AN

INTERNSHIP REPORT
AT
RASTRIYA BANIJYA BANK LIMITED
DAMAK BRANCH, JHAPA

By
Saugat Koirala
Nisha Devkota
TU Exam Roll No.27088/20
TU Reg. No.:

An internship report submitted to

Faculty of Management, Tribhuvan University
In partial fulfillment of requirements for the degree of
Bachelor of Business Administration

At
Damak Multiple Campus

Tribhuvan University

April 2025
 INFORMATION SHEET

Name of the company: Rastriya Banijya Bank Limited

Address of the company: Damak, Jhapa

Phone Number of the Company:

Date of Internship Commencement:2081/08/25

Date of Internship Completion:2081/11/02

Student’s Name: Saugat Koirala

 STUDENT’S DECLARATION

I hereby declare that my internship report submitted to the Faculty of Management,

Tribhuvan University, is an original work under the supervision of Sudip Thapa lecturer
at Damak multiple campus, in partial fulfillment of the requirements for the award of the
degree of Bachelor of Business Administration (BBA). This internship report has not
been submitted to any other university or institution for the award of any degree or

diploma.

..................
Saugat Koirala
 LETTER OF RECOMMENDATION

This is to certify that the ‘Internship Report of Rastriya Banijya Bank Limited,
Damak Branch’ submitted by [Link] Koirala for the partial fulfillment of
the requirements for the degree embodies the Bonafede work done by her
under my supervision. I hereby recommend this Internship Report for final
examination by the research committee of Damak Multiple Campus,
Tribhuwan University, in fulfillment of the requirements for the degree of
Bachelor of Business Administration.

…………………..

Sudip Thapa

Internship supervisor
 APPROVAL SHEET

This is to certify that the Internship Report on “Internship Report of

Rastriya Banijya Bank Limited, Damak Branch” prepared and submitted by
Ms. Nisha Devkota for the partial fulfillment of the requirements for the
degree of
Bachelor of Business Administration is found her original work. The report
is, therefore, approved and recommended for its acceptance.

…………………….

Name of Supervisor: Mr. Sudip Thapa

Faculty Member, Damak Multiple Campus

…………………….

Name of Coordinator: Mr. Sudip Thapa

Co-ordinator BBA
Damak Multiple Campus
INTERNSHIP CERTIFICATE
 ACKNOWLEDGMENT

This Internship Report is prepared for the partial fulfillment of the requirement for the
degree of Bachelor of Business Administration offered by Tribhuvan University, based
on activities performed and experience gained during the internship period. It would not
have been possible without the generous support and assistance of many people.
Therefore, I would like to acknowledge my gratitude to each one of them. I would also
like to express my sincere gratitude to the college administration for providing us with
the infrastructure and other resources needed for the accomplishment of this report.
Similarly, I wish to express my deep sincere thanks to Sudip Thapa for giving me the
responsibility to prepare this report along with his guidance, valuable advice, support,
and inspiration. Heartfelt thank you so much for your favor and support.

I would like to convey my gratitude to,Tika Raj Rijal branch manager of Rastriya
Banijya Bank Limited Damak Branch, and all the staff of the branch for the guidance
favor, and support during the work period. My Special thanks to my supervisors Suman
Dhakal in Bank for proper guidance, direction, encouragement, and suggestions despite
their busy workload and busy schedule. My gratitude also extends to my seniors, friends,
interns whom I worked with, and well-wishers for their support, insightful feedback,
understanding, and encouragement when needed in the completion of this report. I would
like to take accountability for any mistakes that may have occurred in the report.

Saugat Koirala
 TABLE OF CONTENT

INFORMATION SHEET............................................................................................................... ii

STUDENT’S DECLARATION..................................................................................................... iii

LETTER OF RECOMMENDATION............................................................................................ iv

APPROVAL SHEET...................................................................................................................... v

INTERNSHIP CERTIFICATE...................................................................................................... vi

ACKNOWLEDGMENT................................................................................................................ vii

LIST OF TABLES........................................................................................................................ xii

LIST OF FIGURES...................................................................................................................... xiii

LIST OF ABBREVIATIONS....................................................................................................... xiv

CHAPTER 1................................................................................................................................... 1

INTRODUCTION........................................................................................................................... 1

1.1 Background............................................................................................................................ 1

1.2 Objectives.................................................................................................................................. 3

1.3 Methodology.............................................................................................................................. 3

1.4 Organizational Selection....................................................................................................... 4

1.4.1 Placement........................................................................................................................ 4

1.4.2 Duration of Internship.................................................................................................... 4

1.5 Limitations of the Study........................................................................................................ 5

CHAPTER 2................................................................................................................................... 6

INTRODUCTION TO BANKING INDUSTRY...........................................................................6

2.1 Background............................................................................................................................ 6

2.2 Evolution of the Banking Industry in Nepal........................................................................7

2.3 Types of Banks in Nepal....................................................................................................... 8

2.3.1 Commercial Bank........................................................................................................... 9

2.3.2 Development Bank......................................................................................................... 9

 2.3.3 Financial Companies..................................................................................................... 10

2.3.4 Micro-Finance Companies........................................................................................... 10

CHAPTER-3.................................................................................................................................. 11

INTRODUCTION TO RASTRIYA BANIJYA BANK..............................................................11

3.1 Background.......................................................................................................................... 11

3.2 Vision and Mission.............................................................................................................. 12

3.3 Objectives of RBB............................................................................................................... 12

3.4 Organizational Structure...................................................................................................... 13

3.5 Ownership Structure............................................................................................................ 14

3.6 Product and Services........................................................................................................... 15

3.6.1 Deposits......................................................................................................................... 15

[Link] Saving Account.......................................................................................................... 15

[Link] Fixed Deposit Account.............................................................................................. 16

[Link] Current Account......................................................................................................... 16

3.6.2 Credit products.............................................................................................................. 17

[Link] Business Loan............................................................................................................ 17

[Link] Retail Loan................................................................................................................. 18

[Link] Agriculture Lending.................................................................................................. 18

3.6.3 Remittance Services...................................................................................................... 19

3.6.4 Safe Deposit Locker Service........................................................................................ 19

3.6.5 ASBA, C-ASBA, and Mero Share Services................................................................19

3.6.6 Student Financial Assistance Project (SFAFDB)........................................................20

3.6.7 Trade Finance............................................................................................................... 20

3.6.8 Mobile Banking Services............................................................................................. 21

3.6.9 Internet Banking Services............................................................................................ 21

3.6.10 RBB Card Services..................................................................................................... 21

3.6.11 Any Branch Banking Service (ABBS)......................................................................22

 3.6.12 POS Service................................................................................................................ 22

3.6.13 SWIFT......................................................................................................................... 23

CHAPTER 4.................................................................................................................................. 24

ANALYSIS OF ACTIVITIES PERFORMED.............................................................................24

4.1 Background.......................................................................................................................... 24

4.2 Activities Performed in CSD............................................................................................... 24

4.2.1 Account Opening.......................................................................................................... 25

4.2.2 KYC Update................................................................................................................... 27

4.2.3 Account Closing........................................................................................................... 27

4.2.4 Cheque printing............................................................................................................ 27

4.2.5 Balance Inquiries.......................................................................................................... 28

4.2.6 Filing and Documentation............................................................................................. 28

4.2.7 Providing Account Statements..................................................................................... 29

4.2.8 Providing Different Kinds of Forms............................................................................29

4.2.9 Photocopy, Scanning, and Mailing Documents...........................................................30

4.3 Activities Performed in the Electronic Cheque Clearing Department (ECC)...................30

4.3.1 Cheque Entry in The System........................................................................................ 31

4.3.2 Record keeping and informing..................................................................................... 31

4.3.3 Bounce Report.............................................................................................................. 31

4.4 Activities performed in the Administration Department....................................................32

4.4.1 Assisting customers to fill in the pension renewal form.............................................32

4.4.2 Renewal of the pattas................................................................................................... 32

4.5 Problem Identification and Solved...................................................................................... 33

4.5.1 Problem-related to incomplete information on the side of the customer...................33

4.5.2 Problem-Related to the misunderstanding of the customer........................................33

4.5.3 Problem-related to the system operation......................................................................33

4.5.4 Problem related to ATM cards..................................................................................... 34

 4.5.5 Problem related to communication...............................................................................34

4.5.6 Problem-related to workload........................................................................................ 34

4.5.7 Problem-related to mistakes made by employees.......................................................35

CHAPTER 5.................................................................................................................................. 36

CONCLUSION.............................................................................................................................. 36

5.1 Lesson Learnt....................................................................................................................... 36

5.1.1 Learnt to use bank core software.................................................................................36

5.1.2 Theorical knowledge implicated to practical knowledge............................................36

5.1.3 Identification of Different Banking Products and Services........................................37

5.1.4 Gained communication and negotiation skills in the professional field....................37

5.1.5 Learn about work culture and working conditions......................................................37

5.1.6 Developed teamwork skills.......................................................................................... 38

5.1.6 Learning from Mistakes............................................................................................... 38

5.2 Conclusion............................................................................................................................ 38

REFERENCE................................................................................................................................. 41
 LIST OF TABLES

Table 1.4.2 Placement and Duration of Internship................................................................5

