GENERAL ACTIVITIES OF

RASTRIYA BANIJYA BANK

An Internship Report

Submitted By

Kripa Dahal

Nepal Commerce Campus

Exam Roll No: 14375/14

T.U. Reg. No: 7-2-25-1167-2014

Submitted To

Office of the Dean

Faculty of Management

Tribhuvan University

In the partial fulfillment of the requirements for the degree of

Bachelor in Business Administration (BBA)

New Baneshwor, Kathmandu

October 2018
 RECOMMENDATION

I hereby recommend that the internship report prepared under my supervision by

Ms. Kanchan Kafle entitled “General Activities of Rastriya Banijya Bank”
accepted as fulfilling in partial requirements for the degree of Bachelor of Business
Administration. In my best knowledge this is an original work and is forwarded for
the further evaluation.

_________________
Signature

Prof. Dr. Jeevan Kumar Bhattarai

Chairman

BBA Research Committee

ii
 Declaration
I hereby declare that the internship report “General Activities of Rastriya Banijya
Bank” prepared by me is my own original work and any assistance that I received
while preparing this report is fully acknowledged and disclosed in the report. This
report has been prepared under the prescribed format for the purpose of partial
fulfillment of the requirements for the degree of Bachelor of Business
Administration (BBA) under the Faculty of Management, Tribhuvan University and
will not be used for other purposes. I alone am responsible for any deficiencies that
may have remained in this report.

Name: Kanchan Kafle

Signature:

Date: October 2018

iii
 ACKNOWLEDGEMENTS
The internship report on the “General Activities of Rastriya Banijya Bank” has
been prepared in the partial fulfillment of the requirement for the degree of Bachelor
in Business Administration. On the journey of reaching this final step of my work,
I would like to thank all those who have directly and indirectly helped and supported
me in many ways. In other words, I will not be able to justify my work without
acknowledging those who have significantly contributed to my internship report, so
I want to express my heartfelt thanks to all of them. It has been a matter of great
pleasure for me to complete this internship report under the supervision of Mr.
Jeevan Kumar Bhattarai, Campus Chief of Nepal Commerce Campus. I appreciate
his kind guidance, valuable supervision, constructive comments and inspiration
during the preparation of this thesis.

I am equally gratified to Mrs. Reena Gurung, Mrs. Sochita Acharya, Ms. Rohini
Shrestha, Mr. Shyam Bhakta Shrestha and all the staffs of Rastriya Banijya Bank,
Baneshwor Branch, under whose supervision, guidelines and continuous support I
completed my internship.

Similarly, I would like to express my debt of gratitude to my family members for

their continuous inspiration and support during the entire period of the study. I owe
thanks to my friends and colleagues for helping and supporting me in many ways.

Finally, I would not want to state that this thesis is perfect but may have various
limitations and shortcomings; nevertheless, I have tried my best. Any suggestions
for the reports better would heartily be appreciated.

October 2018

Kanchan Kafle

iv
 TABLE OF CONTENTS
Cover Page i
Recommendation Letter ii
Declaration iii
Acknowledgments iv
Table of Contents v
List of Tables viii
List of Figures ix
Abbreviations x

Chapter I: Introduction 1-5

1.1 Background 1
1.2 Objectives of Internship 2
1.3 Methodology of the Study 2
1.3.1 Organizational Selection 3
1.3.2 Placement 3
1.3.3 Duration 3
1.3.4 Activities Done 4

Chapter II: Brief Introduction of the Banking Industry 6-10

2.1 Introduction to Banking Sector and Bank 6
2.2 History of Banks in Nepal 7
2.3 Meaning of Commercial Bank 8
2.4 Development of Commercial Banks in Nepal 8
2.5 Functions of Commercial Banks 9
2.6 Importance of Commercial Bank 9

Chapter III: Brief Introduction of Rastriya Banijya Bank 11-27

v
3.1 Introduction of Rastriya Banijya Bank 11
3.2 Vision, Mission, Values and Objectives of Rastriya Banijya Bank 12
3.2.1 Vision 12
3.2.2 Mission 12
3.2.3 Values 12
3.2.4 Objectives of Rastriya Banijya Bank 13
3.3 Share Ownership 13
3.4 Organizational Structure 13
3.5 Board of Directors of Rastriya Banijya Bank 15
3.6 Management Committee 15
3.7 Products and Services offered by RBB 16
3.7.1 Deposit 16
3.7.2 Loans and Advances 20
3.7.3 Remittance 24
3.7.4 New Services by RBB 24
3.7.5 Other Services 27

Chapter IV: Analysis of Activities Done and Problem Solved 29-37

4.1 Customer Service Department 29
4.2 Major Functions Carried under CSD 30
4.2.1 Customer Counseling 30
4.2.2 Account operation 31
4.2.3 Distribution Activities 33
4.2.4 Problems Solved in Customer Service Department 35
4.3 Electronic Cheque Clearing 36
4.3.1 Activities Carried Out 37
4.3.2 Problems Solved in Electronic Cheque Clearing 37

Chapter V: Conclusion and Lession Learnt 38-40

vi
5.1 Conclusion 38
5.2 Lesson Learnt 39
5.2.1 Human Resource Relationship 39
5.2.2 Develop Communication Skills 39
5.2.3 Knowledge about the Organizational Environment and Work
Culture 39
5.2.4 Buildup Confidence 40
5.2.5 Importance of Time and Punctuality 40

References

Annexes

vii
 LIST OF TABLES

Table 1.1: Placement of Internship 3

Table 3.1: Board of Directors of Rastriya Banijya Bank 15

Table 3.2 Management Committee of Rastriya Banijya Bank 15

Table 3.3 Savings Deposit and Interest Rates 18

Table 3.4 Fixed Deposits and Interest Rates 19

Table 3.5 Call Deposit and Interest Rates 21

Table 3.6 Foreign Currency Deposits and Interest Rates 21

Table 3.7 Loans and Interest Rates 23

viii
 LIST OF FIGURES

Figure 3.1 Organizational Structure of RBB 14

ix
 ABBREVIATIONS

ABBS Anywhere Branch Banking System

ATM Automated Teller Machine

BAFIA Bank and Financial Institutions Act

BBA Bachelor of Business Administration

BLB Branchless Banking

CA Company Act

CDM Cash Deposit Machine

CEO Chief Executive Officer

CSD Customer Service Department

ECC Electronic Cheque Clearing

Ltd. Limited

NPR Nepalese Rupee

RBB Rastriya Banijya Bank

RBBL Rastriya Banijya Bank Limited

USD United Stated Dollar

x
 CHAPTER I

INTRODUCTION

1.1 Background
Internship is the process of working as an assistant or a trainee to gain practical experience
in a job. It is a job taken by a student in order to learn a profession or trade. In order to
nourish the students with the experience of actual working environment, internship has
been made as mandatory requirement for the successful completion of the four-year
Bachelor of Business Administration (BBA) under Tribhuvan University. Internship is an
opportunity to observe, learn, understand and participate in the corporate culture. As
internship nourishes the student with pragmatic concept of job design and job requirements.
It is often regarded as the first step in career development.

