risk weighted Assets offsite of the Balance Sheet
items+Operational Risk weighted Transaction)
6. Capital Adequacy Ratio= Capital fund (core+supplementary) * 100
Total Risk Weighted Assets
7. ICAAP: Internal Capital Adequacy Assessment Process
8. BCBS: Basel Committee on Banking Supervision (firstly by G-10 countries on
1998)
9. BASEL-2 Released date: 26 June 2004. Uptaded on 2005 and comprehensive
version effected from June 2006.
10. BASEL-2 Effective in Nepal: Mid July 2008 (F/Y 2065/66)
11. BASEL-III Released date December 2010.(Implementation in Nepal Mid July
2016 (FY2073/74 and full phase implementation on Mid July 2019)
12. Three Pillars of BASEL-2:
i) Minimum capital Requirement
ii) Supervisory Review Process
iii) Disclosure Requirement
13. NRB's Approaches to measure different risks
i) Simplified Standard Approach (SSA) for measuring Credit Risk
ii) Basic Indicator Approach (BIA) for measuring Operational Risk
iii) Net Open Position Approach (NOPA) for measuring Market Risk
14. Capital Charged by Basic Indicator Approach (BIA): (Total sum of Annual
Gross Income, whrere positive, over the previous 3 years*15% )/ no. of
previous 3 years which gross income is positive.
(Note: if gross income is negative or for new banks which have not completed an year
of operation, 5% of total credit & investment net of specific provision shall be
considered as the capital charged for operational risk)
15. Gross income or total operating income=Net interest Income + Non-interest
income`
16. Market Risk:
i) Interest Rate Variation Risk
ii) Foreign Exchange (including gold position) fluctuation risk
iii) Investment risk

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17. Investment Adjustment Reserve: 2% of Available for sale portfolio
18. Net Open Position Approach: 5% of capital charge for market risk
Formula=(Assets-Liabilities in a same currency)
19. Supervisory Review Process includes:
i) ICAAP
ii) Supervisory Review
iii) Supervisory Response
20. In case of bank has provided loan facilities in excess of SOL: 10% of such
excess exposure shall be added to the RWA for credit risk
21. If the bank has been involved in the sale of credit with recourse facility: 1% of
the sale value shall be added to the RWA for credit risk
22. Where the bank do not have satisfactory Asset Liability Mgmt policies:
additional 1% of net interest income of previous immediate FY shall be added
ti the RWA of market risk
23. Where the Bank's net liquid asset to total deposit ratio is less than 20%, a risk
weight of 1% of total deposit for each shortfall % is added to the RWA.
Note: net liquid assets=(cash & bank balance+money at call+placement upto 90 days
and investment in govt. securities)
24. Where the bank do not adopt sound practices of management of operational
risk: an additional charge of 2%-5% of gross income of immediate previous
financial FY shall be leived for operational risk
25. In general, banks are required to report to NRB of their CAR computation on
monthly basis within one month after the end of the previousmonth.
II. LOAN CLASSIFICATION & LOAN LOSS PROVISIONS
26. Classification of loan an provisions:
Classification Period Provisions
i) a) Pass upto 3 months
1%
b) Watch List failed to provide at least single installment/1 month+ 5%
ii) Sub-Standard upto 3-6 months 25%
iii) Doubttful Loan 6-12 Months 50%
iv) Bad Debt 12 months+ 100%
27. Non performing Loan (NPA)=Weighted average of respective provision of Sub
Standard+Doubtful+Bad Loan with Total Loan
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28. Pass Loan constitutes:
a) Gold Loan
b) FD receipt Loan
c) Security bearing by Nepal Government
d) Renewal of Short term loan having tenure of maximum upto 1 year
29. Credit Card Loan/Hydropower Project/Transmission Line/Cable Card related
Loan which are not write off (repayed) within 90 days are supposed to be Bad
Loan
30. General Grace period (sanction date to first instalment period) for Term Loan: 1
year
31. Provision of Re-Structured/Re-Scheduled Loan which are in only in a pass
category 12.50%
32. Provision of Nepal Govt Rugna Industries Re-Structured/Re-Scheduled Loan
which are in only in a pass category: 25%
33. Once Re-Structured/Re-Scheduled Loan fall under Substandard/Doubt/Bad
Loan category should be regular for 2 years of repayment will be converted
Pass Loan Category.
34. Provision for Re-Structure/Re-Scheduled Loan fall under National Level
Priority basis Projects such as Hydropower/Cable Car/Cement factory will be
1% only and categorised as PASS LOAN.
35. Provision for Re-Structure/Re-Scheduled Loan fall under Poultry
Entrepreneurship affected by Bird flu will be 1% only and categorised as PASS
LOAN.
36. If the Loan is insured in Deposit and Credit Guarantee Corporation, the loan
can avail 75% discount on loan loss provision.
37. Extra Loan Loss provision for third party collateral: 20% extra in each loan loss
provision category
38. Extra Loan Loss provision for those loans which are provided with
Individual/Corporate guarantee: 20% extra in each loan loss provision category
39. FIS can change their classification of loan to lower level whatever they want.
40. Name of Loan Loss provisions;
i) Performing loan : General Loan Loss Provision
ii) Non-Performing loan : Specific loan loss Provision
41. Provisioning of NBA(Non-Banking Assets, which are adopted by someone
while categorised under NPA): 100% from the date of acceptance