Table 3.5 Share Ownership of the Organization..................................................................15
 LIST OF FIGURES

Figure 3.4 Organizational Structure of RBB.................................................................... 14

Figure 4.2 CSD Functions Carried out in RBB.....................................................................25
Figure 4.2.1 Specimen of account opening form for individual and joint...........................27
Figure 4.2.4 Cheque Requisition Slip...................................................................................28
 LIST OF ABBREVIATIONS

% : Percent

ABBS : Any Branch Banking

System AD : Anno Domini

ADBL : Agriculture Development Bank Limited

ASBA : Application Supported by Blocked

Amount ATM : Automated Teller Machine

BBM : Bachelor of Business Administration

CASBA : Centralized Application Supported by Blocked Amount

CDSC : Central Depository and Settlement Corporation Limited

CEO : Chief Executive Officer

CRN : Customer Registration

Number CSD : Customer Service

Department DP : Depository Participant

ECC : Electronic Cheque

Clearing FOM : Faculty of

Management

ID : Identity Document

KYC : Know Your

Customer LC : Letter of

Credit

RBBL : Rastriya Banijya Bank

Limited NEPSE : Nepal Stock Exchange

NIBL : Nepal Investment Bank Ltd

NIDC : Nepal Industrial Development Corporation

NPR : Nepalese Rupee

NRB : Nepal Rastra Bank

POS : Point of Sale

RBB : Rastriya Banijaya Bank

SWIFT : Society for Worldwide Interbank Financial Telecommunication

TU : Tribhuvan University

USD : United State Dollar

 CHAPTER 1
INTRODUCTION

1.1 Background

Tribhuvan University, mostly referred to as TU, is a renowned academy that has been
providing quality education to students since 1959. The university is profoundly named after
one of the greatest kings in history, King Tribhuvan, and is one of the oldest and largest
universities in Nepal and is owned by the state. In the past, TU only had its programs on
constituent campuses. However, the growing number of students and the increasing demand
for quality education from the students led TU to affiliate with private colleges and has been
ranked as top 800-1000 universities in the world as per the Times Higher Education World
University ranking in 2021 with the various faculties it has been providing. TU has provided
undergraduate courses, postgraduate courses, M. Phil, and Ph.D.

Furthermore, the national university has four faculties operated by the dean which are: the
faculty of management, the faculty of the law, the faculty of humanities and social science,
and the faculty of education. The additional five technical faculties provided by Tu are the
Institution of Agriculture and Animal Science (IAAS), the Institution of Engineering (IOE),
the Institution of Forestry (IOF), the Institute of Medicine (IOM), and the Institute of
Science and Technology (IOST). Among all these faculties offered by TU, one of the
biggest grosses for TU is the Faculty of Management (FOM). The design and syllabus of the
Faculty of Management provided by TU aims to provide better opportunities to a student in
various sectors as the course is designed in a way that a student can choose from their field
of interest can be an entrepreneur a banker or a digital creator for marketing, and so on.
Also, the course has an essence that the student pursuing the education can match the
professionalism in the global market as well. The various courses provided by TU for
undergraduates under the FOM are BBA, BBM, BBS, BIM, BTTM, BHM, and BPA. Likewise,
in postgraduate TU is running programs for further enhancement of students which are MBA,
MBM, MFC, MPA, MBS, MTTM, MHM, MBA-IT, and MBA-GLM. All the above
programs are run for 4 years and are of semester system however, BBS is run year-wise.

1
In this way, FOM aims to provide insight into the working mechanism that goes into the
real working environment and what should be done to enhance the overall productivity in an
industry or in a home, the economy, and so on. Also, this program was developed to
enhance students’ critical thinking skills, leadership skills, communication and networking,
effective management, etc. Among other programs in FOM, BBM is a newly launched
program that is offered by TU which was started in 2013 by providing affiliation to six
colleges outside the valley. However, in 2014 TU affiliated two colleges inside the valley
which are Nepal Commerce Campus (NCC), and Saraswati Multiple Campus (SMC). Like
the other programs under undergraduates provided by TU, BBM is also a 4years course and
is semester-wise. The working hours for each subject are 48 hours. Similarly, the total credit
hours are 120, where the business tool course is 36 credit hours, business foundation courses
are 60 hours, focus area courses are of 15hours, and elective courses are of 9hours.
In recent times many private and public colleges have been affiliated with TU to run the
BBM program. Therefore, the four-year BBM program at Damak Multiple Campus,
Dillibazar, Kathmandu-Nepal with affiliation to TU has been running this program since
2018. The institution has been following the standard format listed by TU. Like every
college running the BBM program Damak Multiple Campus also has been following the
standard format to take out its activity for the goodwill of the students. As for the
completion of this degree, the students have required an 8-week internship in the last
semester.
An internship provides an environment for professional learning experiences and gives
students the field of study in which they have an interest. The opportunity to have an internship
as an academic requirement in the BBM course has created a platform for the students to
implement theoretical knowledge in an organization. The whole course is designed in a way
that the student would have a choice while specializing in their field of study i.e., the option
of choosing among Entrepreneur, Marketing, Banking, and Insurance. The course has
provided the students with a wide variety of industries and organizations to choose from
according to their specialized course of study.
For the accomplishment of the partial fulfillment of this degree, the internship report that is
to be carried out is done on Rastriya Banijya Bank (RBB), which covers the overall
description of work done and the observation made while doing the internship in various
departments of the bank. This report signifies the internship done in Rastriya Banijya Bank
2
at Damak for 8

3
 weeks, which started from 25/08/2081 to 02/11/2081. As an intern, it was a privilege to
work in various departments such as Customer Service Desk (CSD), Bills and Loan and
Administration.

1.2 Objectives
The sole purpose of the internship is to provide practical exposure to the student and to
establish the basic discipline and professionalism that is required in a workplace. Furthermore,
the internship provides a clear path for the student to map out their career interests while
being in an active working environment. Supposedly, the course design of BBM includes the 8-
week internship compulsory for the students, where students are allowed to choose among
various industries.
Additionally, the objective of having an internship at a bank was mostly to have a better
understanding of the banking business and its accessibility in Nepal, and overall, its role in
the development of social as well as economic activities. Besides that, about the innovative
products the bank provides to its customers. However, this report covers some specific
targets of having an internship at RBB. Some of them are as follows:
a) Foremost, to be able to know about the banking process, rules, and procedures that are
followed by them under the central bank (NRB).
b) To imply theoretical knowledge in practical life.
c) To know about the risks associated with the banking business.
d) To identify the different banking products regarding the department.
e) To improve communication and negotiation skills.
f) To be familiar with the work culture and working conditions.

1.3 Methodology

For carrying out any field of study there is a requirement for a technique, process,
procedures, and so on for its constructive outcome. As a result, the methodology is the
branch of any study which is also the case for the internship done in RBB. The
methodologies applied while doing an internship are qualitative and quantitative methods.
The qualitative method includes observation and necessary personal questions regarding the
problems with the respective department staff. Also, an active involvement with the
organizational software and systems

4
and an active trial and error method application. The quantitative methods applied in this
report are journals, official websites of RBB, annual reports, and so on.

1.4 Organizational Selection

Organizational structure directs how the necessary activities are to be conducted in an

organization to better achieve its goal. The organizational structure differs from the
organizational goal; however, the general gist remains the same, which outlines the rules
and regulations on how to operate the working environment. Furthermore, it defines the
hierarchy within the organization and how the information flows between levels of the
hierarchy.

To approach the branch, the necessary procedures and documents that were required were
submitted to the head office in the Human Resources Department (HRD) such as a
recommendation letter from the college, Curriculum Vitae (CV), and a letter of interest.
After
the submission, the documents were analyzed by the respective Human Resource
Department at the head office. Then an appointment letter was duly provided to me, and
subsequently, I was selected as an intern at the Damak branch. Accordingly, I started my
internship from 25/08/2081 to 02/11/2081.

1.4.1 Placement
Throughout the internship period, I was allowed to explore the branch enough as my fellow
interns were. Interns were assigned to various departments such as the Customer Service
Department (CSD), and administration where mostly interns were placed in the pension
department and Bills and Loan. All the activities conducted by the interns were closely
supervised by each department head. Under the bank’s requirements and the way of placing
interns in the necessary departments, I was also given a chance to work in those departments
with the necessary period to comprehend the working mechanism of that department.

1.4.2 Duration of Internship

The FOM, TU has set the length of the internship at eight weeks or six credit hours of paid
work time at the organization. Therefore, an eight-week internship from 10 a.m. to 5 p.m. on
each day was completed to satisfy this criterion every working day excluding Friday.
Therefore, the internship ran from 10 a.m. to 2 p.m. on Friday.

5
 Furthermore, throughout the course of the internship, I had the opportunity to work in
various departments and actively participate in various activities. The assessment criteria for
the bank to evaluate interns covered things like behavior, punctuality, passion for
completing work, sincerity, behavior, and the effort made to understand every aspect of
banking operations. Also, a comprehensive overview of the department assignments and the
related lengths during my internship period is shown below.

Table 1.4.2 Placement and Duration of Internship

Name of the Total working

department Days
CSD 31 days
Loan 11days
Pension 6days

Moreover, in my internship duration, I worked in CSD firstly, after that, I was shifted to
Loan. Lastly, I was provided with the opportunity to work in the pension department.

