i

COMPLIANCE DEPARTMENT OF RASTRIYA BANIJYA BANK

LIMITED, HEAD OFFICE, SINGHADURBAR PLAZA

By:

Bibhuti Khanal

People’s Campus

TU Exam Roll No: 26359/19

T. U. Reg. No: 7-2-271-54-2019

Internship Report Submitted to

Office of Dean

Faculty of Management

Tribhuvan University

In partial fulfillment of the requirements for the degree of

Bachelor of Business Administration (BBA)

at

People’s Campus

Tribhuvan University

Kathmandu, Nepal

July 2024
 i

Title Page
COMPLIANCE DEPARTMENT OF RASTRIYA BANIJYA BANK
LIMITED, HEAD OFFICE, SINGHADURBAR PLAZA

By:

Bibhuti Khanal

People’s Campus

TU Exam Roll No: 26359/19

T. U. Reg. No: 7-2-271-54-2019

Internship Report Submitted to

Office of Dean

Faculty of Management

Tribhuvan University

In partial fulfillment of the requirements for the degree of

Bachelor of Business Administration (BBA)

at

People’s Campus

Tribhuvan University

Kathmandu, Nepal

August 20
 ii

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 Rajan Bilas
Bajracharya, Faculty of Management at People’s Campus, in partial fulfilment 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.

-------------------
Bibhuti Khanal
July 2024
 iii

14-07-2024

APPROVAL SHEET
We certify that the Internship Report

Submitted by:
AYUSHMA POKHAREL

is an academic work submitted in partial fulfillment of the requirements for the degree
of Bachelor of Business Administration (BBA), Tribhuvan University under my
guidance and supervision. To the best of our knowledge, the information presented in
the internship report has not been submitted earlier and the intern successfully defended
the report at Saraswati Multiple Campus, Kathmandu.

........................................... ............................................ ............................................

Bikash Shrestha Mani Ram Aryal Dr. Golman Gurung

Supervisor Director Campus Chief
 iv

INTERNSHIP’S CERTIFICATE
 v

ACKNOWLEDGEMENTS
This report is prepared for the partial fulfilment of the requirements for the degree of
Bachelor of Business Administration offered by Tribhuvan University, based on the
activities performed and lessons learned during the internship period. I would like to
express my deep and sincere gratitude to Tribhuvan University, for providing a great
opportunity to enhance my knowledge and build up skills in practical working
conditions.

Firstly, I extend my deepest appreciation to Mr. Bikash Shrestha, my esteemed

supervisor, for his invaluable guidance, unwavering support, and constant
encouragement throughout this journey. His profound knowledge, insightful feedback,
and expert advice have been instrumental in shaping the direction of my research and
enhancing the quality of this report. I would also like to extend my sincere thanks to
Dr. Golman Gurung, the campus chief, Mr. Mani Ram Aryal, the program director for
their continuous support and encouragement during my internship.

I am immensely grateful for their support and exceptional mentorship provided by Mr.
Arthi Nath Boki Shrestha and other staffs during my internship. Their guidance,
expertise, and willingness to share their knowledge have been invaluable in shaping my
understanding of the industry and enhancing my professional skills. Lastly, I would like
to thank my parents, my teachers and my friends and seniors for their constant
encouragement and understanding required to complete this report.

Bibhuti Khanal

July 2024
 vi

TABLE OF CONTENTS
Title page ........................................................................................................................ i

Student’s declaration .....................................................................................................ii

Approval sheet ............................................................................................................. iii

Internship’s certificate .................................................................................................. iv

Acknowledgements ......................................................................................................... v

Table of contents ........................................................................................................... vi

List of tables .................................................................................................................. ix

List of figures ................................................................................................................. x

List of abbreviations ..................................................................................................... xi

CHAPTER I INTRODUCTION .................................................................................... 1

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

1.2 Objectives ............................................................................................................. 2

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

1.3.1 Organizational Selection................................................................................ 3

1.3.2 Placement....................................................................................................... 4

1.3.3 Duration Of Internship................................................................................... 4

1.4 Limitations ........................................................................................................... 5

CHAPTER II INTRODUCTION OF THE BANKING INDUSTRY ........................... 6

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

2.2 History Of The Banking Industry......................................................................... 6

2.3 Evolution And Growth Of Banking Sector In Nepal ........................................... 7

2.4 Classification Of Bank And Financial Institutions In Nepal ............................... 8

2.4.1 Central Bank .................................................................................................. 8

2.4.2 Commercial Banks ........................................................................................ 9

2.4.3 Development Banks ....................................................................................... 9

 vii

2.4.4 Finance Company ........................................................................................ 10

2.4.4 Microfinance Financial Institution .............................................................. 10

CHAPTER III INTRODUCTION OF THE RASTRIYA BANIJYA BANK ............. 12

3.1 Background ........................................................................................................ 12

3.2 Vision And Mission Of Rbbl ............................................................................. 13

3.3 Objectives Of Rbbl ............................................................................................. 13

3.4 Core Values Of Rbbl .......................................................................................... 14

3.5 Organizational Structure .................................................................................... 14

3.6 Ownership Structure ........................................................................................... 15

3.7 Products And Services Of Rbb........................................................................... 16

3.7.1 Deposits Services ......................................................................................... 16

3.7.2 Rbbl Loan Product ....................................................................................... 18

3.7.3 Rbbl Card Services ...................................................................................... 18

3.7.4 Rbbl Remittance Services ............................................................................ 19

3.7.5 Rbbl Safe Deposit Locker Service............................................................... 19

3.7.6 Asba Casba And Mero Share Service.......................................................... 19

3.7.7 Trade Finance .............................................................................................. 20

3.7.8 Mobile Banking Services............................................................................. 20

3.7.9 Internet Banking Services ............................................................................ 20

3.7.10 Any Branch Banking Service (Abbs) ........................................................ 20

3.7.11 Swift........................................................................................................... 21

CHAPTER IV ANALYSIS OF ACTIVITIES PERFORMED ................................... 22

4.1 Background ........................................................................................................ 22

4.2 Activities Performed .......................................................................................... 22

4.2.1 Review Of Accounts Exceeding Transaction Thresholds ........................... 23

4.2.2 Updating The Kyc And Customers Databases ............................................ 23

 viii

4.2.3 Compiling Ttr/Str Accounts In Excel .......................................................... 24

4.2.4 Kyc Update In Aml Software ...................................................................... 25

4.2.5 Account Update Alert .................................................................................. 25

4.2.6 Communicating With Branches................................................................... 26

4.2.7 Reporting The Updated Account ................................................................. 27

4.3 Problem Identified And Solved .......................................................................... 28

4.3.1 Problems Related To Incomplete Information ............................................ 28

4.3.2 Problems Related To Communication With Branches ................................ 28

4.3.3 Problem Related To Staff Knowledge Deficiency ...................................... 28

4.3.4 Problem Related To Branches' Neglectfulness ............................................ 29

4.3.5 Problems Related To The System Error ...................................................... 29

CHAPTER V CONCLUSION ..................................................................................... 30

5.1 Lesson Learnt ..................................................................................................... 30