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42. It is necessary to list the client as black listed while accepting the NBA
securities for loan more than Rs. 25 Lac
43. Terminologies:
CS: Credit Sale, CP: Credit Purchase, RP: Re-Purchase, TO:Takeover
44. It is not allowed to provide loan or accept deposit with the financial guarantee
of any Domestic BFIs present in inside of Nepal.
45. General provision of Loan for IPO of public limited company; not allowed for
first 7 days of offering for which the shares are not fully subscribed.
46. IPO Loan after 7 day; for the fully unsubscribed shares can be allowed for
margin upto 50% maximum (time-upto the period of refundable and are not
supposed to be restructure/rescheduled)
47. Margin Lending: Valuation of Shares will be made in average of last 180 days
trading price at NEPSE or the current market price whichever is lower(once
sanctioned there is no additional credit facilities for the revaluation of same
securities)with 50% margin only.
48. Margin call can be called off in within of 7 days if the share price decreased
from the prescribed margin and collect margin within 35 days from the
customer.
49. No margin call; upto 10% decreased in the price of share or the current value of
shares which is 1.5 times greater the total margin lending.
50. Maximum tenure of margin lending: 1 year (subjected to renewal for
satisfactory performance)
51. Margin lending loan loss provision: 1% for pass loan & 100% for other than
pass loan.
52. Maximum margin lending option: not more than 25% of core capital of ownself
to one listed company & Maximum Margin lending is equal to core capital of
ownself.
53. Duration of confirmation of settlement of Bank Guarantee claim; 7 days
(confirmation of either pay or not) & next 7 days if the claim is to be paid.
54. Risk weighted value for possible guarantee claim: 200% while calculating
CAR
55. No restriction for providing Hire Purchase Loan for regional working station.
56. TR loan: Allowed maximum upto for 150 days up to 2074 Ashadh.
57. PAN no. is needed from the borrower (each individual of group borrower) if the
total loan is in excess of Rs. 1 Crore.
58. Restriction of Loan to CEO/BOARD member/Management committee member
except loan against govt debenture and Credit card loan.

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III) SOL, SINGLER OBLIGOR LIMIT
59. SOL limit for a single borrower: 25% of core capital (Fund Based+Non-Fund
Based)
60. SOL limit for production & employment/export/agro sector/cement
factory/tourism and other productive sector loan: upto 30% of core capital
61. Hydropower Project/Transmission line/Cable Car project-upto 50% of Core
Capital (for hydropower project PPA agreement is needed with the concerning
authority)
62. First Instalment period for Hydropower Project/Transmission line/Cable Car
project: Prescribed Moratorium period or Electricity Production date which is
earlier
63. No limit for SOL for Nepal Oil Corporation (NOC), Nepal Food Corporation
(NFC) & Krishi Samagri Company Ltd.
64. Real Estate Loan: allowed upto 50% of fair market value, if Residential Real
Estate: 60.00% of fair market value (Home loan of Rs 1 Crore or less than Rs.
1 crore are supposed to be residential real estate loan)
65. Limit for Real Estate Loan for BFIs: Maximum of 25% of total Loan or 10%
only of the total loan for Land Purchase purpose real estate loan.

IV) NRB REPORTING


66. BFIs are needed to complete the audit procedures within 4 months after the FY.
67. Quarterly financial disclosure should be made with in 35 days of respective
quarter end.
68. Loan Classification reporting to NRB to be done after 1 month of each quarter.
69. Sister concern/ Allied concern/Associated firm shall report to NRB in Half
Yearly basis.
70. Big Borrower (Rs.2.00core & Above) shall do reporting to NRB on quarterly
basis within 1 month after quarter end.
71. CAR & RWA reporting shall be done monthly basis within 1 month
72. Sector wise lending report shall be done monthly basis within 15 days
73. Productive sector review reporting Half yearly within 1 month
74. Liquidity
75. Terminologies
NAS: Nepal Accounting Standard
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IAS: International Accounting Standard
IFRS: International Financial Reporting Standard

V) RISK MITIGATION PROVISIONS


76. Types of Risk:
a) Liquidity b) Interest Rate c) Foreign Exchange Fluctuation d) Credit or
Investment e) Operational Risk
77. Categorization of Asset & Liability Payment period to access liquidity risk;
Value of possible assets and liabilities to be paid within a) 0-90 days, b) 90-180
days, c) 180-270 days, d) 270-360 days, e) 360 days+

78. Standard Credit to Deposit Ratio (CD Ratio) Currently : 80%


79. Liquidity profile to be reported to NRB after 15 days with the end of each
quarter.

VI) CORPORATE GOVERNANCE


80. Minimum % of holding of shares by promoters, shareholders or staff which are
not permitted to avail loan facilities: 1% of paid up capital
81. Minimum 1% of holding of shares by promoters, shareholders or staff which
are holding 10% shares of other firm/company or instructions, those firms are
not allowed to avail the loan facilities from any BFIs except gold loan/FD loan/
100% cash margin loan.
VII) TIME FRAME OF SEVERVISORY RESPONSE
82. Minimum time frame to respond supervisory response: 30 days from the date
of report received or specific time by NRB, 35 days for the written capital
adequacy ratio planning framework
VIII) INVESTMENT PROVISIONS
83. No restriction for BFIs for investing in the Govt bonds/securities, NRB
debenture after BOD approval which are listed in NEPSE. But, those
institutions which are not listed in NEPSE or cannot be listed within a year ' an
investment adjustment reserve' should be maintained and the said reserve fund
can't be accessed till the listing of such securities except investing in NCHL,
CIC Limited & National Banking Institute.3
84. Maximum investment on one company s Share/ Debenture/Mutual fund 10%
of core capital and all companys share/ debenture/ mutual fund 30% of core
capital.
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85. Limit of investing in a single institution's share, debenture or mutual fund: 10%
of Core capital of own.
86. Total limit of investing institution's share/debenture or in a mutual fund: 30%
of Core capital of own.
IX) DATA SEGREGATION
87. If the personal loans, flexi loans having limit of Rs. 50 Lac or more than Rs. 50
Lacs are sanctioned without disclosing the purpose are categorised as REAL
ESTATE LOAN.
88. Residential real state (housing) loan of limit greater than Rs. 1 Crore are
categorised as REAL ESTATE LOAN.
89. SMEs(Small & Medium Entreprises) are defined with;
a) Paid up capital to the extent of Rs. 50 Lac
b) Fixed assets to the extent of Rs. 5 Crore
c) Engaged in productive/service sector
d) Proprietor/director self engaged in the business or transaction of business
X) PROMOTOR SHARES TRADING PROVISIONS
90. One can invest as promoter share upto 15% of paid up capital of the same FIS
in one FIS, and 1% of paid up capital for other FIS except previous one. The
limit for D class FIS is 25% & 10%. But no restriction on investing as promoter
shares for own subsidiary company.
91. Maximum investment on owns subsidiary company is equal to 20% of core
capital.
92. Promoter shares limit of Nepal Govt ownership institutions (min 50% or more)
is 25% after getting NRB approval.
93. NRB's approval is not required for trading of maximum 2% promoter share
holdings, if more than 2% NRB approval is mandatory. Calculation of 2%
promoter share is on the basis of paid up capital.
94. NRB's provision of minimum weight of promoter shares: 51%