1.5 Limitations of the Study

A study's limitations include any restrictions, shortfalls, or flaws that could have an impact
on the depth, reliability, or applicability of the findings. As with any area of study consisting
of limitations, the internship learning period also has certain limitations. Some of them are:
 To avoid exposing interns to the more challenging and strategic components of the job, regular
or low-level activities may be allocated to them.
 Limited time frame of 8 weeks to learn about the banking operations.
 Very few details and information about the bank due to its confidentiality and privacy.
 There were few opportunities for interns to interact with senior staff members or develop a
career network.

6
 CHAPTER 2
INTRODUCTION TO BANKING INDUSTRY

2.1 Background

A bank is a licensed financial institution that is known for accepting deposits and converting them
into various kinds of loans. Despite just accepting and converting the money into bank also
provides various facilities to its consumers such as certificates of deposits (CDs), locker,
bonds, securities, foreign exchange, and so on. Furthermore, banks are money multipliers as
they make money out of money. Every institution is responsible for creating order in society
while operating its activities for social and economic sustainability. To govern the order of
such an institution, a legal body called the government creates law and order. Therefore,
banking industries are also regulated by the government. In all countries, banks are
regulated by central banks which provide the required monetary and foreign exchange
policies and necessary day-to-day operation regularities, and so on, which maintains the
stability in market prices to currency notes to banks stability (i.e., prevents banks from going
into liquidation.)

Moreover, banking is not a modern concept, it has been in existence since the 1st century. In other
words, banks had come into the knowledge when the barter system started as the
exchanging of goods for goods however, it started to become problematic as people started to
travel from one place to another in search of new markets. As a result, it started the existence
of various kinds of coins, however, it didn’t create a place for safekeeping for those wealthy
people in Rome. Then they started to safely keep their money in temples in the hands of priests
and temple workers as they were supposed to be loyal people. Additionally, history suggests
that Greece, Rome, Egypt, and Babylon, these big cities were loaned money too by temples.
Therefore, historical records indicate that temples were functioning as financial institutions.
Subsequently, wealthy merchants also lent money to the people in need and charged certain
interest also, they used to keep surplus money of the general people and refund those in case
of need. In Europe, they were called Medici, Bengkuci, Piti, Missouri and in the Indian
subcontinent Seth, Multani, and so on. However, the modern banking system started in Venice,
Italy in 1157 which was called the Bank of Venice. This was pursued with the opening of the
Bank of Barcelona in 1401AD, the Bank of Amsterdam in 1609AD, the Bank of Hamburg in
7
1609AD, Bank of England in 1694AD which played an important role in the overall
advancement of the banking system over the globe.
In recent times, banks are not only represented as collecting deposits and lending them to
people in need in the form of loans. Now, banks have been developed as the essential
service provider to their customers. Additionally, the modern bank has been providing
innovative products such as Internet banking, mobile banking, ATMs, Debit cards, Credit
cards, and so on to create a convenient way for its customers to interact with the banking
facilities without bearing any additional financial and psychological costs.

2.2 Evolution of the Banking Industry in Nepal

Historically, Nepal reaches far back to the 30 th century BC, however, Nepal was a closed
economy until the 1950s with limited foreign trade and no international banking. Despite
this, the banking development in Nepal dates back to the year 1930BS. Furthermore, the
banking functionality can be seen in Nepal from the Malla regime, during that time there
used to be a community called Tankdhari that used to lend a certain amount of loan to needy
people. The kings that ruled at that time also contributed to the evolution of modern
banking. King Prithvi Narayan Shah established Koishi Tosha Khana which was responsible
for managing the financial transactions of the regime. Throughout the reign of the Kings,
there was a certain degree of incorporation of institutional actors such as Chandra Shamsher
who established ‘Satahikhana’ under ‘Mulukikhana’ for the facilitation of currency
exchange between the Nepalese rupee and Indian rupee.

Furthermore, Ranodip Singh established Tejarath Adda whose sole aim was to provide
credit facilities to people at a concessional rate of interest. However, this institution was not
allowed to take public deposits and provide credit to the public. The fund was provided by
the government for credit to their staff and landlords only. The Tejarath Adda, however, was
not fully considered to function as a banking institution because it was not accepting
deposits or providing loans to the public (i.e., only serving the rich.). Therefore, it was not a
bank in essence. However, the modern banking evolution started from 1994BS with the
establishment of the first commercial bank named Nepal Bank Limited, which took over the
responsibilities and functions of Tejarath Adda. Nepal Bank Limited was established as a
semi-government bank with metallic coins worth NRS 10 million. Despite that banknotes
were introduced in
8
2003 BS by the treasury ‘Sadar Muluki Khana’ where the notes were signed by
‘Khanjanchi’ the head treasurer. The first Nepalese currency notes were of 1,5,10 and 100
denominations.

In addition to filling the deficiencies and inadequacies of all the above institutions in 2012
Nepal Rastra Bank Act was formulated for a better banking system and the economic and
financial development of Nepal. In 2013 NRB was established as the central bank of Nepal.
Since 2024 BS, the government has owned 100% of the banking industry in Nepal, with Nepal
Bank Limited (NBL), Nepal Rastra Bank (NRB), Rastriya Banijya Bank (RBB), and
Agriculture Development Bank (ADBL) serving as its cornerstones. However, the first
development bank was established as the Nepal Industrial Development Bank. To operate and
govern all commercial banks, the Commercial Banking Act 1975 was passed.

After liberalization in 2040BS Nepal adopted a free economy, which led to the
establishment of private banking such as Arab Bank Limited,2041BS, which is now known
as Nabil Bank, these commercial banks have significantly influenced the development of
banking habits among the populace, expanding the business community, and the
government in numerous ways. Recently, Nepal Rastra Bank decided to merge with other
financial institutions. As a result, financial institutions have merged to form one from two,
sometimes even one from three, and several more are in the process of doing the same. Even
though they account for more than 60% of the Nepalese economy, banks and financial
institutions haven't developed to the country's satisfaction in the banking sector more than
others.

2.3 Types of Banks in Nepal

The banking system now has been classified as providing a systematic framework for
understanding, proper regulation, and supervision, and managing the diverse range of banks
and financial institutions. The basis for classification is to enable an effective risk management
strategy, for ensuring consumer protection, and ultimately contribute towards the stability
and efficiency of the financial system. In general, banks are classified into major 4 types
under the supervision of the central bank (i.e., NRB) as per the minimum capital
requirement.

9
2.3.1 Commercial Bank
A commercial bank is a type of financial institution authorized to grant loans and accept
deposits into checking and savings accounts. As in every country they are regulated by the
central bank, In Nepal the authoritative body i.e., the central bank is NRB which provides
licenses to the promoters for the commencement of the bank.

In other words, commercial banks provide the public, including private individuals and
small and medium-sized businesses, with essential banking services. Banks generate
revenue by charging for services and other costs. Overdraft costs, fees for safe deposit
boxes, late fees, etc. are all dependent on the items offered. In addition to interest on loans,
some loans can include other costs.

Banks employ money from customer deposits for their loan-granting operations to generate
revenue. When they lend money, they charge higher interest rates, while when they receive
deposits from consumers, they charge comparatively lower interest rates. Therefore, the
main function of commercial banks is to accept deposits, grant loans, act as a guarantor,
engage in foreign exchange, provide utility facilities for their consumers, and so on.

Commercial banks in Nepal came into existence with the establishment of Nepal Bank
Limited in 1937, which brought the wave and chances for other banks to perform as
commercial banks in the economy such as Rastriya Banijya Bank, along with many other
banks to date. With the ongoing crisis and the rule passed by the NRB, the merger and
acquisition of banks have resulted in a lower number of commercial banks to date.
According to NRB’s report for 2022/23, there are currently 21 in Nepal.

2.3.2 Development Bank

Development banks are financial organizations that are essential in advancing and developing
a range of economic sectors, including business, agriculture, and others. These banks serve
multiple functions, but their main goal is to promote development. They were created to
meet the enormous financial needs of the business, agricultural, tourism, and hydropower
sectors. In addition, lump-sum financing is offered by development banks, which accept real
estate, whether mobile or immovable, as security. By the Nepal Rastra Bank's (NRB)

standards, they also facilitate letters of credit. These banks also deal in foreign exchange,
provide overdraft services, and raise capital through shares, debentures, bonds, or other
1
0
financial products the

1
1
NRB specifies. There are now 17 development banks operating in Nepal, according to the
Nepal Rastra Bank's report for mid-July 2022 (Nepal Rastra Bank, 2022/23).

2.3.3 Financial Companies

Finance businesses normally do not accept public deposits, in this term, they vary from
commercial banks. As an alternative, they raise money by issuing securities and then
lending money to private citizens and small enterprises. Finance businesses may, however,
receive deposits in Nepal if they get permission from the Nepal Rastra Bank (NRB). These
businesses mainly function in industries where commercial banks can be cautious to take
risks. Their main goal is to provide financing for various initiatives as well as personal and
company loans. There are now 17 finance businesses operating in Nepal, according to the
(Nepal Rastra Bank, 2022/23) report for January 2023. Manjushree Finance Limited, Samriddhi
Finance Company, Goodwill Finance Company, and others are a few illustrative examples.