5.1.1 Learnt To Use PUMORI Core Banking Software ....................................... 30

5.1.2 Time Management Abilities ........................................................................ 31

5.1.3 Networking And Socialization .................................................................... 31

5.1.4 Communication In Professional Capacity ................................................... 31

5.1.5 Development Team Working Skills ............................................................ 32

5.1.6 Operating Skills ........................................................................................... 32

5.1.8 Practical Implication Of Theoretical Knowledge ........................................ 32

5.2 Conclusion.......................................................................................................... 33

References

Appendices
 ix

LIST OF TABLES
Table 1. 1 Placement and duration of internship............................................................ 5
Table 3. 1 Share ownership structure ........................................................................... 16
 x

LIST OF FIGURES
Figure 3. 1 Organizational structure of RBB .............................................................. 15
Figure 4.1 PUMORI software ...................................................................................... 23
Figure 4.2 Preparing list of accounts in excel .............................................................. 24
Figure 4.3 AML software ............................................................................................ 25
Figure 4.4 MDaemon webmai ..................................................................................... 26
Figure 4.5 Intranet of bank........................................................................................... 27
 xi

LIST OF ABBREVIATIONS
% : Percent
ABBS : Any Branch Banking System
AD : Anno Domini
ADBL : Agriculture Development Bank Limited
AML :Anti-money laundering
ASBA : Application Supported by Blocked Amount
ATM : Automated Teller Machine
BBA : Bachelor of Business Administration
CASBA : Centralized Application Supported by Blocked Amount
CBS :Core Banking System
CDSC : Central Depository and Settlement Corporation Limited
CEO : Chief Executive Officer
FOM : Faculty of Management
KYC : Know Your Customer
NIBL : Nepal Investment Bank Ltd
NIDC : Nepal Industrial Development Corporation
NPR : Nepalese Rupee
NRB : Nepal Rastra Bank
POS : Point of Sale
RBBL : Rastriya Banijya Bank Limited
SWIFT : Society for Worldwide Interbank Financial Telecommunication
TTR :Threshold Transaction Reporting
TU : Tribhuvan University
USD : United State Dollar
 1

CHAPTER I

INTRODUCTION
1.1 Background

Tribhuvan University (TU) is the first university to offer management education and has
been exceptional in doing so since its establishment. Bachelor of Business Administration
(BBA) is a program under the faculty of management which aims towards enhancing
student’s managerial skills, intellectual ability, and executive personality (Tribhuvan
University, n.d.). Students must go through various core and optional papers along with
internship and report writing over the span of eight semesters. Currently, more than forty-
eight business schools offer BBA program in affiliation with Tribhuvan University. The
successful completion of 120 credit hours as prescribed with a minimum of a passing grade
in all courses with CGPA of 3 along with a minimum grade of ‘B’ in internship with a time
limit of seven years is required to graduate in this course (Edu Sanjal Pvt. Ltd., n.d.). BBA
is a combination of management as well as computer courses where students are made
aware of how computer studies compliments and enhances management capabilities in the
modern era of business.

The major objective of this program is allowing students to evolve critical thinking,
managerial expertise, and critical thinking skills by providing them knowledge from
different areas of management as well as computer science leading to a holistic
understanding of the business system. To attain this, BBA comprises of class lectures,
group discussions, guest lectures, case studies, role play, research work, project work
(individual and group), assignments (theoretical and practical), and term papers (Edu
Sanjal Pvt. Ltd., n.d.). BBA programs emphasize the development of effective written and
oral communication skills, as well as teamwork and leadership skills, to prepare students
for professional interactions and managerial roles.

Internship is an integral part of the Bachelor of Business Administration (BBA) program

at Tribhuvan University (TU), providing students with real-world exposure and practical
experience in a professional setting. Internships offer several significant benefits students.
Firstly, they provide students with an opportunity to apply the theoretical knowledge they
 2

have acquired during their coursework to real-life business scenarios. By working in actual
business environments, students gain practical insights into various business functions and
develop a better understanding of how concepts and theories are implemented in practice.
(Colleges Nepal, n.d.). Tribhuvan University's BBA program recognizes the importance of
internships in bridging the gap between classroom learning and real-world application. By
incorporating internships into the curriculum, TU aims to produce well-rounded graduates
who are equipped with both theoretical knowledge and practical skills, making them more
marketable and ready to contribute to the business world. (Tribhuvan University, n.d.).

An internship serves as a platform for individuals to collaborate in teams, handle work

pressure, and apply classroom knowledge to real-world situations. It can be an excellent
opportunity for someone to determine if a career in the corporate or banking sector is
suitable for them. Internships instill a sense of eagerness in individuals by exposing them
to a range of possibilities and intellectual growth. Successful internship experiences equip
students with essential qualities needed in today's business world. The entire internship
process allows students to gain firsthand experience of the work pressure they are likely to
encounter in the future, familiarizing them with corporate culture and fundamental business
practices of global standards (Vinay, 2022).

In order to fulfill the academic requirements of Tribhuvan University (TU), I chose to work
as an intern in Rastriya Banijya Bank Limited, a commercial bank dealing with variety of
financial services, including extending loans, accepting deposits, and managing various
financial transactions for its customers. This report is based on internship completed in
Rastriya Banijya Bank Limited at Singhadurbar Plaza, Kathmandu from April 14th to June
21th, 2024, encompassing the activities performed as well as the cognizance divination at
the organization.

1.2 Objectives

The extensive objectives of internship in any organization are to gain practical experience
and apply theoretical knowledge in a professional work environment. Additionally,
learning and adaptation of organizational culture, work ethic and professional standards of
the industry along with collaborative efforts with team members and effective
 3

communication with stakeholders, clients, and external experts are also some of the general
purposes of doing internship. The objectives that were set prior to the internship were:

1. To have a thorough understanding of the banking operations, guidelines, regulations,

and conditions in Nepal.

2. To explore the practical application of theoretical knowledge in a workplace setting.

3. To gain a comprehensive understanding of the functioning of the compliance
department.
4. To develop effective and efficient communication skill and develop relationship
management.
5. Gain exposures to latest technology and software used in banking industry.

1.3 Methodology

This report followed a comprehensive and systematic approach in order to study the
activities performed in the organization. Most studies are based on this approach as it
enables the researcher to gather information from primary as well as secondary sources,
analyses and draw findings from it as per their requirements. During my internship,
majority of information is collected via observation and experience. Primary data includes
instructions and suggestions from supervisors, daily interactions with employees of
Rastriya Banijya Bank Limited and clients. Similarly, the annual reports of the bank, bank
brochures, the bank's official website www.rbb.com.np, and the Nepal Rastra Bank's
official website www.nrb.org.np are secondary data sources utilized in preparing the report.

1.3.1 Organizational selection

When choosing an organization for an internship, it is essential to consider a range of

factors to ensure a fruitful experience. Primarily, the organization should align with our
career goals and field of interest. Opting for a reputable and credible organization within
our desired industry can provide valuable exposure and networking opportunities.
Considering the size and structure of the organization is also crucial, as larger companies
may offer structured internship programs, while smaller organizations can provide a more
firsthand and intimate experience. As a student specializing in finance and banking, an
 4

organization associated with offering banking services and assistance would be a great
option for me to further expand my knowledge and understanding of the banking world.