The selection of the organization for intern should match the field of specialization and
interest of the intern. This helps the interns in easily understanding the logic behind the
operations carried out in the organization. It provides the intern an opportunity to
understand how the knowledge acquired through the formal classroom discussion sessions
is applied in the real working conditions. For a student specializing in finance, internship
in financial institutions is the best choice.

Commercial banks are big business houses that carry out a large number of operations.
Therefore, commercial banks have the largest scope of study. At a time when hundreds of
finance students are required to work as interns, commercial banks provide the largest
number of placement under different branches and departments. Few of the banks even
have the provisions for interns with pre-defined schedule allocated for rotation around most
of the department during the period of internship. This approach focuses on the
generalization concept where the interns obtain a general overview about each of the
department they get a chance to be in. The major disadvantage of this approach, however,
lies in the fact that interns might be limited to being mere observers.

1
Rastriya Banijya Bank Ltd. focuses on generalization rather than specialization of the
interns. For this reason, an intern is placed in more than one department throughout the
internship period.

Even though the interns are not jobholders, they are given the opportunity to work as if
they are the assigned personnel in that post. The two-month period of internship in different
departments was an invaluable opportunity to gain the overall knowledge of bank and the
operations involved in it. This report, therefore, explains the organizational structure,
working methods, operational procedure, and problems which arose in the day-to-day
transactions of Rastriya Banijya Bank, New Baneshwor Branch.

1.2 Objectives of Internship

The major objective of this internship program was to gain practical exposure of real life
work environment. Its aim was to accumulate learning as well as working experience. The
main objective of this report, therefore, is to explain the major facts learnt during the
internship period. At the same time, it intends to highlight the problems and provide
recommendations for solving the problems faced by interns as well as the concerned
departments’ staffs of the bank. Besides that, the following are other general objectives of
this study:
 To understand the corporate culture of a commercial bank.
 To develop customer relation skills.
 To mold the classroom theoretical discussions with practical experience to develop
the skills demanded by the financial market.
 To develop appropriate managerial skills and attitude to tackle real life problems
arising in the organization.
 To be familiar with the banking process, rules, and regulations and banking
conditions in Nepal.

1.3 Methodology of the Study

The methodology explains the efforts undertaken for selection of organization, placement
at department, duration of internship and general overview of the activities performed
during the internship period.

2
1.3.1 Organizational Selection
I have selected Rastriya Banijya Bank Ltd., Baneshwor Branh for the internship program
recommended by BBA, Nepal Commerce Campus as a partial fulfillment of Tribhuvan
University. I selected RBB for learning various aspects of working environment with the
aim to build confidence by developing interpersonal and managerial skill in the real field
which could later become a source of inspiration in my professional career.

1.3.2 Placement
During the internship period of eight weeks, I was placed in various departments of main
branch office of RBB which helped me in having the knowledge of the day-to-day banking
transactions and its overall operation in various departments. I was able to learn and interact
with the people in the organizational environment which helped me to get familiarized with
the organizational settings.

Table 1.1: Placement of Internship

Weeks in internship
Department
1st 2nd 3rd 4th 5th

CSD +++++

Locker +++++ +++++

Cash +++++ +++++

Department

1.3.3 Duration
The duration of internship period has been defined as eight weeks by Tribhuvan University.
So I had completed 2 months in the Rastriya Banijya Bank Limited, Baneshwor. During
this period, I spent few days in observing and analyzing the bank environment. I spent my
whole internship in those departments which helped me to have insight knowledge about
shares and its working procedure and last few days in collecting the necessary information

3
and data which could help me in preparing my internship report. It enabled me to learn
about the bank culture, work environment and working procedure of RBB.

1.3.4 Activities Done

a) Customer Service
The accounts opening responds for the inquiries or the complaints directly from the
customers. Following are the major functions that I performed in this department:

 To respond to the customer queries.

 To providing forms and assist in filling them.
 Account Opening form (Individual Accounts, Saving Accounts, Fixed
Deposit Accounts)
 Account Closing forms
 Internet banking forms
 Debit card forms
 Balance enquiry of customer accounts.
 Customer Account’s statement printing.
 To accept requisitions for cheque books.
 Printing, Binding, Recording, Sorting and Distribution of cheque books.
 To distribute the ATM cards after their verification to the customers.
 Filing the records of accounts maintained according to the account numbers in
ascending order.

b) Clearing Department
The clearing department deals with the processing of cheques so that the funds are deducted
from the payer’s account and put into the payee’s account. The clearing of cheques is done
for its clients, regardless of whether or not the cheque originates from the same commercial
bank. Following are the major functions that I performed in this department:

 Endorsing the cheque.

 Keeping record of clearing cheque as well as returned cheques.
 Scan the cheques and send them to the head office.

4
2. Locker Department
The Locker department is concerned with the safekeeping of the customers’ belongings in
their respective lockers. Following are the major functions that I performed in this
department:

 Record keeping of the entrants into the locker room.

 Assisting in filling out the forms for new customers willing to acquire the locker
room service.
 Filing and keeping up to date with the record of the entries into the locker room.

5
 CHAPTER II

BRIEF INTRODUCTION OF THE BANKING

INDUSTRY

2.1 Introduction to Banking Sector and Bank

The banking sector is the section of the economy devoted to the holding of financial assets
for others, investing those financial assets as leverage to create more wealth, and the
regulation of those activities by government agencies.

Bank is an organization offering financial services, especially loans and the safekeeping of
customers’ money until required and making loans at interest. It is a financial institution
that accepts deposits and channels the money into lending activities.

According to Bob Hope, “A bank is a place that will lend you money if you can prove that
you don't need it.”

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

Banks are working as the credit creator, moneymaker, currency exchanger, money
transformer, etc. in the country. Holding of financial assets is the core of all banking, and
where it all began. A bank holds assets for its clients, with a promise that the money may
be withdrawn if the individual or business needs said assets back.

Traditionally, banks leverage the money in their vaults as loans, earning money from the
interest rates charged on those loans. The banking sector always attempts to diversify its
risks by investing as widely as possible which assists in preventing an unexpected loan
default from sinking the entire bank.

Because banks are the underpinning of a modern economy, governments naturally have
laws in place to prevent banks from engaging in dangerous activity that threatens the
economy. Confidence in bank is critical because it is where public keep deposits and obtain

6
credit from. The banking sector's core is trust. Without it, no clients would deposit money
making it unable to give loans, invest, and drive economic growth; regulation is used to
create that trust.

2.2 History of Banks in Nepal

The history of bank development is not long in Nepal. It is difficult to trace the correct
chronological history of banking system in Nepal before 800 AD due to lack of historical
records. However, goldsmiths, merchants and local moneylenders were considered ancient
bankers of Nepal.

Sankhadhar Sakhwa, sudra (low cast) merchant, cleared all the debt of Nepalese people in
879 and started new era (20 October 879 AD) known as Nepal Sambat. It is an evidence
of money lending and borrowing practice in ancient Nepal. Towards the end of 9th century,
Gunkam Dev had borrowed money to rebuild the Kathmandu Valley.