2.3.4 Micro-Finance Companies

Micro-finance company is a financial organization that offers microloans and other
financial services to those with low incomes or microbusiness owners who don't have access to
standard banking services. It provides financial services to persons who are unable to obtain
loans from banks because of insufficient collateral or poor credit history. Microfinance aims
to reduce poverty and foster economic development. Therefore, these organizations provide
financial products such as microloans, micro-savings accounts, microinsurance, and other
services based on the requirements of their target clients.

According to NRB guidelines, they can raise money by issuing debt or equity as well as
loans and grants from domestic and international banks. According to recent data (Nepal
Rastra Bank, 2022–23), there are 65 microfinance institutions in Nepal. Sana Kishan Vikas
Bank, Nepal Grameen Bikash Bank Limited, Nirdhan Utthan Bank Limited, and others are a
few of those raising people's standards of living.

10
 CHAPTER-3
INTRODUCTION TO RASTRIYA BANIJYA BANK

3.1 Background

Rastriya Banijya Bank (RBB) is a fully owned government bank and one of the pioneer
banks with the commencement of its activities on January 23rd, 1996 (10th Magh, 2022).
The bank operated under Rashtriya Banjiya Bank Act,2021, and Commercial Bank Act,2031
until it was re-registered as a public limited company on 6 th Baishak 2063. Now, the bank
performs its activities as per the provision of the Bank and Financial Institutions Act
2073(2017) and is classified as an A-class financial institution that is licensed by Nepal
Rastra Bank.

Furthermore, in the past, RBBL went through several demanding business years and
wrestled with existential issues. However, the Bank successfully carried out a restructuring
plan after learning from the unfortunate occurrences and yearning for a better future. As a
result, it is currently one of the most popular banks in the nation, with the biggest number of
clients in all 77 districts and 7 provinces. At present, RBB offers a wide range of banking
services to a diverse customer base including individuals, institutional customers,
government agencies, and business communities. As per Wikipedia, 2023, RBB has a
workforce of 3000+ employees, The bank has established a wide presence throughout the
country through its 263 branches,93 branchless banking outlets, and 204 ATMs.

In addition, the bank has developed correspondent relationships with the biggest foreign banks
all over the world, enabling SWIFT trade financing, personal cash transfers, and inter-bank
fund transfers. To develop the remittance industry, RBB also works with Western Union and
International Money Express, two major person-to-person fund transfer networks.
Additionally, through its promoter role, RBB, the second-largest commercial bank in the
nation, has significantly contributed to the growth of the financial industry, including banks
and insurance businesses.

RBBL is a pillar in Nepal's financial system because of its high public reputation, which is
demonstrated by its sizable deposit base and the rising demand for branch growth. The bank
remains entirely committed to making future contributions that will best aid the nation's and
its citizens' socioeconomic growth. Being the most trusted bank in the nation is a result of
11
the

12
 unwavering faith and goodwill shown by customers, as well as the government's, well-
wishers', and general public's continuing support.

3.2 Vision and Mission

Vision in any business represents an aspiration to what to become in the future.

Furthermore, it describes what a company desires to achieve in the long term while
outlining its strategic direction and guidelines for its efforts and resources toward achieving
the goal. However, mission refers to the unique purpose of a company and why it is apart
from its competitors in terms of products, markets, technology, and so on. Briefly, vision
and mission are major guidelines that help an organization to achieve its objectives. The
vision and mission of RBB are also a guideline for the bank to operate accordingly to it for
reducing the chances of being out of the market, as it defines why the organization exists
and does what.

 Vision
The vision of RBB is to be the most credible bank for one and all and to always contribute
towards the Nation’s prosperity.
 Mission
The missions of RBB are:
1. To enhance the quality of life of all Nepalese people by reducing the barriers related to
financial access.
2. To ensure safety, innovation, and affordable financial services with vast networks of
efficient centers, and socially responsible business processes.
3. To ensure the staff are empathetic towards the customer’s needs.

In conclusion like every financial institution, RBB’s vision and mission are directed towards
providing financial services to its targeted customer in a reasonable and deriving customer
with a wonderful experience to ultimately have a competitive edge in the market.

3.3 Objectives of RBB

Like every financial institution, RBB’s objectives are also based on the economic development
of the nation through its product and development as it supports at the individual level (i.e.,
saving habits) to big projects, construction, hydropower, agricultural sector, and so on.
However, some of the major objectives of RBB are:
13
1. To focus on providing innovative financial services.
2. To increase the capital base of the bank by meeting the minimum capital requirement.
3. To grow the business and increase its market share.
4. To enhance operational efficiency.
5. To increase a sustainable profit.
6. To focus on the empowerment of the deprived class.

3.4 Organizational Structure

Organizational structure directs how the necessary activities are to be conducted in an

organization to better achieve its goal. The organizational structure differs from the
organizational goal; however, the general gist remains the same, which outlines the rules
and regulations on how to operate the working environment. Furthermore, it defines the
hierarchy within the organization and how the information flows between levels of the
hierarchy.
The organizational structure heavily relies upon the goal of the organization. RBB’s
organizational structure is also a factor responsible for the smooth flow of its day-to-day
activities, where every level of employee is specialized in their roles. However, a brief
representation of RBB’s organizational structure can be seen below in the diagram.

14
 Figure 3.4 Organizational Structure of RBB

As seen in the above figure RBB’s structure is comprised of boards of directors who lie on
the top of the power structure. The structure consists of seven members of the board
including the chairman. Since RBB is fully owned by the government and the government
solely nominates all board members including the chairman. However, executive power is
vested in the hands of the Chief Executive Officer (CEO). The CEO is appointed by the
Board of Directors (BODs), where the CEO of RBB is Kiran Kumar Shrestha, who is
followed by the General Manager (GM), Deputy Manager (DGM), and other departments.

3.5 Ownership Structure

Ownership structure refers to who legally controls the business, it gives the owner the right
to make certain business decisions. In other words, ownership structure refers to the
composition

15
of the owner’s capital in the share capital. Therefore, the ownership structure of RBB is as
follows:

Table 3.5 Share Ownership of the Organization

Particulars % of holdings
Government 100

3.6 Product and Services

As we’re aware, every commercial bank is composed of various products and services that it
offers to its targeted customer which includes deposits, loans, remittances, digital services,
and so on. Furthermore, RBB has added various new services to draw clients in response to
the changing market and escalating competition. By providing a wide variety of services,
RBBL aims to make banking transactions for its clients simpler. The bank cares about its
clients, and by offering a variety of services, it tries to suit their needs. The following are
some of the goods and services provided by RBB which are classified into deposits, loans,
digital banking, ATMs, and other services which are further explained:

3.6.1 Deposits
RBB, as another commercial bank in the market, accepts deposits from the public.
Accepting deposits and creating deposit accounts are the general primary functions of a
bank which is outlined by the Bank and Financial Act (BAFIA) 2073. In addition, RBB also
offers a wide range of deposit products and services that are customized as per the different
customer segments. Some of the key deposit services provided by RBB are:

[Link] Saving Account

Saving accounts are generally created with the vision of attracting low-income customers
who are willing to deposit money out of their income savings. It implies that low-income
customers who want to save money can deposit as much money as they desire in savings
accounts, apart from illegally obtained funds. Cheques up to the amount that the bank
specifies are acceptable

16
 forms of withdrawal for depositors. In terms of the number of withdrawals and the number
of deposits made within a certain time frame, RBBL places various restrictions on deposits.
The interest rate is low in comparison to fixed and revolving deposits, and it varies
depending on the state of the market.

The interest rate as per my internship period on the savings account was 6.45 percent.
Furthermore, to draw in deposits, RBBL provides a range of services to its clients, including
ATM/debit cards, insurance, mobile banking, and e-banking. The bank offers several different
savings account programs, such as the Mahalaxmi Savings Account, Chuna Muna Savings
Account, Teachers Savings Account, RBB Pension, Nepal Government Pension Account,
Nepal Police Savings Account, APF Savings Account, Student Super Savings Account, and
others. Pension, Nepal Police Savings Account, APF Savings Account, Student Super Savings
Account, and so forth.

[Link] Fixed Deposit Account

Also vastly known as time deposits where a certain amount of money is kept by the bank for
an agreed time frame, where the depositor cannot withdraw the amount, which is fixed,
however, enjoys a certain interest amount on it that is higher than any other account. In
short, the bank pays higher interest on such deposits.

RBB’s interest rate on fixed deposits (FD) was 11% per year when I started my internship
(i.e., 2079B.S as per 2080 it is 9.99%) where the minimum balance requirement for FD was
NRS. 25000 and the minimum time frame was 3 months to 5 years. Further, withdrawals
from FDs before maturity are subject to a penalty interest charge; interest is paid every
quarter; tax is withheld at source from interest on savings deposits by the Income Tax Act;
the nomination is possible; and strict secrecy is guaranteed. Individuals, businesses
operating as proprietors, partnerships, and corporations typically open fixed deposits.