Therefore, I have chosen a banking firm that goes by the name of Rastriya Banijya Bank
Limited for internship. Rastriya Banijya Bank Limited is the oldest bank in Nepal and is
often termed as government in Nepal. It is also one of the most successful A-class
commercial banks in Nepal for a longer period of time. I approached the head office of the
bank on April 11th, 2024, with all the necessary documents like CV, recommendation letter
from college, citizenship copies etcetera. After a brief review of the documents by human
resource department, I was duly selected as an intern at the head office. I started my
internship three days after the submission date on April 14th, 2024. The internship lasted
for a period of 60 days marking its completion on June 30th, 2024.

1.3.2 Placement

The internship commenced from April 29th and I was assigned to work at the compliance
department of the bank. I was given tasks accommodating various purposes from briefly
checking the accounts, reporting for the threshold transaction limit and updating the KYC
for anti-money laundering. After my internship began a couple of staffs had to temporarily
withdraw from the job due to distinct reasons hence, I was able to fill in those vacant
positions too. As the staff were friendly and incredibly supportive it was quite easy to
transition in between different tasks and duties.

1.3.3 Duration of internship

The internship requirement for Tribhuvan University’s BBA program is eight weeks long,
during which interns must indulge themselves in organization’s daily tasks and activities,
my internship started from April 29th and lasted till June 30th. Working hours were not
predetermined as the work generally started from 10 AM but the ending time varied on
different weekdays. In general, duty hours ended at 5 PM but it extended during month-
end as a lot of work piled up during those days. My immediate supervisor paid close
attention to my punctuality, sincerity, work interest, and various other factors throughout
my tenure in the organization.
 5

Table 1. 1
Placement and duration of internship

Name of Department Weeks

Compliance department 1-8 weeks

The overall internship period was extremely beneficial and rewarding for me as I got hands
on experience with the overall organizational work ethic and culture. I also learnt to
manage my time to accommodate various duties and finish assigned tasks in given
deadlines. Table 1.1 depicts the details of department and work duration.

1.4 Limitations

1. This report is subjective in nature, as it is based on the subjective experiences and

perspectives of the intern. Different interns may have different experiences within the
same organization, which can lead to varying interpretations and biases in their reports.
2. This limited perspective may not deliver a comprehensive view of the organization or
industry.
3. Internship reports lack the broader context of the organization's operations, industry
trends, and market dynamics. Without a comprehensive understanding of these factors,
it can be challenging to fully analyses and evaluate the intern's experiences and
observations.
4. This report is typically prepared within a set timeframe, usually near the end of the
internship. This constrained period may limit the intern's ability to deeply analyze and
reflect on their experiences, possibly resulting in incomplete or hurried evaluations.
5. Depending on the nature of the internship and the organization, certain information
may be subject to confidentiality agreements or restrictions. This can limit the intern's
ability to provide detailed or specific information in their report, particularly when it
comes to sensitive data or proprietary information.
 6

CHAPTER II

INTRODUCTION OF THE BANKING INDUSTRY

2.1 Background

A bank is an authorized and regulated financial institution that offers a variety of financial
services, including extending loans, accepting deposits, and managing various financial
transactions for its customers. It gathers deposits from the general public, corporate entities,
and private institutions, offering them a certain interest rate. The bank then channels these
funds into productive sectors and distributes accumulated funds to those in need, charging
interest in return (Bank). Banks are often referred to as intermediaries between savers and
borrowers.

Banks raise funds by collecting deposits from businesses and individuals, and they also
invest in corporate and government bonds. Their primary liabilities consist of deposits,
while loans and bonds make up their primary assets. Commercial banks are financial
institutions that engage in various banking activities and participate in general finance,
trade, and commerce. These banks operate as business firms under strict supervision and
control by the central bank.

In essence, a bank can be defined as a financial institution that accepts deposits, allows for
withdrawal on demand, and provides loans and credits to individuals and businesses on a
commercial basis (Investopedia).

2.2 History of the banking industry

The concept of banking originated as humans recognized and developed the use of money,
which brought both convenience and complexity to their lives. Initially, money lenders and
landlords acted as informal banks, but over time, their activities became more organized,
leading to the evolution of banking as an institutional concept. The history of banking is
closely intertwined with the history of money.

In ancient times, religious temples served as the earliest banks, where wealthy individuals
stored their gold due to the temples' reputation for safety and security. The Jews of
 7

Lombardy were believed to be early bankers, conducting financial transactions at

marketplace benches. The term "bankrupt" emerged from the practice of depositors
breaking the benches when bankers were unable to meet their liabilities. The Bank of
Venice, established in 1157 AD, is considered the world's first ancient bank. Subsequently,
the Bank of Barcelona and the Bank of Geneva were founded in 1401 and 1407,
respectively. The Bank of England, established in 1694 AD, marked a significant milestone
as the first modern bank. Despite various challenges faced by the banking sector over time,
banks have persevered and have become an essential aspect of human life in the twenty-
first century (History of banking).

Today, banks have transformed from simple institutions that accept deposits and provide
loans into versatile service providers, catering to customer needs and ensuring complete
security. They play a vital role in society, impacting individuals' lifestyles and the overall
economy of a country. However, the banking sector has experienced ups and downs,
including the global financial crisis of 2008, which resulted from poor banking practices
and had severe repercussions worldwide. Despite these challenges, banks have remained
resilient and continue to be integral to the global economy, serving as a fundamental
element of human life.

2.3 Evolution and growth of banking sector in Nepal

The initiation of institutional development in Nepal began with the establishment of

Tejarath adda during the tenure of Prime Minister Ranoddip Singh in 1867 AD. This
institution, fully subscribed by the government, provided credit loans to the public at a 5
percent interest rate, accepting securities such as gold, silver, and ornaments. In 1937 AD,
Tejarath adda was replaced by the establishment of Nepal Bank Limited, the first
commercial bank in Nepal, with an authorized capital of 10 million Rupees. The primary
role of Nepal Bank was to handle government transactions.

In 1955 AD, the Nepal Rastra Bank Act was introduced to improve the banking system,
leading to the establishment of Nepal Rastra Bank in 1956 AD as the central bank of Nepal.
Its main responsibilities included supervising commercial banks and guiding the nation's
basic monetary policy. Additionally, in 1956 AD, the Industrial Development Centre was
 8

established, later transforming into Nepal Industrial Development Corporation (NIDC). As

monetary transactions became more complex, Rastriya Banijaya Bank (RBB) was
established in 1966 AD as a fully government-owned commercial bank. In 1964,
Agriculture Development Bank Limited (ADBL) was established to support and promote
the agricultural sector of the country.

In 1974 AD, the Commercial Bank Act 2031 was enacted to regulate all commercial banks
uniformly under a single act. During this phase, in 1984 AD, the Nepal government
established five rural development banks under the control and supervision of Nepal Rastra
Bank. Until 1980, the banking sector in Nepal was entirely government-owned, with
ADBL, NBL, RBB, and NRB serving as the pillars of the financial institutions.