There are evidence of professional moneylenders and bankers during Malla regime in 12th
century. This was particularly due to trade with Tibet. However, due to lack of regulatory
measures interest rates were excessively higher. Kausi Toshi Khana established during the
time of King Prithvi Narayan Shah (1723-1755) was considered the first banking institution
of Nepal. The Tejarath Adda, established in 1880, was the first formal institutional banking
in Nepal. However, it did not offer deposit services but granted loans to the general people
and government employees keeping valuables as collateral such as gold, silver, and
employees’ salaries.

Though the Tejarath Adda was an important institution to meet the credit needs of the
borrower, there were still large numbers of people in the society out of reach of its services
as banking services were too limited. The role of local lenders was so vital to cater credit
needs of other people. The way of managing surplus money such as use of clay pot was
risky, unsafe, and inconvenient. The need for full banking service firms were realized soon
because of following reasons:
a) Public’s need of wider range of banking services,
b) Extending trade to international boundary, and

7
c) Independence movement against British regime in India so that Rana regime felt
safe to keep the money in the country.

As a result, Nepal Bank Limited was established in November 15, 1937 AD (1994 BS). It
is taken as the milestone of modern banking of the country. Nepal Bank marks the
beginning of a new era in the history of the modern banking in Nepal.

2.3 Meaning of Commercial Bank

A commercial bank is a financial institution that provides various financial service, such
as accepting deposits and issuing loans. Commercial bank customers can take advantage
of a range of investment products that commercial banks offer like savings accounts and
certificates of deposit. The loans a commercial bank issues can vary from business loans
and auto loans to mortgages.

A commercial bank is authorized by law to receive money from businesses and individuals
and lend money to them. Commercial banks are open to the public and serve individuals,
institutions, and businesses. Banks are regulated by federal and state laws depending on
how they are organized and the services they provide. Commercial banks are also
monitored by Nepal Rastra Bank in Nepal.

2.4 Development of Commercial Banks in Nepal

Nepal bank limited was established in private sector. It was established with profit motive;
later on the Nepal Rastra Bank, Central Bank of Nepal was established in 1956. In order to
make the banking system more systematic and organized, many Acts and Laws were made.
Subsequently Rastrya Banijaya Bank with 100% government ownership was established
on 10th Magh 2022 B.S. Similarly, under the Agriculture Development Bank Act 2014 B.S.
Agricultural Development Bank was established on 7th Magh 2024 B.S. Later on
Government became liberal and flexible, and amended many of its Acts and Rules. A
number of joint venture banks with the foreign investments started to come and operate in
Nepal. Consequently, Nepal Arab Bank (Nabil Bank) was Established in 1984. Similarly,
Nepal Indosuez Bank was established as a joint venture between Nepal and France in 1984.
8
Nepal Gindlays Bank (presently known as Standard Chartered Bank) was established in
1987. As the country followed economic liberalization, there was massive entrance of
foreign banks in Nepal. Himalayan Bank Limited as a joint venture with Habib Bank
Limited of Pakistan was established in 1993. Likewise, Nepal SBI Bank as a joint venture
with State Bank of India was established in 1993.

Nepal Bangladesh Bank as a joint venture, Bank of Kathmandu as a joint venture with
SIAM Commercial bank of Thailand established in 1995 and Everest Bank, established as
the joint venture with Punjab National Bank in 1994 are the examples of the expansion of
the banking industry in Nepal. And by 2010 Nepal has opened its doors for the foreign
banks to operate in full ownership. Presently there are 28 Commercial Banks that are
operating in Nepal.

2.5 Functions of Commercial Banks

A commercial bank is authorized to serve the following functions:

a) Receive deposits - take money in from individuals and businesses (called

depositors)
b) Disburse payments - make payments upon the direction of its depositors, such as
honoring a check
c) Collections - a bank will act as your agent to collect funds from another bank
payable to you, such as when someone pays you by check drawn on an account from a
different bank
d) Invest funds in securities for a return
e) Safeguard money - banks are considered a safe place to store your wealth
f) Maintain and service savings and checking accounts of its depositors
g) Maintain custodial accounts - accounts controlled by one person but for the benefit
of another person, such as a trust account
h) Lend money

2.6 Importance of Commercial Bank

Today banks have gained real trust in the public. The functions of bank are not confirmed
to just accepting deposits and giving loans. They render a wide range of services covering

9
different problems of society. Also, banking system is the backbone of economic
development and it provides various services to make a strong financial strength. So, it
plays a very important role in a country, which are as follows:

a) Capital formation: Capital is the main source for the development of the country.
Banks collect deposit form public and makes huge capital for investment in productive
sector.
b) Economic development: Banks provides fund for operation, expansion and
development of trade and industry, which promotes economic development of country.
c) Transfer of money: Bank transfers money through one place to another place by
using different means of payment that are telegraphic transfer, mail transfer, bills of
exchange, bank draft, letter of credit, promissory note, etc.
d) Creation of employment: Bank provides loans to the farmers, labors, industrialists
and other unemployed people to fulfill their objectives. So, it creates employment and helps
to minimize unemployment problem of the country.

10
 CHAPTER III

BRIEF INTRODUCTION OF RASTRIYA BANIJYA

BANK

3.1 Introduction of Rastriya Banijya Bank

Rastriya Banijya Bank (RBB) is fully government owned, and the largest commercial bank
in Nepal established on January 23, 1966 (Magh 10, 2022 BS). Earlier constituted under
RBB act 2021 with the full ownership of the government of Nepal, the Bank has been
running under Bank and Financial Institute Act (BAFIA) and Company Act (CA) 2063 at
present. The Bank licensed by NRB as an 'A' class commercial Bank of the country, has
grown up as an indispensable component of the Nepalese economy.

RBB has been contributing to socio economic development of the country for the last four
and half decades. The Bank has currently entered into 51 years of service. RBB provides
various banking services to a wide range of customers they include elite to poor individuals,
institutional customers, and the customers from industry / business communities.

RBB provides quality banking services, along with aim to touch the life of each and every
individual customer. It has highly focused on customized service and competitive pricing,
to provide extended valued service at competitive pricing.

The bank is providing customer-friendly services through its Branch Network. All the
branches of the bank are connected through Anywhere Branch Banking System (ABBS),
which enables customers for operational transactions from any branches. The large
presence and vast resource base have helped the Bank to build strong links with trade and
industry. With an aim to help Nepalese citizens working abroad, the bank has facilitated
Web based online remittance product “RBB Remit which enable quick remittance of funds
by the Nepalese citizens in countries like UAE, Kuwait, Bahrain, Qatar, Saudi Arabia,
Malaysia, Singapore and U K. Nepalese citizen remitting money and advising banking
related services. The Bank has remittance facility to the abroad.