XI) CONSORTIUM FINANCING


95. Minimum no of FIS to form consortium finance: 2 or 2+
96. Consortium meeting held as list one time in every 4 month.
97. Loose Consortium means Paripaso.
98. Lead bank will informed to the borrower about lending within 90 days of
formation of consortium agreement.
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99. Consortium report sends to NRB quarterly basis after quarter end within 30
days.
XII) CIC & BLACK LISTING PROVISIONS
100. Ka.Su. Fa. 1 & 2 is to be filled by respective FIS while sanctioning loan of
limit Rs. 10 Lac or 10 Lac plus and if the loan due for 90 days for same limit to
CIC limited within 15 days.
101. After above clause, Credit information should be sent to CIC Limited after 15
days of each quarter until the repayment of total loan.
102. For blacklisting of the borrower, Limit of Rs.10 Lac or more is required,
which is to be sited as blacklisted by CIC limited within 5 days after the
recommendation of the respective FIS.
103. No credit limit of the borrower for listing as blacklist of CREDIT CARD
LOAN.
104. Classification of Defaulters;
a) Wilful defaulters
b) Non-wilful Defaulters
105. Minimum time period for including the borrower as blacklisted: 1 Year (loan
condition), insufficient cheque amount for another case.
106. Credit information should be intimated to all other FIS while sanctioning
microfinance limit of Rs. 50,000.
107. Blacklisting of the borrower whose payment outstanding is Rs1.00crore and
above than it will be published national level newspaper on Half yearly basis.
XIII) CASH RESERVE RATIO(CRR) & STATUTORY LIQUID
RATIO(SLR)
108. CRR for Commercial Banks: 6%, 5% for Development & 4% for Finance.
109. SLR for Commercial Banks: 12%, 9% for Development Banks & 8% for
Finance
110. CRR is calculated on the basis of total deposit liability which is to be
deposited in NRB
111. Fine & Charges for not maintaining prescribed CRR;
a) For first time: insufficient amount of CRR*prevailing bank rate
b) For 2nd time: insufficient amount of CRR*1.5 times of prevailing bank rate
c) For 3rd time onwards: insufficient amount of CRR*2 times of prevailing bank
rate

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112. CRR is calculated in an every two week (14 days) and taken an account for the
calculation of the value of deposit liability of earlier 2 weeks time &
maintained 70% CRR on daily basis.
113. Exchangeable foreign currency account, margin accounts are not considered
while calculating CRR.
114. SLR calculation: CRR amount in NRB+ Cash Balance of Vault+ Investment in
govt securities(T-bills/development debenture)+ cash balance in other FIS
which are supposed to be available except by national level FIS divided by total
local currency deposit liability in previous monthly basis value.
115. Fine & Charges for not maintaining prescribed SLR;
d) For first time: insufficient amount of SLR*prevailing bank rate
e) For 2nd time: insufficient amount of SLR*2 times of prevailing bank rate
f) For 3rd time onwards: insufficient amount of SLR*3 times of prevailing bank
rate
XIV) OPENING OF NEW BRANCH OFFICE
116. Opening of new branch office of FIS cannot be allowed whose NPA is more
than 5% on the immediate previous quarter.
117. In NRB directives 14 districts are categorised as districts of non-presence of
FIS, where if the FIS opened a new branch office, NRB will provide Rs. 50 Lac
as refinance facility in zero interest inside the districts and Rs. 1 Crore inside
the same districts but out of the district headquarter.
118. Provision for opening a new branch office in KTM
a) At least one branch office with the 14 districts &
b) 2 more branch office at outside of the KTM valley(at least one outside of the
district headquarter or municipality)
119. Extension counter: for only outside of KTM valley except special case
120. New Branch will be open within 6 month after approve date of NRB.
XV) INTEREST RATE
121. Net interest spread: 5%
122. Base rate %: Cost of fund%+ Cost of CRR%+ Cost of SLR%+ Cost of
Operation%+ROA%
123. Cost of fund%: Weight aged average % of local currency deposit liability
124. Cost of CRR%: CRR amount*Cost of fund/Invest able fund amount.
125. Amount in Invest able Fund:

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Average amount of local currency deposit+ Average amount of Local borrowings-
Average amount of SLR
126. Cost of SLR%: Amount of net SLR*(Cost of Fund%-Average interest of govt
securities)/ Invest able fund amount.
127. Net SLR=Average amount of SLR-Average amount of CRR
128. Cost of Operation % =Total operational expenses*85/Average Invest able fund
amount.
129. ROA % = Standard 0.75%

XVI) PRODUCTIVE SECTOR & DEPRIVED SECTOR LENDING


130. Deprived Sector Lending: 5.0% for A class including 2% direct lending up to
Ashadh 2075, 4.5% & 4.0% for B & C class FIS in
131. Deprived Sector Lending:
a) Loan for poor family to operate micro enterprise activity upto limit: Rs. 1 Lac,
if regular for 2 years then Rs. 3.00 Lac
b) Loan for renewal energy power per family: Rs. 1 Lac, if regular for 2 years
then Rs. 1.50 Lac
c) Loan for poor family to operate micro business with collateral Rs.3.00lacs and
regular for 2 years provided Rs.7.00lacs.
d) Loan for those which are going for foreign employment: Rs 1.50 Lac
e) Loan for establishing cold storage: Rs. 3 Lac
f) The business which operate by women Rs. 4.00 lacs and with collateral
7.00lacs.
g) Low cost housing loan upto Rs. 4 Lac (for land purchase/house construction)
h) Loan provided to D class Microfinance
132. Yuba Tatha Saana Byabasayee Sworajgaar Kosh:
One third of deprived sector loan % (3.5%) should be deposited is the above said
Kosh at own bank of the kosh's account.
XVII) OTHER PROVISIONS
133. Write off of loan cannot be executed until & unless the loan turns to Bad Debt
and provisioned 100% as loan loss.
134. Bank Rate: Standard 7% (NRB to other licensed FIS)
135. Standing Liquidity Facility (SLF): 90% of short term govt securities