However, with the objective of providing quality banking services, efficiency, and healthy
competition, the private banking sector was initiated. NABIL Bank, the first joint venture
bank in Nepal, was established to lead this change. Subsequently, numerous commercial
banks have been established in Nepal. Currently, there are 21 commercial banks operating
in the country till now.

2.4 Classification of bank and financial institutions in Nepal

A modern banking system demands different types of banking services. So, to fulfill all the
functions demanded by the customers, different types of banks emerged in the banking
industry specializing in different functional areas and with different purposes. The highest
authority on the pyramid is the central bank of Nepal, Nepal Rastra Bank. Classification of
the bank with a minimum paid-up capital required is shown in the table in Appendix 1.

2.4.1 Central bank

A central bank is a financial institution given privileged control over the production and
distribution of money and credit for a nation or a group of nations. In modern economies,
the central bank is usually responsible for the formulation of monetary policy and the
regulation of member banks. Nepal Rastra Bank (NRB), the Central Bank of Nepal, was
established in 1956 under the Nepal Rastra Bank Act, 1955, to discharge the central
banking responsibilities including guiding the development of the embryonic domestic
 9

financial sector. Since its establishment, there has been significant growth in both the
number and the activities of the domestic financial institutions in the country. The major
function of central banks is issuing banknotes and coins, act as bankers/ agent/financial
advisor of the government of Nepal, manage and operate foreign exchange reserve, issuing
license to commercial banks and financial institutions to carry on banking and financial
business and to regulate, inspect, supervise and monitor them and so on.

2.4.2 Commercial banks

Commercial banks are financial institutions that specialize in accepting deposits and
providing loans to borrowers. They serve as depository institutions, with their primary
assets being loans and liabilities consisting of deposits. Initially, commercial banks were
established to cater to the needs of the commercial sector and have a wider range of
customers compared to other depository institutions. Their main functions include
accepting deposits, granting loans, issuing letters of credit, providing bank guarantees,
engaging in foreign exchange transactions, and more. These banks play a crucial role in
the economic development of a country. Nepal Bank Limited, established in 1937, holds
the distinction of being the first commercial bank in Nepal. Its primary purpose is to serve
the people and offer banking services across the country. Rastriya Banijya Bank,
established in 1965, is the second commercial bank in Nepal. Alongside these banks, there
are several other commercial banks such as Everest Bank, Nepal SBI Bank, Himalayan
Bank, NIC Asia, and others. These banks provide a range of banking services, including
internet banking, mobile banking, ATM services, and more, contributing to the economic
growth of the nation. According to Nepal Rastra Bank's report for 2022/23, there are
currently 21 commercial banks operating in Nepal. Appendix 2 provides a list of the
commercial banks along with their names.

2.4.3 Development banks

Development banks are financial institutions that play a crucial role in promoting and
developing various sectors of the economy, including industry, agriculture, and more.
These banks are multipurpose institutions with a primary objective of fostering
development. They are established to support and promote industries, agriculture, tourism,
 10

and hydropower sectors by fulfilling their significant funding requirements. Development

banks provide financing in the form of lump-sum amounts, accepting movable or
immovable properties as collateral. They also facilitate letters of credit as per the
requirements of the Nepal Rastra Bank (NRB). Additionally, these banks engage in foreign
currency transactions, offer overdraft facilities, and raise capital through shares,
debentures, bonds, or other financial instruments specified by the NRB. According to the
Nepal Rastra Bank's report for mid July 2022, there are currently 17 development banks
operating in Nepal (Nepal Rastra Bank, 2022/23). These banks play a vital role in
supporting the growth of the industrial sector, agricultural sector, and the overall economy.
Some notable development banks include Narayani Development Bank, Karnali Bikash
Bank, Kamana Sewa Bikash Bank, Corporate Development Bank, among others. They
contribute to the expansion of the manufacturing, agriculture, and other sectors of the
nation's economy.

2.4.4 Finance company

In principle, finance companies differ from commercial banks as they do not typically
accept deposits from the public. Instead, they raise funds by issuing securities and then
provide loans to individuals and small businesses. However, in the case of Nepal, finance
companies are permitted to accept deposits as authorized by the Nepal Rastra Bank (NRB).
These companies primarily operate in areas where commercial banks may be hesitant to
take risks. Their primary objective is to offer personal and business loans and provide
financing for various projects. As of the (Nepal Rastra Bank, 2022/23) report for January
2023, there are currently 17 finance companies operating in Nepal. Some notable examples
include Samriddhi Finance Company, Goodwill Finance Company, Manjushree Finance
Limited, and others. These finance companies contribute to meeting the financial needs of
individuals and businesses in Nepal, playing a significant role in the country's financial
landscape.

2.4.4 Microfinance financial institution

Microfinance finance financial institutions are D-class financial institutions. And it

provides banking services to low-income or unemployed individuals or groups who don’t
 11

have direct access to banking services. They provide small forms of loan (micro credit)
which other institution doesn’t provide most of the loan are provided on a group guarantee
basis. They raise funds either by issuing debt or equity or by obtaining loan and grants from
native and foreign banks as prescribed by NRB. There are 65 microfinances in Nepal as
per current data (Nepal Rastra Bank, 2022/23). Nepal Grameen Bikash Bank Limited,
Nirdhan Utthan Bank Limited, Sana Kishan Vikas Bank, etc. are some of them helping to
uplift the living standard of people.
 12

CHAPTER III

INTRODUCTION OF THE RASTRIYA BANIJYA BANK

3.1 Background

Rastriya Banijya Bank (RBB) Limited, established on January 23rd, 1996 (10 Magh,
2022), is a renowned and respected financial institution in Nepal, known for its stability
and dedication to community service. It has a rich history spanning almost 50 years and
was initially established under the name RBB, but currently operates under the Bank and
Financial Institution Act (BAFIA) and Company Act (CA) 2063. Licensed by the NRB
(Nepal Rastra Bank, 2023) as an 'A' class commercial bank, RBB has become an essential
part of the Nepalese economy.

RBB offers a wide range of banking services to a diverse customer base, including
individuals from all walks of life, institutional customers, and business communities. The
bank has played a significant role in the monetization of the economy, the elimination of
dual currency in the market, the promotion of financial literacy, and the growth of the
industrial, commercial, and financial sectors in the country. Its customers come from
various sectors, including banks, insurance companies, trading houses, airlines, hotels, and
more.

RBB is highly regarded and has the largest number of customers across all 77 districts and
7 provinces of Nepal. With a workforce of 3000+ employees, the bank has established a
wide presence throughout the country through its 293 branches, 28 branchless banking
outlets, and 205 ATM (Wikipedia, 2023). The bank's reputation is evident in its high
deposit base and the increasing demand for branch expansion in different regions. By
efficiently allocating resources in all sectors of the economy, RBB has made a significant
impact on the national economy, contributing to increased production and generating
employment opportunities within the country.