11
RBBL which has made glorious history of contributing for the monetization of the
economy, eliminating dual currency in the market, initiating preliminary financial literacy,
help flourish industrial, commercial and financial sector of the country has now emerged
as a modern and strong financial institute of the country. The Bank with 2600 hands has
expanded its wings in the most part of the country through multiple distribution outlets of
179 branches, 17 counters, 93 branch less banking (BLB) and 118 ATMs. The Bank with
the highest public confidence- reflected in the highest deposit base and growing demand
for branch establishment in the various parts -has stood as a pyramid in the financial arena
of the country. The Bank with as many as 1.7 million satisfied /direct customers ranging
from poor to elite ones and millions of indirect ones has drawn important imprint in the
picture of country's economy through its significant involvement in the best use of its
resources to enhance the production, income and employment opportunities. The Bank is
fully committed to contribute its best for the socio economic development of the country
and people in the days to come.

3.2 Vision, Mission, Values and Objectives of Rastriya Banijya Bank

3.2.1 Vision

"To provide innovative banking services to everyone, every time and everywhere for the
economic development of the nation."

3.2.2 Mission

"To provide easy and innovative banking products and services for our customers by
implementing one stop service concept from our wide network using our modern
technology qualified human resources in competitive environment. We always look for the
benefit of the local communities supporting entrepreneurship, social responsibility and
economic prosperity of the nation."

3.2.3 Values
RBB will always operate according to the listed norms and values:
a) Customer Service, Security & Respect
b) Transparency in Operation

12
c) Professionalism in Management
d) Corporate Governance in Organization
e) Role of Corporate Citizen in Society

3.2.4 Objectives of Rastriya Banijya Bank

The objectives of Rastriya Banijya Bank are as follows:
a) Focus on providing innovative financial services.
b) Increase in capital base of the Bank by meeting the minimum capital requirement.
c) Business growth and increase in market share.
d) Enhance operational efficiency.
e) Sustainable increase in profits.
f) Focus on empowerment of deprived class.

3.3 Share Ownership

The share ownership in Rastriya Banijya Bank (RBB) is fully government owned, and the
largest commercial bank in Nepal.

3.4 Organizational Structure

The head office of the bank is located at Singhadurbar Plaza, Kathmandu . The Board of
Directors is responsible for policy making & guidance to the management. The government
nominates all board members including the Chairman. The executive power is vested in
the Chief Executive Officer (CEO). The Bank has 19 departments in its head office and 5
regional offices across the five development regions of the country.

RBBL has the largest branch network in Nepal, covering 66 branches in the mountainous
region, 69 in Terai region, and 23 in the Kathmandu Valley. The Branch Operations

13
Department is responsible for supervising the 179 branch network. The Internal Audit
Department monitors the work of the branches and regional offices.

Figure 3.1 Organizational Structure of RBB

14
3.5 Board of Directors of Rastriya Banijya Bank

Table 3.1: Board of Directors of Rastriya Banijya Bank

S.No Board of Directors Designation

Mr. Mahendra Man

1 Chairman
Gurung

Mr. Nirmalhari
2 Director
Adhikari

Mr. Rabindra Lal

3 Director
Shrestha

4 Mr. Janak Kumar Baral Director

Mr. Bidhyawaridhi
5 Director
Sigdel

Mr. Arjun Bahadur

6 Director
Adhikari

Dr. Madhav Prasad

7 Director
Dahal

Mr. Kiran Kumar Director

8
Shrestha (CEO)

3.6 Management Committee

Table 3.2 Management Committee of Rastriya Banijya Bank

Designation Name Position

15
 Chief Executive Officer Kiran Kumar Coordinator
Shrestha
Acting Deputy Chief Executive Kaviraj Member
Officer Adhikari
Deputy General Manager Keshav Prasad Member
Lamsal
Deputy General Manager Tek Raj Joshi Member

Member Secretary Mahendra Prasad Member

Awasthi

3.7 Products and Services offered by RBB

RBB is never back in providing the best products and services to meet the requirement of
its customers, be that the existing ones or potential customers. RBB is indeed successful to
provide these entire products through the analysis of the customer feedback form.
Customer’s satisfaction is the paramount driver at RBB.

The different products and services offered by RBB are as follows:

3.7.1 Deposit

Accepting Deposit is the primary function of every commercial bank. RBB also provides
the services of collecting deposits from its customers. Collections of deposits are in
different forms:

a) Current Account: RBB offers a wide range of products

and services designed to make banking easier and to match each and every customer's
requirements. This account is non-interest bearing account. They are offering various
flexible payment methods to allow customers to distribute money directly to others. There
is no limit for withdrawal and deposit in this account. They provide internet user login for
this account in case of single signatory. The features of Current account are as follows:
 Withdrawal Below Minimum Balance
 Extended Banking Hours in Kathmandu Valley Branches

16
 Standing Instruction
 Cash Management
 Free Cheque book
b) Savings Account: RBB saving account is a deposit account held at a bank
maintained by a customer for the purpose of accumulating funds over a period of time
while earning an interest. Saving account can be opened in NPR and for the Nepalese
citizen and USD for foreign citizens with valid password and job appointment letter.
Nepalese citizen who have foreign currency source of income they can open foreign
currency account.
The features of Saving Account are given below:
 Attractive Interest Rate
 Affordable Balance
 Unlimited Withdrawals/Deposits
 Withdrawal Below Minimum Balance
 Extended Banking Hours in Kathmandu Valley Branches
 Free Cheque book
The types of savings account offered by RBB along with interest rates are as follows:
Table 3.3 Savings Deposit and Interest Rates
Savings % per annum

Normal Saving 2.25

RBB Special Saving 4.00

RBB Gold Saving 4.00

RBB Diamond Bachat Khata 4.00

Karma Yogi Bachat Khata 4.00

Maha Laaxmi Bachat Khata 4.00

Chuna Muna Bachat Khata 4.00

17
 Teachers Bachat Khata 4.00

c) Fixed Deposit: RBB has introduced several innovative

schemes under Fixed Deposit designed to cater to the needs of various segments of
customers to meet your specific requirement. Tenure ranging from three months to five
years, fixed deposit at Rastriya Banijya Bank allows customers to diversify their portfolio
to best suit their investment plan. The features of fixed account are as follows:
 Attractive Interest Rate
 Wide Options of Tenure
 Convenient Account Opening
 Auto Renewal Possible
 Loan Facility upto 90% of Deposit Amount
 Free Chequebook

Table 3.4 Fixed Deposits and Interest Rates

Normal Fixed Deposits % per annum

3 months 5.50

6 months 6.00

1 year 6.25

13 to 18 months 6.5

2 years 6.75

3 years 7.00

RRB Special Fixed Deposits % per annum

1 year 6.5

18
 13 to 18 months 6.75

2 years 7.00

3 years 7.5

37 months to 4 years 8.00

60 months
8.5

RBB Corporate Fixed Deposit % per annum

1 year 6.5

2 years 7.25

3 years 7.5

Corporate bulk deposit 11.00

RBB Platinum fixed deposit(1 yr)

8.75

RBB Anniversary Fixed Deposit

8.50

RBB Achhayakosh Fixed Deposit

8.50

RBB Golden fixed Deposit(corporate) 8.5-9.5

d) Call deposit: Call deposit accounts are those accounts where customer park high-
volume short term deposits. These accounts pay interest to account holders based on the
rate negotiated with the bank. Cheque books will be provided to the call account holders

19
to withdraw cash. Rastriya Banijya Bank opens call deposit accounts in Nepali Rupee and
various other convertible foreign currencies.
Table 3.5 Call Deposit and Interest Rates

Call Deposit % per annum

Normal call 2.25

Institutional call 2.25

e) Foreign Currency Deposits: RBB accepts foreign currency deposits at attractive rates
of interest. Foreign currency lending to exporters at competitive rates is also available. It
also provides certain facilities for NRN.