16
136. Rate Land of Last Resort: At Prevailing Bank rate for maximum 6 months
137. BFIs can collect deposit from one institution not more than 20% of total
deposit.
138. Corporate deposit is not more than 50% of total deposit.
139. ABBS/ DR charge free for natural person up to Rs.2.00lacs.
140. Deposit collection limit
a) A class Bank No limit
b) B class Development Bank 20 times of core capital
c) C class Finance Company 15 times of core capital

C. GENERAL MATHMATICS & FINANCE


1. Economic Order Quantity = 2*Annual Requirement*Ordering Cost
Carrying Cost
(Note: Economic order quantity (EOQ) is the optimal level of cost for trading
organizations, where ordering cost equals to carrying cost)7

2. Cost of EOQ= EOQ*Carrying Cost + Annual requirement*Ordering Cost


2 EOQ
3. Break Even Sales (the point of sales where the firm gets no profit no loss);
=Fixed Cost/Contribution Margin Ratio
Where, Contribution Margin ratio= Sales-Variable Cost
Sales
4. The net profit in P/L account is in Debit Side, where net loss is in Credit side.
Although, brought down (b/d) gross profit is in Credit side of P/L account, and
brought down (b/d) gross loss in Debit side.
5. The formula of Stock Valuation:

Price of Stock ,Po= Dividend for the upcoming year,D1


Cost of capital(r)-Growth rate(g)
6. Return of Assets= Net Income after tax/ Total assets
17
7. Return on Equity= Net Income after tax/ Total equity Capital
Or, ROA*Total Assets
Total Equity Capital
8. Earning Per Share= Net Income after tax/No. of Shares outstanding

D. INCOME TAX ACT, 2058 PROVISIONS, NEPAL CA ACT,


2053 IN SHORT
1. Income tax firstly started from: Britain, Nepal in 2016 BS by trading profit &
salary tax act, 2017
2. First income tax act in Nepal: 2019 BS
3. The running Income tax act: 2058, and commencement from 2058 Chaitra 19
4. Tax Calculation:
a) For individual natural person: on the basis of Cash accounting basis
b) For Company: on the basis of Accrual Accounting basis
5. Tax exemption for:
a) Profit for a FY not to extent of Rs. 4 Lac &
b) The volume of transaction not to exceed by Rs 20 Lac
6. TDS calculation:
i) Payment made by Nepal govt. in pension form: 5%
ii) VAT registered firms: 1.5%
iii) Payment of dividend: 5%
iv) Payment of own source of rent: 10%
7. Tax in lottery or exceptional prize benefits: 25%
8. If the payment is made exceeding limit of Rs. 50,000 to a person in the head of
contract service: TDS of 1.5% charged
9. Tax Deposit by the taxable firms';
a) Upto Poush end: 40% of self assessment of total tax
b) Upto Chaitra end: 30% of remaining assessed tax
c) Upto Ashadh end: 100% of self assessed tax7

18
10. Depreciation Rates:
a) Building, Permanent Structures : 5%
b) Computer/Furniture instruments : 25%
c) Automobiles/Bus/Minubus : 20%
d) Mining and Construction : 15%
e) Intangeable Assets : Cost/Life Span
11. VAT commencement in Nepal: 2052 BS (by 10%), now it is 13%
12. Nepal Budget for Current F/Y: 1279.99 billion
13. Current Expenditure Rs. 803.53Arab(62.80%), Capital Expenditure Rs. 335.17
Arab(26.20%) and Financial Management Rs.140.29 Arab
14. No tax will be levied for importing 32' TV from foreign employment countries
15. 3 E's in Economics: Economy, Efficiency & Effectiveness
16. Public Purchase Act ongoing today: 2063
17. Nepal Chartered Accountant Act: 2053 now
18. Nepal Accounting Standard Board: 13 members
19. Nepal Auditing Board: 7 members
20. No one can audit of the same company for minimum of 3 years, who is the ex-
salaried staff of the same company
21. Limit for auditing:
a) CA, A class: No Limit
b) RA, B Class: Rs. 40 Crore of the value of Assets or Liabilities
c) RA, C lass: Rs. 10 Crore of the value of Assets or Liabilities
d) RA, D class: Rs. 1 Crore of the value of Assets or Liabilities
22. Audited General Office establishment: 2016/03/15
23. Basis of Auditing: 4 types (theories, basis, main assumptions, guidance)
24. Audit types: 8 (continuous, final, interim, partial, tax, cash, cost & mgmt)
25. Models of Double Tax Avoidance Agreement (DTAA): 3 types (UN, OECD &
USA Model)

19
E. COMPANY ACT, 2053
1. Current prevailing company act: 2063 BS
2. Member of a company:
a) Private Company: 1-101 members
b) Public Com: 7- no limit
3. Those companies which distribute dividend: Limited company
4. Paid up capital of Public Company: Rs. 1 Crore (other than directed by NRB)
5. Main fundamental Shareholder: 5% share holding for public company or but if the
paid up capital is more than Rs. 25 Crore, than 10% shares holding
6. Prior information time to be published for calling AGM: 21 days
7. Prior information time to be published for calling Special General Meeting: 15 days
8. AGM calling time: 1st AGM within a year of commencement, and then 6 months after
the ending of same F/Y
9. Management BOARD member in a public Company: 5-7 (4 years of period)
10. Board members of NRB: 7 (governor 1-chairman, Deputy governor 2, secretary of
ministry of finance 1, external experts, 3)
11. Partnership firm required minimum partner 2 & maximum 50

F. MISCELLANEOUS
1. The number of peoples of Nepal under poverty line: 25.2%

2. The area of land covered by forest in Nepal: 39.60% (Target for 2015-40%)

3. Nepal's Population under Census, 2068 BS: 2,64,94,504 (growth rate 1.35%, Male:
48.50%, Female: 51.50%)
4. Per capita Income of Nepali peoples: 862 USD annual