[Link] Current Account

Demand deposits, commonly referred to as current deposits, are another service offered by
RBBL. Any sum may be deposited and withdrawn under this deposit at any moment
throughout a banking hour. Banks do not pay interest on non-interest-bearing deposits in
this case. The customer does not receive interest in this service-oriented deposit mechanism.
The

17
 holders of current accounts will also be given, by the agreement, the ability to collect checks
and buy bills.

3.6.2 Credit products

Credits generally known as loans are provided by banks and financial institutions to
individuals or organizations to generate some interest amount out of it. Furthermore, a form
of credit whereby a sum of money is granted to another party in consideration for the worth
or principal amount's repayment in the future. Therefore, creating loan products is an
important aspect for a bank to sustain itself in the competitive marketplace, and to fulfill the
requirement set by the NRB. So, the bank creates different credit products to attract the
customer to generate profit such as business credit, retail credit, agricultural credit, and so
on. Similarly, RBB has different schemed credit products for its different segment
customers, which are as follows:

[Link] Business Loan

Simply, is the loan product offered for a larger operation on a larger scale to business
owners who have a running company or are about to establish one. Business loan ranges in
various forms such as funded and non-funded loan, where RBB also provides these loans to
its business customers, some of them are:

A. Funded Loan: The various funded loans provided by RBB are:

 Overdraft/Hypothecation Loan: Basically, is a revolving credit facility that finances the
everyday operation of businesses working capital requirement.
 Pledge Loan: Such a loan requires the borrower to pledge assets as collateral to secure
funding, and RBB provides this short-term financing for up to 6 months against the pledge
of inventory to the business houses some examples can be sugar, jute mill, and so on.
 Term Loan: RBB also provides long-term financing to businesses such as for project
development, for procuring plant, machinery, equipment, and so on.
 Others: Other credit facilities provided by RBB are to extend both fixed-term loans and
working capital loans for infrastructure-based industries such as hydropower, cable car,
road, and so on for capacity addition for those industries. Also, in case of the bank not being
able to fund the amount for such big projects alone then it goes for a Consortium loan as
well through a member bank for mitigating risk and as well as fulfilling such project’s need.

18
 B. Non-Funded Loan: Such loans are the off-balance sheet exposure, RBB provides this facility
to its wholesale customers, and some of them are:
 Letter of Credit/LC: LC is provided to businesses to facilitate the import business in general,
where the bank is liable if the importer defaults on their liability.
 Bank Guarantee: RBB also provides bank guarantee facilities such as Bid bonds, advance
payment guarantees, financial guarantees, and counter guarantees on behalf of the customer
for facilitating trade business.

[Link] Retail Loan

Simply are the loan provided to an individual rather than a business which is comparatively lower
in scale and generates interest from it but is lower than a business loan such loan products
are created to attract the individual and is customized accordingly to the need of the
customer some of them are housing loan, vehicle loan, educational loan, and so on. Like
this, RBB has also various retail loan products for its specific individual customers which
fulfill the personal needs of the customers, some of them are housing loans, vehicle loans,
apartment loans, education loans, loans against gold, loan against fixed deposit, teacher’s
loan, Rastra seek loan (for the staff/employee, an employee of the government, partly owned
by the government, Nepali police, armed police force, etc.), and so on.

[Link] Agriculture Lending

RBB provides agricultural lending to farmers to generate income source out of it, as it is also
classified based on sector, and the loan is also classified on that basis some of them are:

 Agronomy: RBB provides the whole year’s credit needs for the cropping pattern, this
approach facilitates the clients with the provision of renewal of credit service at the start of
the year. Furthermore, RBB provides credit services to processors, wholesalers, and retailers
as well as seed producers.
 Livestock: RBB facilitates its services to support the production of milk and milk products,
poultry farming, pig farming, goat rearing, and so on, where credit supports working capital
as well as capital expenditure.
 Horticulture: The bank has extended its credit support to the production, processing, and
marketing of horticulture cultivation and management such as for tea, mango, orange, and so
on.

19
  Others: RBB not only supports the above agricultural sector but also facilitates its credit
support to apiculture/beekeeping as the sector has huge potential to thrive because different
species of honey-producing bees are found in Nepal, and other sectors are floriculture and
fish farming are also provided with credit facilities.

3.6.3 Remittance Services

In general, remittance is money that is sent from one party to another from one place to another,
and from one country to another country, which eases excess money exchange between
different places. The different types of remittance facilities offered by RBB are RBB- Korea
remit which is an agreement with Korea Exchange Bank (KEB) located in Korea, and
National Commercial Bank which is located all over the country.

Another remittance service provided by RBB is RBB Remit Online which is a web-based
remittance system that allows money to be sent to Nepal from worldwide, payment can be
collected from more than 258 branch offices of the RBB. Furthermore, RBB is associated with
foreign agencies for direct remittance through RBB Remit.

In addition, one can request a remit where the money can be credited to their account and the
transactions can be done easily through mobile banking, or other facilities under SWIFT.

3.6.4 Safe Deposit Locker Service

Safekeeping and providing a place for valuables is another function of any bank, which is the
same for RBB too. RBB offers its customers a safe deposit vault to store their valuables
such as jewels, medals, rare stamps, gold, important documents, mortgage leases, contracts,
and so on, where the bank charges locker margins that vary according to the size of the
locker.

3.6.5 ASBA, C-ASBA, and Mero Share Services

RBB has facilitated customers with applications supported by Blocked Amounts (ASBA).
Furthermore, RBB has assisted customers with Centralized Application Supported by Blocked
Amounts (C-ASBA) which enables the customer to apply on IPOs/FPOs by completing the
ASBA and CRN application forms. Further, the customers can register for CDSC’s Mero
Share after getting their CRN number, where the service is linked by entering the bank account
number and Demat account number which enables the customer to apply for shares from
any place over the internet.

11
0
 In addition, the bank charges some fees yearly for Mero Share service which is Rs50, and C-
ASBA which is Rs100. Not only does this bank itself apply for the IPOs to those who are
not competent to excess the service using the internet.

3.6.6 Student Financial Assistance Project (SFAFDB)

RBB has been associated with SFAFDB since 21 st November 2008 with the motive of
providing banking and consulting services to the students, also RBB has signed an
agreement with sub-consultants DEVTEC Nepal PVT LTD and research inputs and
development action (RIDA) for acquiring technical support.

Furthermore, the agreement makes the economically weak but meritorious students with the
scholarship opportunity who are currently studying in grades 10 and 12. Therefore, those grade
10 and 12 students will be selected based on Proxy Means Testing and will be provided
scholarships to study bachelor’s level.

On the contrary, RBB provides a special type of account for those students and facilitates
the service of legitimate transactions, where the requirement for account opening is simple
and hassle-free. Some of the requirements for account opening in RBB for SFAFDB are:

 The beneficiary is required to submit a photocopy of Nepalese citizenship.

 Necessary documentation such as a photocopy of the transcript of the marksheet.
 Three passport-size photos.
 A recommendation letter from the college or campus.
 Commitment note (Kabuliyatnama) of the student.

The bank has concluded that this program is expected to be beneficial to altogether 7,800
students.

3.6.7 Trade Finance

With globalization, the world is connected through a widespread and strong network, and with
the growth of it, some functions and products of banking industries are also evolving in
terms of providing legitimate sources of transactions that could be done internationally as
well as businesses. In short, it has allowed trading businesses.

Mostly, trade finance is the financial tool used by businesses to support international trade and
commerce. Trade finance makes it easier for importers and exporters to transact business

20
 through trade which is made accessible by banks and financial institutions. RBB as a
financial institution also provides trade financing to businesses that import goods and
services.

Therefore, RBB is offering various products related to international trade suitable to one’s
needs. Some of the major products and services that are provided by RBB are Letters of Credit
(LC), bonds/guarantees, counter guarantees, and short-term trade finance(bills).

3.6.8 Mobile Banking Services

The customers of RBBL can access mobile banking services, which allows them to access
their information about their account balances using the mobile banking application.
Additional features of this service include obtaining information about new products,
making cash deposits and withdrawals, getting access to information on pensions, and
getting alerts and notifications for events like loan repayments and transactions.
Additionally, consumers can profit from a variety of information services, such as the
locations of ATMs, product details, and general services. Furthermore, Mobile banking
requires a Rs. 250 registration charge in RBB, which must be renewed annually.

3.6.9 Internet Banking Services

RBB IBanking facilities convenient banking services to its users with the use of smart gadgets
through a server, which provides a secure and reliable banking solution to its users where
the facilities are offered to both individuals and corporate customers.

It facilitates transactions such as fund transfers, connect IPS Interbank Fund Transfer, Credit
card payments, landline bill payments, top-ups, and so on. Furthermore, customers with
Internet banking services can request cheque stoppage, and checkbooks too. Other general
inquiries can be done too such as general information, full information, and mini or full
statements.

3.6.10 RBB Card Services

The card facilities provided by RBB are simply categorized into two types they are:

1. Debit Card: Simply, is a rectangular piece of metal that is attached to a chip that is linked
to the credential of the user. It is the facility provided by banks to ease the life of the
customer and reduce their effort in being in line to withdraw money. With the growing
technology, the need for innovative products in the banking industry goes too, so such a card
21
could be said as

22
an innovative product. RBB issues chip-based visa debit cards which can be used at ATMs, and
Point of sale (POS) for payment of goods and services. The Visa Debit card is also
categorized as:
 Visa Domestic: It is valid in Nepal, India, and Bhutan, and the joining fee for the clients is
NPR. 250.
 Visa International: It is valid worldwide, whereas the joining fee includes U00000.
 Visa Travel Quota: Valid worldwide and issued against foreign currency facility.