Table 3.6 Foreign Currency Deposits and Interest Rates

Saving % per Fixed % per

annum annum

USD 0.90 1 year Negotiable

EURO 0.75 Above 1 year Negotiable

Other 0.75 Above USD Negotiable

10000 and
equivalent

3.7.2 Loans and Advances

RBB provides credit on competitive terms by way of term loans as well for financing
working capital needs of all kinds of productive and income generating activities. The loans
and advances provided by RBB can be broadly classified into two categories:

20
 a) Business Loan: The business loan provides finance to support or expand existing
business and also to start up a new business. RBBL provides full range of banking solutions
to meet borrower’s financing needs.
i.Funded Loan:
 Overdraft / Hypothecation Loan
 Pledge Loan
 Term Loan
 Project Loan
 Trust Receipt Loan
 Export Loan
 Bills Purchase (Clean bill)
 Loan for Infrastructure based Industries
 Consortium Loan
ii.Non-Funded Loan
 Letter of Credit
 Bank Guarantee
b) Retail Loan: Retail loan provides finance to fulfill the personal needs of borrowers.
The types of retail loan offered by RBB are given below:
 Housing Loan
 Vehicle Loan
 Hire Purchase Loan
 Educational loan
 Apartment Loan
 Loan Against Gold
 Loan against fixed deposit receipt
 Loan against the government bond
 Loan against shares
 Loan against the first class bank guarantee
 Rastra Sewak Loan
 Teachers Loan

21
 Personal Loan

Table 3.7 Loans and Interest Rates

Working Capital Loan % per

annum

Overdraft 3.00-5.5

Hypothecation 3.00-5.5

Pledge loan 3.5-5.5

Term loan % per

annum

Industrial/ commercial loan 3.00-5.5

Housing/ Real estate loan 3.00-5.5

Loan against gold and silver 6.00-7.00

Loan against government bond 2.00-4.00

Loan against RBB’s fixed deposit Coupon+2.00

Loan against first class bank guarantee 4.00

Priority sector loan 4.00

Deprived Sector Loan % per

annum

a) Individual 3.00

b) Institutional 2.00-4.00

22
Agriculture loan 2.5-4.5

Trust receipt/ import loan 2.0-3.0

Export loan 1.00-3.00

Export refinancing As per the

directions of
NRB

Hire purchase loan 4.5-6.00

Refinancing 2.00-4.00

Contract Loan
3.00-4.00

Home Loan % per

annum

Up to 5 years 3.00-4.00

Up to 10 years 4.00-5.00

Up to 15 years 5.00-6.00

Mahalaxmi home loan

(10 yrs) 3.00-4.00
(15 yrs) 4.00-5.00

Other Loans % per

annum

Auto loan 3.00-4.00

23
 Teachers loan 3.00-4.00

Rastra Sewak loan 3.00-4.00

Educational loan 3.00-4.00

Loan against share 4.00-6.00

Personal loan 5.00-6.5.00

Mortgage Loan 3.5-6.50

Consortium loan As per

agreement

3.7.3 Remittance

Remittance can be made to any part of the world by way of SWIFT Transfer instantly in
addition to the conventional facilities like demand drafts, Travelers’ cheques etc. RBB
facilitates both Inward and Outward remittance.

Rastriya Banijya Bank (RBB) has operated online web based remittance system, where by
money can be sent to Nepal from Worldwide. Payments can be collected from more than
163 branch offices of the RBB. RBB has made associations with the foreign agencies for
direct Remittance through RBB Remit whereby Nepali citizens & other people at Qatar,
UAE and Dubai can send money to Nepal instantly.

The remittance facility, however is not available in all the branches of RBB. The Bagbazar
Branch offers the facility whereas the Baneshwor Branch lacks the service.

3.7.4 New Services by RBB

a) Branchless Banking: RBB has deployed a Branchless Banking (BLB) System that
is capable of providing Retail Banking features such as Cash Deposit/Withdrawal, Bill
Payments, Fund Transfers and Inquiries to the RBB Customers. Customers are benefited

24
 by BLB in the following ways:
 Service provided at their doorstep/ village
 Availability of Basic Banking Services throughout the day
 Hassle free transaction for the villagers as there are no vouchers
 Familiarity in dealing with their own person
 Reduces the cost of transaction

b) Cash Deposit Machine (CDM) Machine: RBB launched a self-service terminal that
lets customers make cash deposits and payment transactions to RBB accounts. Now
customers’ dealings in cash are become an easy chore. Our CDM services are available
24/7 in a week. All successful transactions are immediately credited and customers will be
issued an advice slip confirming the transaction. To use the CDM, customers might not
worry on any card (debit-card issued by RBB) or any vouching at the bank counter. They
only required the account number to deposit and name for conformation. The services
available are:
 Cash deposit
 Cash deposit to third party accounts

c) Internet Banking: Rastriya Banijya Bank facilitates banking with a click of a mouse by
which customers can track their account from anywhere in the world. RBB has robust,
instant, secured and reliable banking solution for its clients. The services under internet
banking are as follows:

i.Enquiry:
 General Information: Information about the customer
 Account Information: Information about selected customers
 Account Statement: Account statement of the specified period
 Interest Statement: Statement of calculated and posted interest
 L/C List: List of L/Cs outstanding
 G/T List: Outstanding guarantee list
 TR Loan List: Details of Trust Receipt (TR)
 Customer Details: Detail information of customer

25
  Obligor Report: Obligor Report of the customer
 User History: Detail login history

ii. Message

 From Bank: Message sent by the Bank to the customer

 To Bank: Messages to the Bank by the customer

iii. Utilities

 Change Password: To change password

 Create New User: The corporate customer can create new user for his/her account
 Edit/Drop User: The corporate customer can edit/drop user for his/her account

d) RBB Mobile Pay Service: RBB is providing Mobile Banking Financial service with its
service powered by PayBill (P) Ltd. The Customer of RBB can pay utility bills, shop
online, buy tickets, send gifts, pay bills and even transfer money through the mobile phone.
It is easy, simple and secure. The following service are available:

i.Nepal Telecom Pin less Top-up - NTC Prepaid, Postpaid, Landline, ADSL
ii.Recharge pins purchase - NTC GSM/CDMA, NCELL, DISHHOME
iii.Bill Payments - Subisu cable & internet bills
iv.Payments on Retail outlets - Dot Fashion, Vesper house, Bhumi restaurant, etc.
v.Online shopping - Muncha.com, CG Digital, QFX, many more
vi.Person to Person Funds transfer

e) Mobile Banking: Rastriya Banijya Mobile Banking provides convenient mechanism

and quick access to banking services for Rastriya Banijya Bank customers from their
mobile devices. The system is a SMS based which can be used by the both Nepal Telecom
as well Ncell telecommunication subscribers. The mobile banking customer can keep an
eye on their financial transactions as well as carry out secure financial transaction from
anywhere, anytime. The main features of the Mobile Banking services are Balance
Enquiries, Last Transactions details, Transactions alerts, e-recharges/bill payments/top up
to utilities like NTC prepaid/postpaid/landline/ADSL, NCELL prepaid/postpaid, inter
branch funds transfer, etc.