5. Public Entreprises in Nepal: 37 (19 in profit for F/y 2070/71, 17 in Loss, 1 has not
transaction for the F/Y 2070/71)
6. Area of Nepal: 1,47,181 Sq. Km (17% or 16 Districts Hilly Region, 68% or 39
Districts Mountainous Region & 15% or 20 Districts in Terai Region)
7. Biggest National Park: She-Phoksundo

8. Nepal's area in world: 0.03% & 0.3% in Asia


20
9. Distance to nearest Sea Beach from Nepal: 1127 Km

10. Nepal's Time under Greenwich Mean Time: 5.45 hour fast

11. Nepal's length of East to West: 885 KM, North to South: 193 Km

12. Upper Tamakoshi Hydropower Capacity: 456 Mw

13. Area of KTM valley: 642 Sq. Km

14. Largest river of Nepal: Saptakoshi, Longest: Karnali, Deepest: Gandaki

15. Richest country in hydropower capacity in the world: Brazil(1st), Nepal 2nd

16. One Pillar bridge: Karnali river, Egg Basket Distric: Chitwan

17. No of mountains higher than 8000 meters in the word: 14 (out of these 8 in Nepal)

18. Tourism day for Nepal: September 27

19. Height of Naamche Bazar: 3450 Mt

20. Biggest lake of Nepal: Mahendra Lake

21. Deepest lake: She-Phoksundo Lake

22. Largest zone of Nepal: Karnali, Smallest: Mahakali

23. No. of districts touches both China an India : 2 (Taplejung & Darchula)

24. Distance between Nepal & Bangladesh: 27 Km

25. No of Continent in the world: 7 (Largest-Asia, Smallest-Australia)

26. No. of landlocked countries in the word: 48

27. The largest Island in the world: Greenland

28. The longest river in the world: Nile (Country Egypt)

29. The largest river in the word: Amazon

30. The largest production of gold: South Africa

31. Origin place of earthquake inside the earth: hypocentre, the outermost surface of
hypocentre: Epicentre
32. Machine which measures magnitude, latitude, origin place of earthquake-
Seismograph, measurement machine of scale of earthquake: Richter scale
33. The biggest planet: Jupiter, Smallest: Mercury , total planets: 8 in solar system

34. Land of thundering: Bhutan

35. Black continent: Africa

36. Land of five rivers: Punjab (India)

21
37. The gateway of Nepal: Birgunj, gateway of India-Mumbai

38. Paradise of east/Switzerland of east: Kashmir (India)

39. Organized Nepali Year; Tourism year for Nepal: 2011 AD, Lumbini Visit year: 2012
AD; Visit Nepal: 1998
40. Oldest temple of Nepal: Swyambhunath Temple

41. First governor of NRB: Himalaya Shamsher Ja.Ba. Raa.

42. First Prime Minister of Nepal: Bhimsen Thapa

43. First commercial bank of Nepal: Nepal Bank (1994 Kartik 30 BS)

44. NRB establishment: 2013 Baisakh 14 BS

45. First Joint venture Bank of Nepal: Nepal Arab Bank(Nabil Bank)

46. Largest district of Nepal: Dolpa; Smallest district-Bhaktapur

47. India Prime Minister Narendra Modi first visit in Nepal: 16th of Shrawan 2071

48. Constitutional bodies in Nepal: 6 (attorney general/auditor general/election


commission/CIAA/Public service commission/human right commission)
49. When did the 2nd constitutional assembly election held: Mangshir 4, 2070

50. Chairman of Constitutional assembly: Mrs. Onsari Gharti

51. Ministers of Nepal Current

Prime Minister: Mr. Sher Bahadur Deuba


Finance Minister: Mr. Lokendra Bahadur Karki
Foreign Affairs Minister: Mr. Krishna Bahadur Mahara
Home Minister/Deputy Prime Minister: Mr. Janardan Sharma
Education Minister: Mr. Gopal Man Shrestha
Local Development Minister/Deputy Prime Minister: Mr. Bijay Kumar Gachhadar
52. Nepal's ambassador to India: Deep Kumar Upadhyay, India to Nepal: Mr. Manjeev
Singh Puri
53. India's Some Ministers/President:

President: Pranab Mukharjee


Vice-President: Mohammad Hamid Ansari
Prime Minister: Narendra Modi (Since 26th May 2014)
Finance Minister: Arun Jetley

22
Foreign Minister: Susma Sworaj
First President of India: Rajendra Prasad
First Prime Minister: Jawaharlal Nehru
RBI Governor Mr. Urjeet Patel 24th Governor of India from September 2016.
54. First country of the world to became first diplomatic relationship of Nepal: Britain

55. President/Prime Minister of other Countries:

USA President: Donald Trump


China Prime Minister: Tse-Jing-Ping
Britain Prime Minister: Theresa May
UN Secretary: Antonio Guterres from 1st jan.2017
56. Categorization of enterprises

a) Small Entreprises: assets upto Rs. 5 Crore


b) MediumEntreprises: assets Rs. 5-10 Crore
c) Large Entreprises: assets more than Rs. 15 Crore
57. Establishment of NIDC: 2016 BS (First Development Bank in Nepal)

58. First enterprise established in Nepal: Biratnagar Jutt Mill

59. Total no. of Airports in Nepal: 44

60. First country of aviation agreement with Nepal: India

61. Full Form:

a) CDMA: Code Division Multiple Access


b) VSAT: very small aperture terminal
c) FM: Frequency Modulation
62. First Hydropower of Nepal: Pharping

63. Hydropower capacity of Upper Karnali/Arun 3rd Projects: 900 Mw (PDA done with
GMR & Satlaz Company, India respectively)
64. First Five Year Plan Commencement in Nepal: 2013-2018 (Presently its 13th plan for
3 years i.e. 070-73)
65. When did Nepal got membership in WTO(earlier GATT): 2004 April 23, 2061
Baisakh 11 (147th member) Switzerland,Zeneva-Headquarter, (Total member now-
164)

23
66. Establishment of IMF HQ-Washington DC: 1956 Est of. World Bank HQ-Washington
DC: 1945 Asian Development Bank( HQ-Manila-Philippines): 1996
67. The science which deals with the currency/currency printing activities: Lithology