The unwavering trust and support of its customers, along with the backing of the
government, well-wishers, and the general public, have positioned RBB as the most
reliable bank in the country. The bank has established correspondent relationships with
major international banks worldwide, facilitating trade finance, personal fund transfers,
 13

and inter-bank fund transfers via SWIFT. RBB also collaborates with Western Union and
International Money Express, two leading person-to-person fund transfer networks, to
promote remittance business. Moreover, as the second largest commercial bank in the
country, RBB has played a crucial role in the development of the financial sector, including
banks and insurance companies, through its promoter's role. The bank has also made
contributions to the trade, industry, agriculture, hydropower, health, and education sectors
through its loan disbursements (Rastriya Bank Limited, n.d.) .

With its strong public trust, reflected in its substantial deposit base and the growing demand
for branch expansion, RBBL stands as a pillar in Nepal's financial landscape. The bank
remains fully committed to contributing its best efforts to the socio-economic development
of the country and its people in the future.

3.2 Vision and mission of RBBL

The vision statement encapsulates the long-term aspirations of a company, outlining its
strategic direction and guiding its efforts and resources toward achieving a favorable future.
RBBL's vision is to become "The most credible bank for one and all, always contributing
towards the nation's prosperity” and provide innovative banking services to everyone,
every time and everywhere for the economic development of the nation (Rastriya Banijya
Bank, n.d.).

On the other hand, the mission statement defines the unique purpose of a company and sets
it apart from others in terms of its products, markets, and technology. RBBL's mission is
to enhance the quality of life for all Nepalese by removing barriers to financial access and
empowering them to reach their full potential. The bank aims to achieve this by providing
safe, innovative, and affordable financial services through an extensive network of efficient
centers, socially responsible business processes, and a compassionate workforce.

3.3 Objectives of RBBL

Rastriya Banijya Bank has played a pivotal role in advancing the nation's economic
development by offering a comprehensive range of banking services to its customers. It
has actively contributed financial assistance across multiple sectors, including agriculture,
 14

rural areas, industry, and commerce, thereby playing a crucial role in their growth and
development.

The main objectives of RBB are:

1. Focus on providing innovative financial services.

2. Increase in capital base of the bank by meeting the minimum capital requirement.
3. Business growth and increase in market share.
4. Enhance operational efficiency.
5. Sustainable increase in profits.
6. Focus on empowerment of deprived classes.

3.4 Core values of RBBL

The core values of Rastriya Banijya Bank Limited (RBBL) in brief are:

1. Integrity and Ethics: Upholding high moral standards and conducting business with
honesty and transparency.
2. Customer Centricity: Placing the needs and satisfaction of customers at the forefront of
all operations.
3. Continuous Learning and Innovation: Embracing a culture of continuous learning,
improvement, and innovation to provide cutting-edge banking solutions.
4. Teamwork and Collaboration: Encouraging teamwork, cooperation, and mutual
support among employees to achieve shared goals.
5. Social Responsibility: Contributing positively to society and the environment through
responsible business practices and community engagement.

3.5 Organizational structure

An organizational structure defines how tasks are organized and directed within a
company, creating a hierarchical framework that guides the coordination of activities
aimed at achieving the organization's objectives. Rastriya Banijya Bank Limited (RBBL)
is headquartered at Singha Durbar Plaza in Kathmandu. The board of directors assumes the
responsibility of policy-making and providing guidance to the management team (Rastriya
Banijya Bank, n.d.). All board members, including the Chairman, are nominated by the
government. The Chief Executive Officer (CEO) holds the executive power within the
 15

organization. Devendra Raman Khanal currently serves as the CEO of RBBL. RBBL is
divided into various departments, each headed by a department manager who reports to the
CEO or a higher-level executive. Each department is responsible for specific functions and
activities related to their area of expertise. Overall, the organizational structure of RBBL
enables clear communication channels, effective decision-making, and efficient
coordination among different departments and subdivisions. The organizational structure
of RBBL can be observed in figure 3.1.

Figure 3. 1
Organizational structure of RBB

3.6 Ownership structure

The ownership structure of Rastriya Banijya Bank (RBB) typically involves majority
ownership by the Government of Nepal, with the Ministry of Finance holding a significant
stake. RBB operates as a government-owned bank, reflecting its strategic role in national
 16

economic development and financial stability initiatives. The ownership structure of RBBL
bank is as follows:

Table 3. 1
Share ownership structure
Particulars % of holdings
Government 100

3.7 Products and services of RBB

Commercial banks offer a range of essential services, including deposits, remittances,

loans, clearings, and more. In response to the evolving landscape and growing competition,
Rastriya Banijya Bank Limited (RBBL) has introduced numerous additional services to
attract customers. RBBL strives to simplify banking transactions for its customers by
offering a diverse array of services. The bank genuinely cares for its customers and
endeavors to meet their demands and requirements by providing a wide range of services.
Some of the products and services offered by RBBL include the following:

3.7.1 Deposits services

RBBL's primary function and service to its customers is the provision of deposits. Deposits
are a fundamental aspect of any banking institution, as outlined by the Bank and Financial
Institution Act (BAFIA) of 2073. RBBL offers a wide range of deposit products and
services tailored to different customer segments, aiming to encourage individuals and
representatives from various sectors to entrust their funds with the bank. Below are some
of the key deposit services provided by RBBL.

3.7.1.1 Saving account

In savings deposit, those customers who have low-income and willing to save money are
allowed to deposit as much as they want except illegal money. The depositors are allowed
to withdraw their money by cheques to the amount prescribed by the bank. RBBL imposes
some restrictions on the deposits regarding the number of withdrawals and the amount of
deposit in the given period of time. There is low interest rate compared to the fixed and
revolving deposits and it fluctuate as per the market scenario. There is 6.45 percent interest
 17

rate on the savings account as of my internship tenure. RBBL offers various services to
customers such as ATM/debit card, insurance, mobile banking, e-banking etc. with the aim
to attract deposit. Under the Saving Account, the various schemes offered by the bank
include, Mahalxami Saving Account Chuna Muna Saving Account, Teachers Saving
Account, RBB Pension, Nepal Government Pension Account, Nepal Police Saving
Account, APF Saving Account, Student Super Saving Account and So on.

3.7.1.2 Fixed deposit account

A fixed deposit is also known as time deposit. Under this deposit, customer is required to
a fixed amount with bank for a specific period generally by those who do not need money
for stipulated period of time. The bank pays a higher interest on such deposit. The bank
offers a higher interest rate (9.99% per year) on such deposits, distributed quarterly. In
emergencies, customers can borrow 90% of the deposit with extra interest. Fixed deposit
is generally opened by individuals, sole trading, partnership and corporation.

3.7.1.3 Call deposit account

RBBL provides the services of call deposit which is the combination of current deposit and
fixed deposit to meet customer’s requirement in flexible way. To advance with the
competition, this deposit was introduced. Such deposit is generally made by firms,
corporation and bank and financial institutions. The interest rate on this deposit is
dependent on the negotiations between the bank and clients. Normally the practice of
interbank borrowing and lending activities are conducted through this product. This deposit
is not maturity specific. The depositor generally is entitled to withdraw any amount upon
request.