26
 Rastriya Banijya Mobile Banking is also integrated with fonepay network and eSewa
mobile wallet, which enrich our customer with more enhance and value added services like
inter banks funds transfer, global merchant payments and cash out from local merchants.
Customers can use the mobile banking service from the simple mobile handset through
plain SMS and they can download Rastriya Banijya Mobile Banking application from our
website (Download Mobile Apps section of this page) as well as from the corresponding
App Stores (Android, Apple).

f) ATM Card: RBB is visa associate member bank. Bank has launched issuance of Visa
Electron Debit card from all of its branches. RBB has own 72 ATM outlets.
RBB is issuing Visa Debit card in three categories:
i.Visa Domestic: Valid in Nepal and India
ii.Visa International: Valid Worldwide
iii.Visa Travel Quota: Valid worldwide issued against Travellers Cheque

3.7.5 Other Services

a) Any Branch Banking Service: RBB has been providing Any Branch Banking
Service from all branches across the country. Through this service a customer from our
any branch can easily deposit his/her money in any branch and withdraw his/her money
from any branch.

ABBS service charge is free within the Kathmandu valley and within the same district.
However, for the cross district (except for within the Kathmandu valley) transaction,
minimum charges of Rs 100 will be charged up to Rs 2 lakhs and 0.05% will be charged
above Rs 2 lakhs.

b) Trade Finance: Through the wide spread and strong network of correspondent
banking relationships, Rastriya Banijya Bank is capable to offer various products
related to international trade suitable to your needs. Some of the major products and
services in this regard are as follows:

i.Letters of Credit (local, import and export)

ii.Various types of Bonds/Guarantees (including counter guarantees)

27
iii.Collections (Clean and documentary)
iv.Short-term Trade Finance (import, export and bills)

c) Student Financial Assistance Project: Student Financial Assistance Fund

Development Board (SFAFDB) and Rastriya Banijya Bank (RBB) signed agreement for
carrying out banking and consulting services for the administration of student financial
assistance trust fund on the 21st November, 2008. RBB, hence called as Administrator,
signed agreement with sub-consultants DEVTEC Nepal (P) Ltd and Research Inputs and
Development Action (RIDA) for acquiring technical support in this regard.

The main objective of the task is to administer the student financial assistance program
starting from awareness raising, selection of students and disbursement of financial
assistance through the different branches of Rastriya Banijya Bank.

c) Locker Facility: Locker is a facility furnished to the individual and institutional

customers who prefer to safe deposit precious gems & jewelries and important documents
to evade the probability of increasing theft, burglary and fire. The Locker has been the
first choice for the safest custody of the valuable goods with flexibility of time to store
and take away when required.
The customers are charged certain fees in return of such facilities. The locker department
of the bank is always guarded by at least one employee and the entries inside the locker
is strictly monitored. However, the customers are allowed to visit their respective lockers
any number of times in a day; they just have to maintain the entry ledger stating the time
of arrival and time of departure.

28
 CHAPTER IV

ANALYSIS OF ACTIVITIES DONE AND PROBLEM

SOLVED
The interns were placed in cash, bills and locker department of the bank during the period
of internship of eight weeks. The various activities done by the intern during the period of
internship are described in this chapter.

4.1 Customer Service Department

During the eight weeks of internship in RBB Ltd, the interns were placed in Customer
Service Department for four weeks which helped the interns to gain knowledge of that
department.

“Excellent customer service is the process by which your organization delivers its services
or products in a way that allows the customer to access them in the most efficient, fair, cost
effective, and humanly satisfying and pleasurable manner possible”. Here is the first point
to remember: Customer service is a process, not a set of actions that might include greeting
the customer, smiling, asking if you can help, etc.

Customer service is about how your organization delivers its products and services. The
part that sales people play in the customer service process is taking the customer through
the process in order for him or her to receive the product they walked in to acquire.

Furthermore, Customer service (also known as Client Service) is the provision of service
to customers before, during and after a purchase. Customer service may be provided by a
person (e.g., sales and service representative), or by automated means called self-service.
Customer service is normally an integral part of a company’s customer value proposition.

The customer service process must be transparent. If an organization can practice full
disclosure in an obvious way in their product information and their contracts, they are on
the way to creating customer loyalty. If the customer experiences your organization as one
where they were never surprised and never felt deceived, the organization will create a

29
competitive edge in a world where there is precious little confidence in the customer service
process.

It is very important to know that a highly satisfied customer stays loyal longer, buys more
as the organization introduces new product, pays less attention to competing brands and is
less sensitive to price. Having a significant number of this kind of customers is only
possible through the efficient functioning of customer service department of any
organization. It would then not be inappropriate to say that this department is the key to
success of any organization.

4.2 Major Functions Carried under CSD

This department is involved in various activities from opening an account to its closing,
providing account statement as per customer demand, issuing ATMs etc. The basic
functions of this department are:

 Customer counseling
 Account operations
 Distribution activity

4.2.1 Customer Counseling

Customer counseling is most important functions of customer service department. The

efficiency of the customer service department or an organization is the outcome of the
quality of the customer counseling that it provides. As shown in the above chart that this
department is concerned with counseling the new as well as the existing clients regarding
the products and the services provided in this branch. There are various kinds of products
and services available in this organization. This department is also responsible for
providing detail information regarding these different products and services.

Staffs in CSD should have information about the various products of the bank and should
have good communicating skills as to answer the queries of the customers correctly,
precisely and politely.

30
4.2.2 Account operation

Accounts can be opened in two ways:

1. Individual Account: Any individual capable to enter into a contract can open
accounts with the bank. Lunatics, insolvents, drunkards cannot enter into the contracts.
Naturally, they cannot be the account holders. Illiterate person, blind, trustee can open
accounts but special attention should be paid to such accounts. Likewise, banks also open
accounts in the name of minors but they have to be operated by guardians till “minors turn
into “majors”.

There are various types of individual accounts such as:

a) Personal NPR Account, Personal USD Account and can open account in all
convertible currencies directed by NRB (For Nepalese and Foreign Citizen)
 Joint NPR Account (For Nepalese Citizen)

The basic requirements for opening Personal Account:

 Fill in the application form
 Agree with the terms and conditions of the bank
 Sign the specimen cards
 Certified True Copy of Identification Document i.e. Citizenship or Passport
 One photograph of account Holder
 Introduction by existing account holders

In case of Foreign National:

 Certified true copy of Passport
 Documents should be certified from concerned Embassy
 Certified True copy of valid Visa
 All documents of personal account for all the joint parties
In case of Joint account:
 The party who has not filled the regular account opening form must fill up the
addendum
 No objection for any one-signature form must be filled

31
After ascertaining completion of above said documents, the bank assigns an account
number, accepts deposit in the deposit slip (voucher) and issues a checkbook and card to
individual(s).