68. The largest donor country for Nepal: Japan

69. How many authorised languages in UN: 6 (out of these French & English are official
language)
70. Nepal's UN's Membership: AD. 1955 December 14 (total member of UN till now: )

71. The most of the expense/budget of UN borne by: USA (Nepal borne 0.01% of
expenses of UN)
72. How many permanent member in UN: 5

73. When did UN established: 1945 October 24

74. Central Banks & Currency

India: Reserve Bank of India, Rupee


Pakistan: State Bank of Pakistan, Rupee
Sri-Lanka: Centra Bank of Ceylon, Rupee
Maldives: Maldives Monetary authority, Rupeees
Bangladesh: Bangladesh Bank, Taka
Bhutan: Bhutan Broadcasted Corporation, Negultram
Spain: Pesta
Thailand: Bahat
RussiaL Rouble
Burma: Kyat
Korea: Won
Turkey: Lira
Germany: Mark
75. How many members in SAARC: 8 (latest membership-Afghanistan)

76. No of member countries in EU; 28

77. Capital Cities:

Australia: Canberra
Canada: Ottawa

24
Greece: Athens:
Portugal: Lisbon
Russia: Moscow
Italy: Rome
Indonesia: Jakarta
Norway: Oslo
78. Where the FIFA World Cup 2018 going to held: Russia, Quatar(2022), Latest
2014(Brazil)
79. Which country was the winner of 2014 football world cup: Germany (Argentina 2nd )

80. Olympic 2016 going to be organized by: Brazil

81. Which is the South Asian nation that has prohibited the sale of cigarette in its territory?
-Bhutan (since 2004 AD), first in the whole world

82. 14. When did Girija Prasad Koirala, die?


Chaitra 7, 2066

83. When did Krishna Prasad Bhattarai, a founder leader of the Nepali Congress and
former Prime Minister pass away?
-20 Falgun, 2067

84. When did Sai Baba, a famous spiritual guru of India pass away?
-24 April, 2011

85. Which national figure of Nepal is known as Himalki Chhori?


Pasang Lhamu Sherpa

86. Approximately at what rate does temperature decrease with the increase in height?
1C/165 m

87. Where does the Nepal Rastra Bank submit its annual report to?
Ministry of Finance

88. Who is the second chairman/vice-chairman of national planning commission Nepal ?-Dr.
Min Bahadur Shrestha.

89. Who constructed the Shital Niwas that accommodates the present President Building?
Chandra Shumsher

90. For how many categories, Nobel prize awarded? 6

G. INTELLIGENCE QUOTATION
1. The group of termites: Colony

25
2. If an owl can fly over a night of distance of 50 KM, how it will be in a day & in night
together? 50 Km
3. 25 poles are placed in between 100/100 meters of each poles, what is the distance
between 1 pole & last pole: 2400
4. Ram walks 3 meter in the direction of east, turns south and walks 4 meter ahead. How
much far in distance is he from the original place? 5 Meter
Note: Pythagoras Rule; Hypotenuse= Square of Perpendicular+Square of Base

5. How many Squares are there in the given figures


a)

If, Row=Column
Ans: 5*5+4*4+3*3+2*2+1*1=55 squares
6. Simple Interest Formula= Principal(P)*Time(T)*Rate(R)
100
7. The total sum of angles in a Triangle: 180 Degree
8. Total Sum of angles in a Square or a Circle: 360 Degrees
9. Converting fraction into %: multiply by 100%
10. Converting % into fraction: Divide by 100
11. A father said to his son 'I was as old as you are at present at the time of your birth'. If
the father's age is 40 years now, the son's age?
20 Yrs
12. a & b are odd numbers, which is an even of the following
a) a+b b) a+b+1 c) ab d) ab+2
13. Shital does have Rupees R, She expenses Paisa P, How much money does she have
now?
a) R-P b) P-R c)100R-P d) 100R-P
100
14. The average of 5, 10, 15 and x is 20, what is the value of x
26
50
15. The sum of first 50 natural no? (sum of numbers from 1-50)
N*(N+1) =50*(50+1)/2, =1275
2
16. The product of two numbers is 48, sum of their 16; what is the smaller number?
4
17. If a boy covers 4km in 20 Mins, how much distance he covers in 45 mins?
9 Km
18. The sum of five consecutive numbers is nn, it the next two numbers are also included,
average will be:
Remain the same
Increase by 1
Increase by 1.4
Increase by 2
19. A's salary is 20% more than B's. By what % B's salary is less than A.
16.66%
20. It 30% of the number is 48, what is the next 70%?
112
21. The average numbers of 20 numbers is 0, among them, how many numbers in
maximum may be greater than 0.
19
20
1
0
22. Leap is the year which is divisible by 4 by full.

H. GENERAL ECONOMICS
1. The fundamental economic problem faced by all societies is:
a. unemployment
b. inequality
27
c. poverty
d. Scarcity
2. "Capitalism" refers to:
a. the use of markets
b. government ownership of capital goods
c. private ownership of capital goods
d. private ownership of homes & cars
3. The law of demand states that:
a. as the quantity demanded rises, the price rises
b. as the price rises, the quantity demanded rises
c. as the price rises, the quantity demanded falls
d. as supply rises, the demand rises
4. The price elasticity of demand is the:
a. percentage change in quantity demanded divided by the percentage change in
price
b. percentage change in price divided by the percentage change in quantity demanded
c. dollar change in quantity demanded divided by the dollar change in price
d. percentage change in quantity demanded divided by the percentage change in
quantity supplied
5. The goal of a pure market economy is to best meet the desires of
a. consumers
b. companies
c. workers
d. the government
6. In a market system, sellers act in ____________ interest, but this leads to
behaviors in ____________ interest.
a. self; self
b. self; societys
c. societys; societys
d. societys; self
7. The law of diminishing (marginal) returns states that as more of a variable factor
is added to a certain amount of a fixed factor, beyond some point:
a. Total physical product begins to fall
b. The marginal physical product rises
c. The marginal physical product falls
d. The average physical product falls
8. Which of the following is a characteristic of pure monopoly?
a. one seller of the product
b. low barriers to entry
c. close substitute products
d. perfect information
9. In pure monopoly, what is the relation between the price and the marginal
revenue?
a. the price is greater than the marginal revenue
28
b. the price is less than the marginal revenue
c. there is no relation
d. they are equal
10. The demand for labor is the same as the
a. marginal revenue product
b. marginal physical product
c. marginal cost
d. Wage
11. Which of the following IS a function of money?
a. medium of exchange
b. store of value
c. unit of accounting
d. all of the above
12. Which of the following is the most liquid?
a. a savings account
b. a 6 month CD
c. a home
d. Water
13. An increase in the money supply will cause interest rates to
a. rise
b. fall
c. remain unchanged
14. Who is the father of Economics ?
[A] Max Muller [B] Adam Smith [C] Karl Marx [D] None of these above
15. Nepal has followed the Mixed Economy (Capitalist+Communist)
16. Indicate below what is NOT a factor of production.
a) Labor
b) Capital
c) A bank loan
d) Land
17. Macroeconomics deals with:
a) Activities of individual units
b) Behaviour of firms
c) Economic aggregates
d) Behaviour of electronic industries
18. Microeconomics is not concerned with the behaviour of