3.7.1.4 Current deposit account

RBBL also provides the facility of current deposit which is also known as the demand
deposit. Under this deposit, any amount may be deposited and withdrawn any time within
banking hour. This is non-interest-bearing deposit where banks don’t pay any interest on
the deposit. It is service oriented deposit mechanism where the customer does not receive
any interest. Cheques / bills collection and purchase facilities also be granted to the current
account holders as per agreement.
 18

3.7.2 RBBL loan product

A loan is a debt provided by an entity (organization or individual) to another entity at an

interest rate, and evidenced by a promissory note which specifies, among other things, the
principal amount of money borrowed, the interest rate the lender is charging, and date of
repayment. The loans offered by Rastriya Banijya Bank are as follows:

3.7.2.1 Business loan

The business loan provides finance to support or expand the existing business and also to
start up the new business. RBBL provides full range of banking solution to meet the
financing needs. Business loan can be further classified as Funded and Non- funded loan.

3.7.2.2 Retail loan

RBBL provides the retail loan to meet the personal needs of the customers or individual. It
includes Housing loan, Vehicle loan, Apartment loan, educational loan, Apartment loan,
Loan against gold, Loan against fixed deposit, Teacher’s loan, Rastra sewak loan, Personal
loan and others.

3.7.2.3 Agriculture lending

RBBL provides the agriculture lending loan to uplift the living standard of framers and the
low-income peoples to help in their daily lives to generate income source. The different
types of agriculture loans that RBBL provides under agriculture lending are; agronomy,
livestock, horticulture, floriculture, beekeeping and many others too.

3.7.3 RBBL card services

RBBL provides different kind of card services to its customer. Following are the card
service offered by RBBL are:

3.7.3.1 ATM/Debit card

Debit Card is an electronic card integrated for the access to the bank account of the
customer for any transactions up to the available balance of the customer. RBB issues Chip
based Visa Debit card and it can be used Automated Teller Machine (ATM) and also can
be used in Point of Sale (POS) for payment of goods and services. RBB Visa Debit cards
are accepted in all the ATM and POS machine associated with the VISA network.
 19

3.7.3.2 Credit card

RBB Offers the contactless VISA credit card that is valid in Nepal, India and Bhutan
providing the secured, easy and convenient digital payments. RBB Credit card is accepted
at both ATMs and POS Terminals. Ecommerce is enabled in RBB credit card for any
transactions in Nepalese currency (NPR). RBB Credit cards are processed through all of
the branches. The Credit Limit for credit card is NPR 20000/- to NPR 500000/-. The billing
date/statement date for card is 23rd of each English Calander.

3.7.4 RBBL remittance services

RBBL provides the service of remittance which helps peoples and its customers to transfer
money from one place to another and from one country to another country which helps in
easy excess of money exchange between different places. The different types of remittance
facilities offered by RBBL are, RBB-Korea remit, RBB online remit and SWIFT.

3.7.5 RBBL safe deposit locker service

Rastriya Banijya Bank Limited offers its customer a safe deposit vault to store it their
valuables like jewels, medals, rare stamps, and negatives for important photos important
documents such as insurance policies, family records such as birth certificates, deeds, titles,
mortgages, leases, contracts, bonds, certificates of deposit. The locker margin and charge
vary according to the size of the locker.

3.7.6 ASBA CASBA and mero share service

RBBL has started C-ASBA service that lets you to apply on IPO staying home. The service
is absolutely free and available through all the branches of RBBL. Customers can also get
the Application Supported by Blocked Amount (ASBA) service from RBBL. Customers
with an RBBL account can apply for IPO/FPO shares by completing the C-ASBA
application form. Customers can also register for CDSC's Mero share service by entering
their bank account number and Demat account number, after which they can apply for
shares from any place over the internet. The yearly charge for Mero share service is Rs 50
and C ASBA is Rs 100.
 20

3.7.7 Trade finance

Through the wide spread and strong network of correspondent banking relationships,
RBBL is capable to offer various products related to international trade suitable to the
needs of customer. Some of the major products and services in this regard are as follows.

Features

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

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

3. Collections (Clean and documentary)

4. Short-term Trade Finance (import, export and bills)

3.7.8 Mobile banking services

RBBL customers can utilize the mobile banking service to obtain details regarding their
account balances. This service offers additional functionalities such as receiving
information about new products, conducting cash deposits and withdrawals, accessing
pension-related information, and receiving alerts and notifications for activities like loan
repayments and transactions. Moreover, customers can benefit from various information
services including ATM locations, product information, and general services. The
registration fee for mobile banking is Rs. 250 and needs to be renewed on an annual basis.

3.7.9 Internet banking services

RBB facilitates convenient banking with a click of a mouse and where you can access your
account from anywhere in the world. RBB provides a secure and reliable banking solution
to its customer. RBB offers personal iBanking for the individual customer and Corporate I
Banking for Corporate customers. It includes transaction like Fund Transfer, Connect IPS
Interbank Fund Transfer, Credit Card Payment, Landline Bill Payment, Postpaid Bill
Payment, Recharge - NTC GSM Prepaid, NTC CDMA Prepaid, Load e-wallets – Esewa,
Khalti, and so on.

3.7.10 Any branch banking service (ABBS)

RBB has been providing Any Branch Banking Service from all branches across the
country. Through this service a customer from our any branch can easily deposit his/her
 21

money in any branch and withdraw his/her money from any branch. Customers may view
their accounts through any RBBL branch online. ABBS service charge is free within the
Kathmandu valley and within the same district. However, for the cross district (except for
within the Kathmandu Valley) transaction, minimum charges of Rs 100 will be charge up
to 2 Lakhs and 0.05% will be charged above Rs 2 Lakhs.

3.7.11 SWIFT

SWIFT is a member owned cooperative through which the financial world conducts its
business operation with speed, certainly and confidence. As of June 3, 2012 more than
10,000 financial institutions and corporations in 210 countries trust SWIFT every day to
exchange millions of standardized financial messages. Taking advantage of being an active
member of SWIFT, Rastriya Banijya Bank offers money transfer service from any bank of
world through SWIFT code: RBBANPKA.
 22

CHAPTER IV

ANALYSIS OF ACTIVITIES PERFORMED

4.1 Background
Internship at any organization enables the intern to gain insights and practical skills which
prove extremely beneficial and serve them throughout their life. My internship, Rastriya
Banijya Bank was also the same. It allowed me to witness firsthand the day-to-day
functioning of a bank, giving me a realistic perspective on the business. Internship provides
efficient way for students to gain work experience before graduation. The main motto
towards this program is to apply the theoretical knowledge into practical world. It helps
the students to generate problem-solving ideas and enhance the technical and
communication skills to work efficiency. It is provided to perform the different task and
activities to gain knowledge and enrich skills. In a bank, there are several departments each
with their own functions. Every department is equally important for operation of day-to-
day activities. During my internship, I typically worked in the compliance department
mainly on the call center operated by the compliance. I worked alongside seasoned
professionals, assisting in various KYC update and reporting, calling and mailing to the
branch manager and checking the account for AML. Overall, an internship in Rastriya
Banijya Bank offered a unique platform to develop my expertise and explore potential
career path.