In case of the illiterate, thumb impression is obtained in the specimen card. Moreover, s/he
is required to furnish photograph as well. No checkbook is issued and the account holder
is required to visit bank in person for withdrawal. Terms and conditions should be
explained.

2. Corporate Account
There are four types of corporate account and the documents required for each account are
as follows:

a) Proprietorship Account: A business firm registered in the name of a

person/proprietor is known as sole proprietorship firm. The proprietor enjoys all the profit
and bears all the loss from the operation of the business.
 Registration Certificate
 PAN Certificate
 Citizenship Certificate/Passport
b) Partnership Account: A business firm registered in the name of more than one
individual is known as a partnership firm. The proportion of the share of benefit and loss
among the partners is mentioned in the partnership deed.
 Registration Certificate
 Citizenship Certificate/Passport (of partners)
 PAN Certificate
 Registered Partnership Deed

c) Corporate Account: Companies can be both private limited and public limited.
They are called limited because their members are limited to the number of shares they
hold in the company.
 Registration Certificate
 Citizenship Certificate/Passport of Authorized Signatories

32
 PAN Certificate
 Memorandum and Articles of Association
 Board Resolution
d) Account of Institutions/Association/Societies: Various clubs, social institutions,
NGOs, INGOs, projects, different bodies of governments also open accounts with the
banks.
 Registration Certificate
 Citizenship Certificate/Passport (of partners)
 PAN Certificate (if applicable)
 Constitution and By-Laws
 Citizenship/Passport of Authorized Signatories

Points to follow while opening Corporate account:

 Legal status of the account holder should be examined to open accounts.
 Original documents should be checked and a certified copy should be
retained.
 Any blank space in the “instruction” and “specimen card” column should
be crossed.
 An account number is to be assigned.
 Deposit to be accepted in the deposit slip (voucher) and a copy to be
returned to the account holder.
For fixed deposit account, just an application form is to be filled out as the account holder
must normally have any account maintained with bank. Bank issues a Fixed Deposit
Receipt as a proof of having accepted fixed deposit.

4.2.3 Distribution Activities

1. Statement Print
One of the major works done in CSD is to print the statement for customers. Customers
are required to fill the enquiry form which contains the Name, Account number and
authorized signature of the customer in order to get the bank balance statement. Bank
balance statement shows the amount deposited and withdrawn by the customers. Bank

33
normally provides the statement paper free of cost. Customers who have already acquired
their respective account statements have to pay certain fine to reacquire it; otherwise RBB
account statement is free of charge. Also, bank statement is available at the respective
branch where the accountholder has opened an account in. Only the accountholder is
capable of checking his account details through his statement.

2. Check Available Balance

Customers come to inquire the available balance that can be withdrawn from their account. Only
the account holder is authorized of such cash availability in the account. Such account information
are considered highly confidential and not even the nominee is granted the authorization.

3. Issuance of Cheque Book

Cheque is issued to the customer after he/she opens the account in bank as per his/her
request. The number of cheques issues to savings account holder is 10 and to the holder of
current account depends upon the customers’ requirement. If customer requested for new
cheque book for second time s/he should fill the requisition form which is placed at the end
of the cheque book. Before receiving the cheque book, account holder should sign in
cheque register and requisition slip. Then account holder’s signature is verified by
PUMORI system and when signature matches s/he gets new cheque book. In case if
requisition slip is lost, account holder should pay the extra charge of Rs. 200 to get new
cheque book and charge is debited from customer account or paid cash by the customer.
Cheque books of branches outside the valley is made available to the customers if in need.
However, customers having an account in the branches inside the valley have to visit the
respective branch for the cheque book. The charges are assigned accordingly as per the
new rules implemented for the current fiscal year.

Like the balance statement and account details, cheque book is also assigned only to the
respective accountholder.

4. Distribution of ATM Cards

34
The ATM cards are issued once and are renewed when it gets expired or lost/stolen. Once
an ATM card is issued/renewed, it should be renewed only after the completion of five
years. Before the dispatch of the card, he signature of the account holder is verified by
PUMORI system and the identity of the account holder is verified with their identity card.
Once everything is verified, the ATM card is dispatched to the account holder.

4.2.4 Problems Solved in Customer Service Department

CSD and problems are non-detachable terms. One of the main functions of CSD is to solve
the problems. 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
CSD officer is to handle those customers and solve their problems by either providing the
factual information or by providing the complete information as per their peculiarity of the
case.
 Problems related to the non-clarity of information:
Sometimes, the customers misunderstood the information and the CSD officer is
responsible to clarify the information to the customer and make it clear to them.
 Problems 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 don’t easily accept
the change. Hence, the CSD officer should inform the customer about the change, its need
and relevance to the organization which is a really hard and tedious job to perform.
 Problems related to the mistakes due to the error in the system:
Sometimes due to various reasons, the customer’s account would be debited twice for the
same charge or something similar to this occurs. Also, sometimes the ATM Machine
doesn’t provide the cash but the account is debited. This and other such kinds of system
errors make the customer dissatisfied and hence the dissatisfied customer arrives to the
CSD and this kinds of problems are to be handled by the CSD officer.
 Problems related to the misunderstanding of the customers:

35
This kind of problems arises when the customers aren’t fully aware about the services and
products and their features. The limitations of the services and the products, sometimes
make the customer unhappy and the customer starts perceiving the bank as a fraud. So, the
CSD officer should solve such kinds of situation and prevent customers from losing faith
in the banking operations.

4.3 Electronic Cheque Clearing

All cheques, as a rule go through clearing house for clearing, only cheques that do not go
through it is if they are deposited or cashed at same bank. The money is not released until
the cheque is verified by the bank in all respect. Then first exchanged by banks after
withdrawing from cheque issuer's account, the receiving bank pays the depositor in its
account. This process is call cheque clearing process. In simple terms if more than one
bank is involved for cheque clearance then it has to go through clearing house.

Electronic Cheque Clearing is an image-based, cost-effective, MICR cheque processing

and settlement solution where an original paper cheque is converted into an image for
electronic processing of the financial transactions between participating member
banks/FIs. This process (called 'clearing cycle') normally results in a credit to the account
at the bank of deposit, and an equivalent debit to the account at the bank on which it was
drawn. The physical movement of cheques is stopped at the level of the presenting bank in
the NCHL-ECC system. The cheque does not physically travel to the clearing house to the
paying branch as it used to in manual clearing process, resulting in faster and easier
processing of the cheque transactions.

NCHL-ECC system provides two types of clearing service:

a) Express Clearing Service: NCHL offers express clearing service up to 12:00 pm

for high value cheques and RBBL charges certain fee for this service.
b) Regular Clearing Service: It also offers regular clearing service at 3:00pm, during
which free of cost clearing service is provided for cheques worth less than Rs 200,000.