2. Credit Card: RBB offers credit card facilities to customers, which is a VISA credit card
that is valid in Nepal, India, and Bhutan. It is accepted both in ATMs and POS terminals.
RBB provides a cash withdrawal facility of up to 10% of the credit limit, interest fee period
is a maximum of up to 45 days on any purchase made by the cardholder. The card validation
lasts up to 5 years. The credit limit for the credit card is NPR 20000/- to NPR 500000/-, and
the billing date for the credit is the 23rd of each English Calander.

3.6.11 Any Branch Banking Service (ABBS)

From all RBB’s locations around the nation, RBB has been offering the Any Branch Banking
Service. A customer from any branch of the organization can easily deposit money in any
branch and withdraw money from any branch using this service. Customers can access their
accounts online at any RBBL branch. Within the same district and the Kathmandu Valley, there
is no ABBS service charge. However, minimum fees of Rs 100 will be imposed up to Rs 2
lakhs for cross-district transactions (except those within the Kathmandu Valley), and 0.05%
will be charged over Rs 2 lakhs.

3.6.12 POS Service

POS, known as Point of Sale, is a device that is used to process transactions by retail customers.
The use of banking innovative products like debit cards, credit cards, mobile banking, and
so on have made businesses a safe and secure way of doing a transaction with their
customers. Therefore, POS comes into play for businesses which is provided by the banks and is
a physical device. Furthermore, RBB provides merchant businesses with support for
payment processing to help get paid in a secure way, which is a hassle-free settlement
process.

23
3.6.13 SWIFT
Society for Worldwide Interbank Financial Telecommunications (SWIFT) is a vast messaging
network used by financial institutions to send and receive money transfer instructions
quickly, accurately, and securely. In general, it is the same process as sending a wire
transfer. Through a member-owned cooperative called SWIFT, the financial sector may
conduct business with confidence, speed, and predictability. More than 10,000 businesses
and financial institutions trust SWIFT to exchange millions of standardized financial
communications daily as of June 3, 2012, across 210 nations.

As an active member of SWIFT, RBB offers money transfer services to its customers. The
person trying to send money through SWIFT to the bank must have a 12-digit account
number with RBB. Generally, the person should have an account in the bank or should
know the account number, account holder’s name, and bank branch to send the money. The
SWIFT code of RBB is RBBANPKA.

24
 CHAPTER 4
ANALYSIS OF ACTIVITIES PERFORMED

4.1 Background

Banks are composed of different departments withholding roles, responsibilities, and duties
among each department which differ from each other, where each department is so
important for carrying out day-to-day activities. As an intern, places in the bank have made
me realize how every aspect of a system is an important thing to be considered as a manager
or as an owner of any institution. As prescribed by the faculty of management of Damak
Multiple Campus I had to go through an 8-week internship period in Rastriya Banijya Bank
Limited. Working as an intern for 8weeks presented me with a valuable opportunity to gain
in-depth knowledge about the operations within the banking industry.

It allowed me to witness the day-to-day functioning of a bank and made me able to work in
a challenging environment within the banking operation. Like every other intern before me I
was provided a chance to work in CSD, Electronic Cheque Clearance (ECC), and pension
department whereby I was allowed to work in those departments as well. The intern supervisor
provided us with rotational opportunities so that we would not miss the chance to witness
the various operations carried out in those departments. Furthermore, the brief activities
done by me are elaborated below.

4.2 Activities Performed in CSD

The customer service department (CSD), commonly referred to as the front desk, holds
significant importance and plays a huge role in attracting new customers and retaining existing
customers for any business. It is a crucial part of many businesses and organizations as it
deals with providing support, assistance, and information to customers regarding their
products, services, or inquiries. Therefore, banks’ image and reputation also heavily rely on
the performance of the CSD.

CSD is one of the rashly busy departments in the bank and it is the very place that makes an
early impression on the clients, Excellent customer service can improve the organization’s
ability to lure potential customers and have a significant impact on bank profitability.
Therefore, the success and failure of sustaining the market depends heavily upon CSD. So,

25
the bank heavily emphasizes providing training and development programs for an employee
who carries out the function of CSD, we interns were also placed in the good hands of CSD
head Mira Shrestha who guided us throughout the work which was related to the CSD and
briefly provided the idea of how to interact and handle the situation in distress as well.

The work performed by CSD is account opening updates, closing accounts, issuing cheques,
providing statements, and so on. The various activities performed during the period of
internship while posted in CSD were account opening, account closing, looking into
customers’ queries about their account balance, and providing forms for extra facilities in new
account opening such as mobile banking, intern banking, ATM, and so on. The further
activities performed by the customer service department in RBB located in Kathmandu, Damak
are shown below in the figure.

Figure 4.2 CSD Functions Carried out in RBB

CSD function

Account opening KYC update Account closing Other functions

Saving account
Providing information

Fixed account Issuing cheques

Current account Issuing Atm

Provides statement.

Operations

Others information

4.2.1 Account Opening

While facilitating the account opening process my main responsibility was to inquire about
what type of account the customer wanted to open and the purpose behind it. Then I was
supposed to provide them with the necessary and accurate information regarding their
concern.

26
 Figure 4.2.1 Specimen of account opening form for individual and joint

The customer had to fill up the form in written format along with the two recent passport-
size photos and a photocopy of the citizenship card along with the original card itself, and
one additional document such as a national ID card, electricity bill, water bill, voter id,
password and so on if the customer is willing to open an individual account. On the other
hand, if he/she wants to open a joint account then he/she must present a document stating
what the relationship between them is. Also, being a government-owned bank, it has a huge
customer base where retired pension holders were drawn to open the account where the
same requirement of the above individual was required in the pension account, and
additionally, the pension patta was required along with the letter from the authorized
pension office. While minor account opening procedures were also made familiar to us the
additional document required was the birth certificate of the individual along with the
guardian citizenship card and two photos. Therefore, the bank clients are of two types:
individual and corporation, with the
27
extra knowledge and risk involved in the corporate accounts we interns were not given a
chance to handle corporate account openings.

4.2.2 KYC Update

An account holder cannot have access to their account if the account is not updated every 2
years. Part of my responsibility on it was to look into the system of the account holder and
see if the account was dormant, blocked, or not due to not updating an account, once I did
that and if the person is required to update their KYC then the necessary form to be filled
was handed over to them with necessary documents that are required to be attached on it, the
documents include two recent pictures, citizenship card, along with additional documents to
verify their exact location. Some of the times customers also visited to update their
signature, which was again done through the same procedure.

4.2.3 Account Closing

It was done solely at the request of the client for the closure of the account where the
account holders were made to fill in the form with the purpose of account closing reason on
it and their duly signature on it. All the unused cheques, ATM cards, and Locker Keys were
collected by the bank in the process of account closing, and the hold amount of 1000 was
released for the customer to have excess to it too.

4.2.4 Cheque printing

Many customers, both corporate and individual, would submit cheque requisition slips or open
new accounts daily. For new customers, a checkbook would be provided the next day after
the account was opened, but for existing customers, they would need to fill out a cheque
requisition form and we were taught to provide the slip to the head of the department i.e.,
Mira Shrestha after she verified the signature and documents of the customer, then further
we were supposed to print the cheque for that customer. The checkbooks were generally
printed up to a minimum of 10 numbers for an individual, whereas for the corporate clients
the requested cheques were printed. When a customer comes to collect their checkbook, it
will be prepared based on the requested number of leaves. Once the working hours were
finished, we were supposed to fill in all the cheque requisition slips, as well as the new
request checkbook form as well. However, sometimes due to system failure and printing device
error the cheque printed came out defective which were also filled separately to maintain the
record. Times, when a
28
customer requested the cheque but didn’t collect the cheque the same day, were also kept
securely on their behalf. Furthermore, the cheque was only issued to the customer who had
opened an account from the Damak branch, and people outside the valley who wanted to
issue cheques were given but within a valley, the customer must visit the branch they had an

account on.

Figure 1.2.4 Cheque Requisition Slip

4.2.5 Balance Inquiries

Throughout the internship, I learned how valuable it is to maintain confidentiality when one
client approaches inquiring about their account information, and how sensitively the bank is
exposed to the risk of fraud if not carefully approached. Customers often visit the CSD to
ask about their account balances, however, RBB taught me to be strictly confidential and
follow strict procedures to ensure the privacy of the account information. Therefore, the
balance regarding queries was only made available after confirming the account holder’s
identification through verification of their photo and signature in the system, and in very
hard situations calling out for their nominee’s name, or their father’s name.

4.2.6 Filing and Documentation

It was the most responsible part carried out by the CSD, alongside the computer-based
system interns were made responsible for managing various paperwork. This part included
organizing and filling different types of work performed during working hours so that they
could be recorded and stored in case of system failure or hacked, where all documents were
filled and segregated accordingly to reduce the chaos such as individual account opening
for the day

29
were filled and documented in their place, and KYC updated for the day would be filled
accordingly to its place, and so on.