29
a) Industries
b) Firms
c) Aggregate demand
d) Consumers
19. The study of inflation is part of :
a) Descriptive economics
b) Macroeconomics
c) Normal economics
d) Microeconomics
20. Inflation is:
a) a decrease in the overall price level.
b) A decrease in the overall level of economic activity
c) an increase in the overall price level.
d) an increase in the overall level of economic activity
21. An example of an indirect tax is:
a) a tax on profits
b) inheritance tax
c) VAT
d) Income Tax
22. Privatisation is the transfer of:
a) government businesses to the private sector.
b) publicly held stock to private individuals.
c) corporately owned businesses to individuals.
d) privately owned businesses to the government sector

I) MISCELLANEOUS, FROM BANKING & EBL


1. Hierarchy Theory of motivation Invented by: Mr. Abraham Maslow
2. Full form of DSCR: Debt Service Coverage Ratio, Net Operating Income/ total Debt
Service
3. Minimum value stock to be insured as per our banks rule:125% of Limit
30
4. What is the maximum tenure for Housing Loan as per Banks norm? 5-15 Yrs
5. Bank of the Year 2014: Global IME Bank Nepal (EBL got it on 2006)
6. A business firm is expected to have sufficient .. liquidity to meet its current
obligations that may arise during day to day operation.
a. long term b. Mid-term c. short term d. none of them
7. Higher.........indicates firms larger dependency on outside long term liabilities
a) DSCR b) Current Ratio c) TOL:TNW d)Liquid Ratio
8. Net Working Capital is calculated by following method:
a. Inventory + Debtors - Creditors
b. Inventory + Creditors - Debtors
c. Creditors + Debtors - Inventory
d. Debtors + Creditors Inventory
9. What are the basic Five Cs fundamental while credit analyzing?
a) Capacity b. Character c. Compliance d. Collateral e. Capital
10. Everest Bank Limited has started its Mobile banking operation since 26th September
2007. This service Bank on Wheels as a banking product is the first of its kind in
Nepal.
11. EBL is first bank that has launched e-ticketing system in Nepal. EBL customer can
buy yeti airlines ticket through internet.
12. EBL has introduced branchless banking system first time in Nepal to cover unbanked
sector of Nepalese society.
13. The name of web portal of Everest Bank Ltd for using ebanking facility is
www.netebl.com

14. What is rescheduling?


A.Extension of original time frame for the loan repayment.
B.The change in the name of product, timing, or loan repayment.
C.Change in the nature, timing, or original conditions of the loan.
D.Extension of original loan repayment.
15. What is restructuring?
A. the change in the nature, timing, or original conditions of the loan.
B.The extension of original time frame for the loan repayment.
C.The change of loan tenor, time frame for the loan repayment.
D.The change in the name of product, timing, or loan repayment.

16. Formulas
a) Current Ratio:
Current Assets/Current Liabilities
b) Liquid/quick Ratio:
(Current Assets-Inventory-prepaid expenses)/Current Liabilities
31
c) Account receivable Turnover ratio:
Net Sales/Account Receivable
d) Average Collection Period:
Account Receivable/Avg daily Credit sales
Or
Account Receivable*365 days/net Sales
e) Inventory turnover ratio:
Sales/Inventory
f) Fixed Asset Turnover Ratio:
Sales/Fixed Assets
g) Total Assets Turnover Ratio:
Sales/Total Assets
h) Net profit margin:
Net income/Sales
i) ROA:
Net income/Total Assets or net profit margin*total assets turnover
j) ROE:
Net income/Shareholders Equity

17. Which company has developed the software the EBL using currently? Infosys
18. NRB deputy governors: Mahaprasad Adhikari & Gopal Prasad Kafley
19. NRB governor: Chiranjibi Nepal from 22nd March 2015, 2071/12/08
20. Fixed Deposit Account is
(a) Cheque payable a/c (b) Term Deposit
(c) Non Interest bearing a/c (d) None of the above
21. Deposit Mix we mean
(a) Debt Equity Ratio (b) Composition of Deposit A/c
(c) CD Ratio (d) None of the above
22. The volume of money supply in the market is controlled with the help of:
(a) Fiscal Policy (b) Foreign Policy
(c) Monetary Policy (d) Credit Policy
CEO
23. By Account Payee Cheque, we mean
(a) Only Payable to the bearer (b) Only Payable to the drawer
(c) Only Payable to the account holder (d) Only Payable through bank a/c

24. What could be found in London, Dubai and Delhi. But no one can find it in America,
Japan and Germany?
-ONLY D

25. The sides of a triangle are in the ratio 3 : 5 : 7 and its perimeter is 30 cm. The length
of the greatest side of the triangle in cm is
(1) 6
(2) 10
(3) 14
(4) 16
26. . helps on fixation of repayment schedule & moratorium period.
a. Current Ratio b. DSCR c. DER d. TOL:TNW
32
27. A bank Can
(a) Provide loan to its promoters (b) Provide loan against immovable property
(c) Provide loan against its own share (d) Provide loan against guarantee of its
28. The risk of loss arising while carrying out the regular activities of the bank is
categorized as:
(a) Credit risk (b) Market risk
(c) Operational risk (d) Normal risk
29. The internal rate of return (IRR) is 10%. If the company can obtain finance from the
bank at 12%, should the project be undertaken?
(a) Yes (b) IRR and bank rate doesnt matter
(c) No (d) None of the above
30. For a Bank, which look after the revision of interest rate/liquidity risk: ALCO
Committee.