4.2 Activities performed

Being a one of the largest banks Rastriya Banijya Bank have many departments, among
which I was assigned to perform task on the compliance department focusing on the call
center which acts as a bank's internal police force throughout my internship period. First, I
acquired a comprehensive view of how to work with the core banking software PUMORI
and anti-money laundering software. I also gained the knowledge about threshold
transaction limit and different software relating to anti money laundering. The detailed
analysis of the overall activities performed in compliance department are given below:
 23

4.2.1 Review of accounts exceeding transaction thresholds

A transaction threshold is a predetermined limit set by financial institutions. When a

transaction exceeds this limit, it triggers an alert for further scrutiny. These thresholds are
based on regulatory requirements, risk assessments, and historical transaction data. This
review aims to analyze and assess these accounts to ensure compliance with financial
regulations and to identify any potential suspicious activities. Using the PUMORI, the
accounts that triggered transaction limits were checked thoroughly. All the details of
account holder were analyzed and if not updated, communicating it to the branches. Figure
4.1 illustrates the core banking system PUMORI.

Figure 4.1
PUMORI software

4.2.2 Updating the KYC and customers databases

KYC, short for Know Your Customer, refers to the process of identifying and verifying the
true identity of customers. It is a crucial procedure for banks and financial institutions to
 24

understand their customers, including their beneficial ownership, source of funds, and the
nature of their business, among other relevant information. This aids banks in managing
risks effectively. Most of the branches haven’t following the circular of updating KYC
form in Core Banking system (CBS) of Rastriya Banijya Bank. Therefore, I was assigned
in KYC call center under supervision of compliance department.

4.2.3 Compiling TTR/STR accounts in excel

After completing the KYC updates, I compiled a list of accounts that have been updated
and those that have not been updated in an Excel sheet for reporting purposes. Accounts
that have been updated are labeled as U/TAML (Updated Trust AML), indicating they have
undergone the necessary Anti-Money Laundering (AML) checks. Accounts denoted as
PNU (Pumori Not Updated) could not be updated due to incomplete or incorrect
information on the CBS. After compiling the list of accounts, I sent it to the supervisor via
email for further reporting. Figure 4.2 demonstrate an example of compiling the accounts
in excel sheet.

Figure 4.2
Preparing list of accounts in excel
 25

4.2.4 KYC update in AML software

The primary objectives of implementing KYC guidelines are to prevent banks from being
misused by criminal elements for money laundering purposes, both knowingly and
unknowingly. As part of my responsibilities, I was tasked with periodically updating the
KYC details of individual customers that exceeded transaction thresholds for reporting.
Using the AML (Anti money laundering) software, I updated the accounts that triggered
the threshold transactions limits with the information filled in the PUMORI for the
reporting. Figure 4.3 shows the AML software.

Figure 4.3
AML software

4.2.5 Account update alert

A crucial aspect of my role in the Compliance Department was to communicate with the
branch offices regarding incomplete information of their account holders needed for their
 26

KYC updates. Using the bank's webmail system, we would email the respective branch
offices of account holders whose transactions triggered the threshold, providing details for
updating their KYC information in the CBS. Figure 4.4 demonstrate the MDaemon
webmail.

Figure 4.4
MDaemon webmail

4.2.6 Communicating with branches

Being a part of call center operated by compliance department, where my responsibilities

included placing and receiving phone calls to branches. Branches contacted us for
 27

clarification regarding KYC updates, account screening, completing mandatory fields, and
any other queries they had. Every day, we make outbound calls to assist branches with
missing information, update their Know Your Customer (KYC) details, ensure accurate
information is entered into the CBS (Core Banking System), and remind them regularly
about these updates. For contacting with the branches, Intranet of RBB which consisted of
branch code, manager’s name, phone number and email address was accessed. Figure 4.5
represents the intranet of the bank.

Figure 4.5
Intranet of bank

4.2.7 Reporting the updated account

After finishing updates for all accounts, I would compile a report and send it to the
supervisor for additional processing related to threshold transaction reporting. A deadline
of 15 days was set for reporting on threshold transaction limits, and all updated accounts
were promptly submitted for further reporting. Remaining accounts which weren’t been
able to update due to the missing information was checked daily and ensured that branches
received the necessary information until updates were completed.
 28

4.3 Problem identified and solved

Challenges and issues are an inherent part of any organization, ranging from small
businesses to large commercial banks. In the course of carrying out daily operations in a
bank, it is inevitable to encounter various problems and obstacles. It is crucial to employ
appropriate managerial skills to effectively and efficiently address and resolve these issues.
Throughout my internship, I encountered and successfully resolved the following
problems:

4.3.1 Problems related to incomplete information

Occasionally, branches may enter incomplete or inaccurate customer information into the
CBS, whether knowingly or unknowingly. It was my responsibility to thoroughly analyze
the accounts. If any inaccuracies were identified, I would contact the branches to emphasize
the importance of completing mandatory KYC fields in the CBS. For example, most of the
time there would be no information of the account holder due to which we couldn’t update
the KYC. Another common problem was the citizenship issue date being inaccurate and
missing of three generation names. I would inform the corresponding branches to update
the information correctly.

4.3.2 Problems related to communication with branches

Most of the time, the branches would answer the calls immediately, but communicating
with some of them proved to be difficult. Some branches either failed to pick up the call,
or even when they did, it was hard to explain the errors in the information submitted. I
encountered aggressive responses from some branches when I informed them about the
required KYC update. They frequently claimed to have completed the customer's
information when, in reality, they had not. Some of the branches created trouble due to
which the TTR was delayed.

4.3.3 Problem related to staff knowledge deficiency

Due to inadequate training and development of the organization's staff, productivity has
decreased. Staffs are not technically sound in their respective fields. Some of them didn't
know what information to fill out when updating the KYC. The staff appears to lag behind
 29

in the same field of work as mine, which may create problem in the upcoming futures when
no intern would be assigned in this department.

4.3.4 Problem related to branches' neglectfulness

The major issue stemmed from either customer or staff negligence in accurately recording
customer information. Many mandatory fields in the CBS were left incomplete or filled
with inaccurate information. Insufficient attention was given to record-keeping, resulting
in accounts being opened with incomplete details. This led to significant challenges during
KYC updates.

4.3.5 Problems related to the system error

There arise some technical problems too due to failure of system (pumori) that led to barrier
in effective operation. Sometimes the AML software wouldn’t operate due to which
updating the accounts on time was very difficult.
 30

CHAPTER V

CONCLUSION

5.1 Lesson learnt

The internship proved to be highly advantageous for the intern in terms of acquiring and
enhancing a variety of interpersonal skills, analytical capabilities, and management
aptitude. Not only did the intern gain exposure to the professional realm, but they also
succeeded in transforming their attitude and behavior in their day-to-day life. Moreover,
apart from gaining insights into the banking sector, the intern learned valuable lessons on
socializing with people, interacting with senior staff, and fostering a harmonious work
environment with fellow interns. The internship experience underscored the importance of
behavioral aspects, such as punctuality, accountability, and responsibility within the
company. Ensuring that customers are treated with proper respect and addressing their
queries in a friendly manner is crucial for their satisfaction and retention within the
organization.