4.2.7 Providing Account Statements

Customers demand the account statement for various purposes such as for basic looking into
the account activities, for providing the statement to necessary authority as a responsible
taxpayer, for applying for abroad, and so on. This service is available for all types of
accounts with satisfactory transactions done in the account. Initially, the account statement
is provided free of charge to the customer, however, if multiple times within a month the
account statement is requested by the customer, then NRP.300 was charged on it. Account
statements are only provided upon verification of the signer's signature or presentation of an
approved letter; they are not provided to anyone upon request. Customers are required to
complete a request form, which includes the account holder's name, account number, and
preferred period when they visit the customer service department to get an account statement.
The statement register keeps track of this data. The information is then input into the system,
printed, and handed over right away to the customer.

4.2.8 Providing Different Kinds of Forms

Customers may request specific forms through the CSD (customer service department). These
comprise the CASBA form (used for CRN registration) and the ASBA form (given to
consumers for participation in IPOs, right shares, mutual funds, and other share offerings),
among others. For people who want to open a Mero Share account, a form is provided.
Forms are also made available through the CSD for online banking, mobile banking, debit
cards, PIN loss, signature cards, signature changes, locker opening, dormant account
activation, Know Your Customer (KYC), and cheque loss. The CSD helps consumers obtain
the relevant paperwork and offers instructions on how to fill it out. Furthermore, ATM
forms were also distributed to the new customers who wanted them, and the ATM dispute
forms were also distributed to those customers who had done the transaction but didn’t
receive the amount. Further, whose ATMs got stuck in the ATM due to system failure were
also given the dispute form, and the ATM was collected on their behalf. Morely, the
customer who has tried to use an ATM in other banks except for RBB but if the card got
stuck in that bank, they were given a letter regarding the ATM recovery from that bank.

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 4.2.9 Photocopy, Scanning, and Mailing Documents

The intern is required to photocopy and scan papers such as licenses, passports, and
specimen cards. To make it simple to retrieve the documents when needed, they are entered into
the bank system. A KYC update from a different branch may occasionally need to be

scanned and provided by email in PDF format.

4.3 Activities Performed in the Electronic Cheque Clearing Department (ECC)

ECC is an innovative interbank check-clearing system that has taken the place of manual
check-clearing in Nepal. The original paper checks are converted to scanned images before
being presented electronically through secured communication channels from the member in
which they are deposited to the member on which they are drawn. This solution is image-
based, cost-effective, and increases check trust while also allowing for quicker access to funds.
The multilateral net clearing position is calculated by ECC and sent to the Nepal Rastra
Bank's settlement system for the direct member's net clearing position to be settled. Nepal
Clearing House Limited houses the central system of the clearing process.

When placed in ECC, I was again provided with the necessary insight into what ECC is why
it is done, and how it is done by the supervisors, then made familiar with the software and
carried out the clearing processes. And record keeping is key for ECC as it involves higher
risk related to money and transactions which need to be done within time for the customers.
Also, for ECC the cheque that has been rejected should be handled with care and should be
kept separately to ensure that it won’t be lost i.e., it should be handled with care against various
reasons as a customer might come back to collect it.

RBB facilitated the interns with the opportunity to investigate the system and operate it as
well as to better understand how the clearing of the cheque works. There were two types of
clearing methods they are:

 Express Clearance: This operates till noon from Sunday to Monday, while on Fridays only
express clearance is done till noon, for which the bank charges 100rs per cheque.
 Normal/Regular Clearance: The cheque under it was cleared from 10 AM to 3 PM from
Sunday to Thursday, where no charge was deducted from any cheques.

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 4.3.1 Cheque Entry in The System

I was primarily responsible for entering customer cheque details into the system, including the
necessary stamps and endorsement stamps and signatures. The bank staff provided me with
the necessary supervision and access to the system for this purpose, where for the
company’s cheque it was necessary to add the stamp of account payee, and for individuals
with 10lakhs and more than that also required account payee stamps which was the requirement
for clearing the cheque.

4.3.2 Record keeping and informing.

I was also responsible for maintaining records of clearing cheque received and whether the person
who came to clear the cheque had provided the necessary information on the slip or not to
further contact them and to let them know if the cheque was cleared or not, and if not for
what reason it has been rejected. Furthermore, maintaining a thorough register with details
such as the debtor bank, creditor bank, transferred amount, transfer date, debtor's name and
address, and creditor's name and address was an essential component of my position. Also,
once the system was closed, I was supposed to keep the record of accepted and rejected
cheques differently by creating separate files in the computer and renaming them by the
current date. For the next day if the client requested for the rejected cheque to be represented
again then I was responsible for doing it the next day while keeping in mind canceling the
previous day’s endorsement and endorsing the current day’s endorsement too.

4.3.3 Bounce Report

I was also responsible for providing the customer with the bounce report on their request. For
bouncing the report alternative days endorsement should be done and entered in the system
according to the date. Once, the endorsement had been stamped three times and the rejection
reason for the cheque was insufficient balance then the bounce report was ready, then I had
to print the report out and inform the client who requested it, and on the day of receiving it
then I had to stamp the cancel endorsement stamp on the cheque and present it to the
administration head then take the signature and date on it, then record it in the file and
handed it to the customer who requested it.

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4.4 Activities performed in the Administration Department

I had the chance to focus on the pension department while I was an intern in the
administration division. I was placed in the pension department and was made known about
the sensitivity of the work that goes into it, and how customers are present in the hope of
collecting the money the same day as they are there to renew the pattas. Morely, how the
forms should be filled in and in necessary situations how we intern had to fill it up on behalf
of the customer, as age is one of the restrictions for them which we should consider while
being/ working in the pension department. In the administration department, the following
tasks were completed:

4.4.1 Assisting customers to fill in the pension renewal form.

Through bank branches all over Nepal, RBBL pays monthly pensions to retired government
employees. Renewal of pension agreements, timely pension deposits into retiree accounts, and
appropriate response to pension non-credit situations are among the pension department's
main duties. Regardless of the location where they maintain their account, RBBL customers
can access pension-related services at the pension department. There is an upsurge in traffic
during pension disbursement times. To assist the workers in the pension department, an
intern was given that responsibility. Furthermore, pension payments are made to either the
account holders directly or, in the event of the pension holder's passing, to the nominee.

Every six months, pension pattas must be renewed. Therefore, providing the renewal form
to the pension holders is one of my main duties in this area. I am in the role of providing the
necessary assistance in filling out the form because many pension holders are elderly people
who could require it.

4.4.2 Renewal of the pattas

For the renewal of the pattas, the actual pensioner must be present at the bank for the
renewal of pension pattas. I need to cross-verify the pensioner's identity after confirming their
signature using the system's photo. I was permitted to help with the pension renewal process as
an intern. The renewal form must be filled out by the pensioner and sent to the appropriate
department together with their pension book. Before giving the book back to the retiree, I
would stamp it and add a date. An authorized representative, however, may submit the renewal
form on behalf of the pensioner in rare circumstances where they are unable to do so

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themselves due to immobility brought on by disease, accident, or advanced age.

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Furthermore, customers who failed to renew their patta every six months faced the problem
of access to the pension amount i.e., withdrawal of it, where I was also responsible in that
case to release it from the system and printing out the amount that was frozen, and
presenting the print out to the head of the administration for releasing the amount, also I was
told to make the customer wait 15-20 minutes whose amount were frozen.

4.5 Problem Identification and Solved

Every organization, from small businesses to huge commercial banks, faces difficulties and
problems. It is unavoidable to run into different issues and challenges while doing regular
operations in a bank. To handle and resolve these difficulties successfully and efficiently, it
is essential to use the proper managerial techniques. During my internship, I ran upon the
following issues, which I was able to solve:

4.5.1 Problem-related to incomplete information on the side of the customer.

Customers occasionally provided inaccurate information, either unintentionally or on purpose,
which presented serious difficulties for the bank's staff. I had the duty to inform consumers
about the value of providing thorough documentation while I was an intern. As an illustration,
I would let clients know about any necessary missing documents when they are asked to
open an account or conduct transactions. To get any small missing facts, I occasionally
called customers to follow up with them.

4.5.2 Problem-Related to the misunderstanding of the customer.

Customers may have misconceptions about the bank's services and the features that go along
with them, which may lead to dissatisfaction. These unrealistic expectations may cause people
to have inadequate impressions of the bank. It is essential in these circumstances for the
Customer Service Department (CSD) officer to address and clear up any misunderstandings,
ensuring that the bank keeps its valuable clients. The CSD officer may assist in managing
client expectations and preventing any potential customer losses for the bank by clearly
outlining the characteristics of the services and giving clear explanations of how they work.

4.5.3 Problem-related to the system operation.

Dealing with unhappy consumers who have been inconvenienced by system errors and
problems with various services is one of the ongoing difficulties the Customer Service

34
Department (CSD) officer faces. A customer's account can, for instance, be debited twice
for the same amount or an ATM might fail to dispense cash but still debit the account. The
bank's intranet system and services including E-banking, ATMs, and SMS banking may also
experience interruptions. The intern's job in these circumstances was to empathize with the
clients and provide them with potential solutions while striving to resolve the problem and
ensure client happiness.