31. On the recommendations of the Finance Manager, the board of directors will accept
the project if-----

a) Benefit Cost Ratio is less than one


b) Net Present Value is greater than zero
c) Internal Rate of Return is less than cost of capital
d) Pay Back Period is greater than target period
32. Actual Sales minus Break Even Sales means-----
a) Profit on sales
b) Margin of safety sales
c) Loss on sales
d) Sales at which no profit or no loss is resulted
33. KYC means
a) Know Your Customer very well
b) Know Your existing Customer very well
c) Know Your prospective Customer very well
d) Satisfy yourselves about the customers identity and activities.
34. Hypothecation is applicable in the case of
a) Movable goods
b) Immovable property
c) Book debts
d) Corporate guarantee
35. Bancassurance is
a) An insurance scheme to insure bank deposits
b) An insurance scheme to insure bank advances
c) A composite financial service offering both bank and insurance
products
d) A bank deposit scheme exclusively for employees of insurance companies
36. Tele banking service is based on
a) Virtual Banking
33
b) Online Banking
c) Voice processing
d) Core Banking

37. WHICH SERVE AS LETTER OF GUARANTEE?


A. REVOLVING LC
B. RED CLAUSE LC
C. TRANSFERABLE LC
D. STANDBY LC
38. HOW MANY ARTICLES ARE THERE IN UCPDC 600?
A. 29 ARTICLES
B. 39 ARTICLES
C. 49 ARTICLES
D. NONE OF ABOVE
39. BASEL II RELATED TO?
A.CREDIT RISK
B.OPERATIONAL RISK
C.MARKET RISK
D.ALL OF ABOVE

J) ABBREVIATION
NBA: NON BANKING ASSESTS
NPL/NPA: NON PERFORMING LOAN/NON-PERFORMING ASSETS
DDA: DUE DILIGENCE AUDIT
CDD:CUSTOMER DUE DELIGENCE
FATF:FINANCIAL ACTION TAXK FORCE
PIN: PERSONAL INDENTIFICATION NUMBER
EBRD: EUROPEAN BANK FOR RECONSTRUCTION AD DEVELOPMENT
USAID: UNITED STATES AGENCY FOR INTERNATIONAL DEVELOPMENT

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PCA : PROMPT CORRECTIVE ACTION
BCBS: THE BASEL COMMITTEE ON BANKING SUPERVISION
RWE: RISK WEIGHTED EXPOSURE
CRM: CREDIT RISK MITIGATION
FINO: FINANCIAL INFORMATION NETWORK AND OPERATION
DRS: DISASTER RECOVERY SITE
UCPDC: THE UNIFORM CUSTOM AND PRACTICES FOR DOCUMENTARY CREDITS
SWIFT: SOCIETY FOR WORLDWIDE INTERBANK FINANCIAL
TELECOMMUNICATION
EPS: EARNING PER-SHARE
CAR: CAPTAL ADEQUACY RATIO
ATM: AUTOMATED TELLER MACHINE
EMI: EQUAL MONTHLY INSTALLMENT
FIU: FINANCIAL INTELIGENCE UNIT/FINANCIAL INFORMATION UNIT
RTGS: REAL TIME GROSS SETTLEMENT
SCT: SMART CHOICE TECHNOLOGY
KYC: KNOW YOUR CUSTOMER
ACU: ASIAN CLEARING UNION
BIBINI:BIDESI BINMAYA NIYAMAWAULI/NIYANRAN/NIYAM
FEER: FOREIGN EXCHANGE ENCASHMENT RECEIPT(B.B.N.:5)
ICC: INTERNATIONAL CHAMBER OF COMMERCE
MT: MESSAGE TEXT
ISBP: INTERNATIONAL STANBY PRACTISES
NPA/NPL: NONE PERFORMING LOAN /ASSESTS
NBA: NON BANKING ASSESTS
RWA: RISK WEIGHTAGE ASSESTS
SOL: SINGLE OBLIGER LIMIT
SLF: STANDING LIQUIDITY FACILITY
NAS:NATIONAL ACCOUNTING STANDARD
CIC: CREDIT INFORMATION CENTER
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DSCR: DEBT SEVICE COVERAGE RATIO
AML: ANTI MONEY LAUNDERING
IMF: INTERNATIONAL MONEYTORY FUND
MPBF: MAXIMUN PERMISSEABLE BANK FINANCE
UID: UNIQUE IDENTICATION NUMBER/UNIVERSAL INDENTIFIER
BIC: BANK INDENTIFIER CODE
IBAN: INTERNATIONAL BANK ACCOUNT NUMBER
CHIPS: CLEARING HOUSE INTER BANK PAYMENT SYSTEM
CHAPS: CLEARING HOUSE AUTOMATED PAYMENT SYSTEM
LIBID: LONDON INTERBANK BID RATE
LIBOR: LONDON INTERBANK OFFER RATE
MIBOR: MUMBAI INTERBANK OFFER RATE
FEDAN: FOREIGN EXCHANGE & MARKET DEALER ASSOCIATION OF NEPAL
NASDAQ:NATIONAL ASSOCIATION OF SECURITY DEALER AUTOMATED
QUOTATION
AER: ANNUAL EARNINGS RATE ON AN INVESTMENT.
APR: THE ANNUAL PERCENTAGE RATE OF INTEREST
ADR: AMERICAN DEPOSITORY RECEIPT.
ATS: AUTOMATIC TRANSFER SERVICE ACCOUNT
OTC: OVER THE COUNTER
UTC: UNDER THE COUNTER
BKE: BILATERAL KEY EXCHANGE
FOB: FREE ON BOARD
POS:POINT OF SALE

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