The value of being careful and meticulous in my work, as well as the need to acquire a
keen eye for recognizing errors or inconsistencies, were all lessons I learned through this
experience. members. Here are some of the main lessons I learned and insights I gained
through my internship:

5.1.1 Learnt to use PUMORI core banking software

During the internship, I had the opportunity to work with the core banking software
PUMORI version IV, which is specifically designed to support the day-to-day operations
of the bank. This experience not only allowed me to apply my computational skills but also
enabled me to familiarize myself with the different codes utilized for various tasks. As a
result, my technical abilities were greatly enhanced through hands-on practice with the
software.
 31

5.1.2 Time Management abilities

Updating all KYC accounts listed under threshold transactions, contacting branches via
mail and phone, and ensuring timely updates for mailed accounts under strict deadlines.

Interns quickly learn the value of effective time management. Prioritizing tasks, setting
realistic goals, and efficiently allocating time become essential skills to meet deadlines and
deliver high-quality work within the given time constraints. Along with balancing my
internship my studies, attending classes, completing assignments, and preparing project
reports, I gradually acquired the skills to efficiently manage my time between my studies
and internship.

5.1.3 Networking and Socialization

As part of my internship, the interns were required to engage in interactions with both
employees and other branches, with the aim of establishing a network. This experience
enabled me to develop the necessary skills to effectively communicate and interact with
professionals, clients, and colleagues. Through these interactions, I not only improved their
interpersonal skills but also learned the importance of proper and polite communication
with others. I recognized that the ability to socialize well with others can lead to positive
feedback from customers and coworkers, ultimately resulting in improved efficiency and
effectiveness in their tasks.

5.1.4 Communication in professional capacity

Effective communication is a crucial skill that holds significance not only in our personal
lives but also in the professional realm and business environments. During my internship,
I observed the importance of communication within and between departments. There was
a clear emphasis on establishing rapport among staff members to facilitate efficient and
effective task completion. This experience highlighted the fact that strong communication
skills are essential for success in professional life and business endeavors.
 32

5.1.5 Development team working skills

The key to achieving outstanding results lies in working as a cohesive team, where every
member engages in honest cooperation and maintains a supportive and compassionate
attitude towards one another. Through my internship, I gained a profound understanding
of how teamwork can expedite and simplify tasks, while also fostering stronger personal
relationships among team members. Working collaboratively allowed me to gain valuable
insights into my own abilities and weaknesses, enabling me to transform them into
foundational strengths.

5.1.6 Operating Skills

While working as an intern, I learnt that most of theoretical knowledge has a practical
implication on the banking field. The accounting concept, finance concept, computer
application, concept of law, psychology, human resource management, organization
behavior, marketing communication, business communication, economics, statistics,
operation management and many other theories were applied practically.

5.1.7 Adapting to technological advancements

Technology plays a significant role in modern banking practices. During my internship, I

embraced the opportunity to learn and work with banking software and tools. By
proactively engaging with technology, I gained proficiency in using banking software
applications for tasks such as keeping record, updating kyc and reporting. Continuously
developing my technological skills allowed me to work more efficiently and adapt to the
changing technological landscape in the banking industry.

5.1.8 Practical implication of theoretical knowledge

The internship experience has proven to be invaluable in terms of providing practical

knowledge. It became evident that the theoretical knowledge gained in the classroom is
extensively applied in real-world scenarios. This practical exposure greatly enhanced the
intern's comprehension of various problems and situations, enabling them to effectively
apply the solutions learned in the classroom.
 33

5.2 Conclusion

During my internship at Rastriya Banijya Bank, I learned several valuable lessons that have
had a lasting impact on my professional growth. First and foremost, I realized the
importance of adaptability and flexibility. The dynamic nature of the workplace taught me
to embrace change and be open to new challenges and opportunities. I learned to quickly
adjust to shifting priorities and work effectively in a fast-paced environment.

I developed a strong sense of professional ethics. Working in a professional setting

emphasized the importance of integrity, accountability, and maintaining confidentiality. I
learned to handle sensitive information with discretion and adhere to ethical standards in
all aspects of my work. Moreover, my internship offered exposure to industry-specific
knowledge, allowing me to understand the intricacies of the audit profession and apply
theoretical concepts to real-world scenarios. Embracing technological advancements
further enhanced my skills, as I learned to leverage audit software and tools to streamline
processes and improve accuracy.

Internships at RBBL Bank provided interns with an in-depth understanding of the real
working environment, interpersonal and communication skills, organizational culture and
behavior, professional traits, and team-building attitude, as well as commercial bank
functioning principles. Intern observed and participated in a variety of activities that help
in the development of interpersonal skills, communication skills, and competency that
widened internee knowledge, perception of the work, confidence, and so on to function in
a real-world working environment.

In addition to banking knowledge, the intern also learned several important interpersonal
skills during the internship. They gained insights into socializing with people, interacting
with senior staff members, and collaborating with fellow interns to create a more
comfortable and friendly work environment. The intern recognized the significance of
behavioral aspects within the organization, as customer satisfaction greatly relies on proper
behavior and addressing their queries in a friendly manner to ensure their retention.

Furthermore, the intern discovered ample opportunities for commercial banks in Nepal to
expand their services and customer base. Initially, I had a layman's understanding that
working at a bank was relatively easy. However, upon closer observation and conversations
 34

with employees, I realized the demanding nature of the job. I discovered that leveraging
collective knowledge and skills can lead to innovative solutions and successful outcomes.
Additionally, I honed my time management skills. Balancing multiple tasks and deadlines
taught me to prioritize effectively and organize my work in a way that maximizes
productivity. I learned the importance of setting realistic goals, managing my time
efficiently, and seeking assistance when needed.

Overall, my internship at Rastriya Banijya Bank Limited was a transformative experience

that provided me with a comprehensive understanding of the audit profession. The lessons
and insights I gained continue to guide my career path, shaping me into a skilled and ethical
professional. I am confident that the knowledge and skills acquired during my internship
will serve as a solid foundation for my future endeavors in the field of banking.
 1

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https://www.rbb.com.np/content/introduction-rastriya-banijya-bank-limited-rbbl

Tribhuvan University. (2009). Facukties. Faculty of Management. Retrieved from

http://tribhuvan-university.edu.np/faculties/facultyof-management
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Vinay. (2022). The importance of an internship: Top 5 reasons why internships are
critical. Retrieved June 30, 2022, from https://capital-placement.com/blog/the-
importance-of-an-internship-top-5-reasons-why-internships-are-critical/

Wikipedia. (2023). Rastriya Banijya bank. Retrieved from https://rb.gy/ccfec

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Appendices

Appendix 1

Minimum paid-up capital requirement

Class Bank and financial institution Minimum paid up capital (In Million)
A Commercial Banks 8000
Development Banks
National Level 2500
B
4-10 Districts 1200
1-3 Districts 500
Finance Companies
C National Level + 4-10 districts 800
1-3 Districts 400
Microfinance Companies
National Level 100
D Regional Level 60
4-10 Districts 40
1-3 Districts 10
(Source: www.nrb.org.np)