4.5.4 Problem related to ATM cards.

As we’re aware ATM cards are occasionally stuck by machines in both its facilities and
those of other banks because of machine malfunctions and system difficulties. The CSD
officer collects and safely keeps ATMs there. After confirming that they have a legitimate
form of identification (a driving license or citizenship card), they are sent to the appropriate

consumers.

4.5.5 Problem related to communication.

It is critical to offer clear and comprehensible explanations in the customers' language of
choice to solve the issue of customers not having a thorough understanding of the
terminologies used in various forms and vouchers. Many clients can have just basic
educational backgrounds and be unfamiliar with banking terminology. One of my
responsibilities as an intern was to translate and clarify the terminologies so that clients
could quickly and accurately fill out the forms by understanding the material. This strategy
enables the accurate completion of the necessary documents and reduces the communication gap
while also improving customer understanding.

4.5.6 Problem-related to workload

The workload at the bank greatly increases during the busy opening and closing hours, making
it difficult to offer consumers rapid services. Customers are frequently unhappy because of
this. Increasing the number of staff members available to handle consumer transactions is
one practical answer to this problem. The burden may be distributed more effectively with
more people on hand, resulting in faster and more effective customer service. This increases
client happiness while also enabling more customers to use financial services, which
ultimately benefits the bank.

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4.5.7 Problem-related to mistakes made by employees.
Employee errors in a bank can have very negative effects on both the bank and its clients.
These blunders might involve everything from transactional problems to improper handling
of private client information. Some errors on the part of employees can be transcription
errors for instance mistakes in transferring funds, deposits, or withdrawals, mistakes while
data entering for say mistakes in inputting customer information. However, by combining
training, operational development, technology adoption, and a dedication to offering
outstanding customer service, banks must act and prevent these errors. Additionally, banks
should have a defined strategy for dealing with and resolving errors when they do occur.
This routine should include expressing regret to impact clients, fixing errors as soon as they
are discovered, and taking action to avoid repeat errors in the future.

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 CHAPTER 5
CONCLUSION

5.1 Lesson Learnt

In terms of developing and enhancing a variety of interpersonal skills, analytical skills, and
management abilities, the eight-week internship proved to be extremely beneficial for the
intern. The intern succeeded in changing their attitude and behavior in day-to-day living in
addition to gaining exposure to the professional world. Along with learning about the
banking industry, the intern also developed important social skills, interacted with senior
employees, and helped other interns create a positive work atmosphere. The internship
experience brought home how important within the organization values like accountability,
responsibility, and punctuality are. Customer satisfaction and retention inside a business
depend on treating them with respect and promptly responding to their inquiries.

The intern was guided and supervised by experienced staff members during the entirety of
the program. I was given responsibilities in several departments, including CSD, ECC, and
Pension, where I acquired firsthand experience with operational processes. Furthermore, the
internship offered a few significant insights, which are summed up as follows:

5.1.1 Learnt to use bank core software.

In the time of my internship, I was allowed to become familiar with the RBB’s core banking
software called PUMORI version IV, which enabled me to know the basics of how an
account is opened, how KYC is updated, and how the signature card is uploaded in the
respective account, and how to look into the account of the customer if they request for
balance queries, statement and so on. In addition, through this experience, I was able to
practice my computing skills while simultaneously getting more familiar with the multiple
codes used for various tasks. As a result of using the software regularly, my technical skills
have significantly improved.

5.1.2 Theorical knowledge implicated to practical knowledge.

One of the things I as an intern discovered is that doing an internship can significantly increase
the amount of practical knowledge one can acquire. All the knowledge learned in the

37
classroom is heavily used in real-world situations. It has aided in improved comprehension
of the issues and circumstances, and the solutions have been modified in line with the
knowledge learned in the classroom.

5.1.3 Identification of Different Banking Products and Services

As a student, I learned in class about the various terminologies of the banking industry, but
as a student, I was not able to comprehend how the banking products and services are
different from one another. However, the internship period in RBB made me understand not
only the basic terminology but also provided me with chances to identify how each product
and service is different in nature and how every product and service requires a different
approach to be sold to the customer. For instance, I knew about ECC theoretically, but the
internship period provided me with the opportunity to identify what goes into the process of

ECC.

5.1.4 Gained communication and negotiation skills in the professional field.

As a student of BBM, it is crucial to have communication and negotiation skills to survive in
the professional field. Throughout my internship, I saw how crucial communication is both
within and between departments. The importance of building relationships among staff
members was made abundantly evident to promote speedy and successful work completion.
This event made clear the importance of effective communication for success in both
professional and commercial efforts. It is difficult to obtain desired results and succeed in
many facets of professional and corporate pursuits without strong communication abilities. As
I was placed in various departments, I had to deal with various segmentation of customers
dealing with what they need and what their query is about had drastically changed my
communication pattern and skills, where dealing with corporate clients and individual
clients made me realize how negotiating terms with them differs as well.

5.1.5 Learn about work culture and working conditions.

The intern's key takeaway was the significance of a healthy organizational culture and how
it affects a productive workplace. This pertains to the degree of social and professional
atmosphere among the staff as well as with the customers, as well as to effective
communication skills, teamwork, participation, well-mannered behavior, and communication
skills.

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5.1.6 Developed teamwork skills
Through my internship, I improved my knowledge of how cooperation can speed up and
optimize procedures while also establishing more solid interpersonal bonds between team
members. Working together gave me helpful insights into my skills and shortcomings,
allowing me to turn them into pillars of strength. Therefore, working with the seniors and
with fellow interns had a significant impact on my teamwork skills.

5.1.6 Learning from Mistakes

The accuracy of the task we completed is not always guaranteed. We will always learn the
most valuable lessons about life from the mistakes we make. To avoid making the same
mistakes again, we must learn from our mistakes. To make wise selections and choices, we
must acquire wisdom and common sense. I discovered that the staff members have a strong

feeling of responsibility to avoid making the same mistakes twice and to learn from them .

5.2 Conclusion

The main goal of an internship is to get professional experience and put what has been
learned thus far into practice. The primary reason the students chose RBBL was because of
the bank's strategy of giving interns the chance to learn about the workplace and become
familiar with how various divisions operate. For me, completing an internship was a success
since it taught me a lot about how banks operate. Students who have completed internships
can attest that RBB is one of Nepal's top banks and has been successful in building strong
relationships with both its clients and workers.

Furthermore, the bank is similarly dedicated to the nation's economic development at the same
time. The bank wants to improve the quality of life for Nepalese citizens everywhere in the
country. However, as an intern, time constraints were big difficulties, but it was a pleasant
experience to learn so much at RBB in such a short amount of time. The internship period
meant a great deal to me which taught me about the banking industry, especially RBB. Over
the entirety of the internship and the writing of this report. The internship turned out to be
quite advantageous for the intern in many ways. The internship gave me important insights
into banking operations and functions even though I had little prior understanding of the
banking sector. This report specifically helped me comprehend the many sorts of deposits
that RBB Bank offers.

39
In addition, during the internship period, I learned how to interact with a variety of people,
communicate with senior staff, and interact with fellow interns to make the workplace more
upbeat, pleasant, and welcoming. Also, the supervisors were a great assistance in guiding
me through my internship program. Being an intern at RBB was a wonderful experience.
The working atmosphere was friendly. The RBB staff members interacted well with one
another and had healthy competitiveness and relationships. It was a pleasure to work with RBB's
entire crew because they were all completely professional while maintaining a family
atmosphere.

Furthermore, an excellent opportunity to gain a conceptual and analytical understanding of

the Nepali banking industry was working as an intern at RBB. As a result, the information
and experience gained from this study will undoubtedly help the intern pave the way for a
successful career and professional life. The learning environment would not have been
possible without the direction and supervision of the bank employees. Only with the
assistance, coordination, and inspiration of the bank employees were the students able to
quickly get familiar with how the bank operated. The experience helps students advance
their careers.

Moreover, the internship also taught me numerous crucial interpersonal skills in addition to
financial expertise. I learned how to engage with others, communicate with senior staff, and
work together with other interns to create a more welcoming and pleasant work atmosphere.
The intern understood the importance of behavioral components inside the company, as
maintaining customers depends heavily on appropriate behavior and kindly answering their
questions. Likewise, the internship provided the interns with an opportunity to put their
academic understanding into practice. We had an impression that working in a bank was
straightforward at first, however, we became aware of how tough the task was after closer
inspection and conversations with personnel. Also, the bank staff had to keep to a tight
schedule from early in the morning until late in the afternoon, and any tasks involving currency
were to be carefully balanced before they could leave the bank's grounds. The difficulties of
the job were highlighted by the requirement that each transaction be reported to the
corporate headquarters and approved before personnel could be released from their duties.

Despite this, the internship experience allowed me to learn why RBB Bank is regarded as
having great customer service. It is one of the most promising banks and can grow its
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market

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1
share by correcting its flaws, aiming to raise client satisfaction, and constantly delivering high-
quality services.

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Nepal Rastra Bank. (2022/23). Current macro economic and financial situation of Nepal.
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Nepal Rastra Bank. (2023).
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Rastriya Banijya Bank. (n.d.). Organization Structure. Retrieved from Rastriya Banjya Bank:
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rastriya-banijya-bank-limited-rbbl
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