However, for cheques amounting more than Rs. 200,000, clearance charge is acquired from
the endorsee. Also, additional charge is acquired from the accountholder if the cheque has

36
to be cleared to the branches outside the valley. Such charges depend upon the amount of
the cheque that has to be cleared. The extra charge is derived from the percentage of the
cheque amount exceeding Rs. 200,000 and is based upon the type of account.

4.3.1 Activities Carried Out

Activities performed under electronic cheque clearing are:

 Help customer fill up the voucher.

 Verify the details of both the cheque and the voucher.
 If the cheque is issued in the name of the individual person then, the signature of
that person must be at the back of the cheque and ask the amount to be deposited in the
cheque.
 If the cheque is issued in the name of the firm, then there must be the stamp of the
firm at the back of the cheque.
 One voucher is kept by the bank and the other is returned after being signed by the
authority.
 The cheques are scanned and sent to the central bank.
 The cheques are sent in two ways: express and regular. Express cheques are sent
before 12 o’clock for faster clearing and it costs Rs 100. Regular cheques are cleared within
the clearing time given by the central bank.
 At the end of the day, after the cheques are processed by taking printing out the
summary after the details being entered in the computer.
 If the cheque gets returned then the customers are informed along with the reasons
and are told to contact with the bank.

4.3.2 Problems Solved in Electronic Cheque Clearing

The problems solved in ECC are as follows:

 Sometimes cheques get stuck in the cheque scanner, so the scanner needs to be
opened to take the cheque out and re-scan it.
 If cheques got returned, the customers were informed about it along with the
reasons are were told to contact with the bank.

37
 CHAPTER V

CONCLUSION AND LESSION LEARNT

5.1 Conclusion
Banking industries now have been the most essential component that circulates the
necessary products and services as per the needs of the society. Besides, banks create the
environment for income generation in order to raise the standard of living of the poor
populace and enhance the industries for production for the big producers. The development
of the banks has improved the banking as well as the economic condition of the country. It
has helped to improve the economic condition of the people and provided the security to
the funds available to the people.

Rastriya Banijya Bank is one of the well-known names in banking sector with its 161
branches all over Nepal. RBB has come up with new and more viable strategies to capture
Nepalese commercial environment. This bank has a promising future if it is able to move
along the market demand.

Bank operates its business within the society and cannot be isolated. It has certain duties
towards society and the other institutions. Therefore, RBBL is providing space to the
students from different areas, and has been doing tremendous job as the part of institutional
relationship.

As for me it was a great exposure to work as an intern at RBB. It brought me the practical
knowledge that I lacked and gained me some experience that I needed. I now have both
theoretical and practical knowledge on banking activities. This internship really helped me
to develop the managerial and interpersonal skills and at the same time boost up the
confidence level. During this period, I learned to perform jobs in a team and to socialize
with people.

38
5.2 Lesson Learnt
The internship period of 8 weeks has become a great experience and fruitful where I gained
knowledge on the banking environment in the commercial bank. I have learned that
socializing with people, dealing with customer and coworkers or a senior, making the
working environment cozier and friendlier are equally important in the organization.
Informal interaction and communication among the employees help to ease the monotony
of the job and create a pleasant working environment. During the internship period I
realized that good interpersonal skills are important in the field of marketing. Moreover,
willingness to learn and taking initiative is essential to gain comprehensive knowledge
about the work. The eight weeks long internship at RBBL gave me an opportunity to learn
most of the activities of the CSD department. Moreover, I learned the following things:

5.2.1 Human Resource Relationship

There is cooperation and coordination between the employees within each department and
even in between the departments. There is friendly and encouraging working environment
among the staffs and the supervisors. There is two-way communication, the staffs are free
to give the suggestions and advices. There is no hierarchy within the department, each
department works as a team.

5.2.2 Develop Communication Skills

Regular interaction with the customers has helped me a lot in developing sound
communicating skill. I learnt to be calm under the adverse conditions and tactfully handle
the complex situation and to handle the grievances of the customers without giving them
chance to add more to the situation.

5.2.3 Knowledge about the Organizational Environment and Work Culture

Employees of the bank are very helpful and cooperative as they are always there to help
their customer. The environment is very friendly and I felt so comfortable working there.
They never let me feel that I was just an intern. I was able to make a good relation and
great bonding with them. The encouraging work environment proved really fruitful for all
the interns, including me to learn as much as possible.

39
5.2.4 Buildup Confidence
Internship program helped me build up my confidence as well. That nervous start turned
out to be a happy and confident ending where dealing with harsh customer complaints
became easy to handle and the adverse situations stopped scaring me.

5.2.5 Importance of Time and Punctuality

I learnt the importance of time because all the customer requests needed to be done in time
or the requests got piled up. The importance of going to the workplace on time did not just
add up on my punctuality but reduced the customer grievances as well as their complaints
and were timely dealt with.

40
 References
Electronic Cheque Clearing (NCHL-ECC). (n.d.). Retrieved September 5, 2013,
from Nepal Clearing House: http://nchl.com.np/informations/view/Electronic-
Cheque-Clearing-NCHL-ECC.html

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42
 Annexes
Annex 1 Name of the commercial banks and their operation date:

Operation
S.N Date
Name of the Commercial Banks
.
(A.D.)

Nepal Bank Ltd. 11/15/1937

1
Rastriya Banijya Bank Ltd. 1/23/1966
2
Agriculture Development Bank Ltd. 1/2/1968
3
Nabil Bank Ltd. 7/16/1984
4
Nepal Investment Bank Ltd. 2/27/1986
5
Standard Chartered Bank Nepal Ltd.. 1/30/1987
6
Himalayan Bank Ltd. 1/18/1993
7
Nepal SBI Bank Ltd. 7/7/1993
8
Nepal Bangladesh Bank Ltd. 6/5/1994
9
Everest Bank Ltd. 10/18/1994
10
Kumari Bank Ltd. 4/3/2001
11
Laxmi Bank Ltd. 4/3/2002
12
Citizens Bank International Ltd. 6/21/2007
13
Prime Commercial Bank Ltd 9/24/2007
14
Sunrise Bank Ltd. 10/12/2007
15
Janata Bank Nepal Ltd. 4/5/2010
16
Mega Bank Nepal Ltd. 7/23/2010
17
18 Century Commercial Bank Ltd. 3/10/2011
19 Sanima Bank Ltd. 15/02/2012

Machhapuchhre Bank Ltd. 09/7/2012*

20

1
 30/06/2013
NIC Asia Bank Ltd.
*
21
09/04/2014
Global IME Bank Ltd.
*
22
18/10/2015
NMB Bank Ltd.
*
23
12/02/2016
Prabhu Bank Ltd.
*
24
21/07/2016
Siddhartha Bank Ltd.
*
25
14/07/2016
Bank of Kathmandu Lumbini Ltd.
*
26
17/10/2016
Civil Bank Litd.
27 *
01/01/2017
Nepal Credit and Commerce Bank Ltd.
*
28
*Joint operation date after being merged