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Intern Approved

The document is an internship report by Asmita Oli, submitted to Tribhuvan University, detailing her experience at Rastriya Banijya Bank Limited. It outlines the objectives, methodology, and activities performed during her eight-week internship, focusing on customer service operations. The report aims to provide insights into the banking sector and the practical application of academic knowledge in a real-world setting.

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0% found this document useful (0 votes)
28 views54 pages

Intern Approved

The document is an internship report by Asmita Oli, submitted to Tribhuvan University, detailing her experience at Rastriya Banijya Bank Limited. It outlines the objectives, methodology, and activities performed during her eight-week internship, focusing on customer service operations. The report aims to provide insights into the banking sector and the practical application of academic knowledge in a real-world setting.

Uploaded by

sujataoli54
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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CUSTOMER SERVICE OFFERED BY

RASTRIYA BANIJYA BANK LIMITED

An Internship Report

Submitted By:
Asmita Oli
Exam Roll No: 25162/19
T.U. Reg. No: 7-2-22-248-2019
Patan Multiple Campus

Submitted To:
Office of the Dean
Faculty of Management, Tribhuvan University

in partial fulfillment of requirements for the degree of


Bachelor of Business Administration (BBA)

September 2024
STUDENT DECLARATION

This is to declare that I have completed the internship report entitled “CUSTOMER
SERVICE OFFERED BY RASTRIYA BANIJYA BANK LIMITED” under the
guidance of Dr. Makshindra Thapa in partial fulfillment of the requirements for the
degree of Bachelor of Business Administration at Faculty of Management, Tribhuvan
University. This is my original work, and I have not submitted it earlier elsewhere.

…………………..
Asmita Oli
September 2024

ii
INTERNSHIP COMPLETION LETTER

iii
CERTIFICATE FROM THE SUPERVISOR

This is to certify that the summer project entitled “CUSTOMER SERVICE


OFFERED BY RASTRIYA BANIJYA BANK LIMITED” is an academic work
done by Asmita Oli submitted in the partial fulfillment of the requirements for the
degree of Bachelor of Business Administration at the faculty of Management,
Tribhuvan University under my guidance and supervision. To the best of my
knowledge, the information presented by her in the internship report has not been
submitted earlier.

………………………..
Dr. Makshindra Thapa
September 2024

iv
APPROVAL SHEET

This is to certify that the Internship Report

Submitted by:
Asmita Oli
T.U Registration No: 7-2-22-248-2019
Exam Roll No.: 25162/19

Entitled
“CUSTOMER SERVICE OFFERED BY
RASTRIYA BANIJYA BANK LIMITED”
Found satisfactory in scope and quality for the partial fulfillment of BBA
program, Faculty of Management, Tribhuvan University and thus,
approved by the Approval Committee and has been forwarded for
examination.
Approval Committee
Supervisor
Signature:
Name:
External Examiner
Signature:
Name:
Head, Research Committee:
Signature:
Name:
Designation:

v
ACKNOWLEDGEMENTS
This is my immense appreciation to present the internship report of Bachelor of
Business Administration (BBA) assigned by Tribhuvan University. I am thankful to
Mr. Kabiraj Acharya, Director of Patan Multiple Campus for all his support and
Rastriya Banijya Bank for incorporating internship duration which provides a
wonderful opportunity to study the practical aspect of the course and implementation
of the theory in real field. It has been my privilege to work as an intern in Rastriya
Banijya Bank Limited, one of the most reputed banks in the country.

I would like to render my wholehearted thanks to Mr. Vijaya Prakash Poudel, Branch
Manager who despite being extraordinarily busy with his own duties took time to guide
me on the correct path and allowing me to carry out my project at their esteemed
organization. I would like to extend appreciation to all the staff of different departments
of RBB who cooperated with me and unquestionably supported me throughout the
internship duration.

I would like to express my sincere gratitude to my supervisor Mr. Makshindra Thapa


Faculty of Patan Multiple Campus for the valuable guidance and advice whose help,
stimulating suggestions and encouragements helped me in every step for preparing my
report.

Finally, I would like to send my warm greetings and obligations to all those who are
involved in this report directly or indirectly.

Thanking you
Asmita Oli
BBA 8th Semester

vi
TABLE OF CONTENTS

STUDENT DECLARATION ........................................................................................ii


INTERNSHIP COMPLETION LETTER ................................................................. iii
CERTIFICATE FROM THE SUPERVISOR ............................................................ iv
APPROVAL SHEET..................................................................................................... v
ACKNOWLEDGEMENTS .......................................................................................... vi
TABLE OF CONTENTS ............................................................................................vii
LIST OF TABLES ....................................................................................................... ix
LIST OF FIGURES ...................................................................................................... x
LIST OF ABBREVIATION ........................................................................................ xi
CHAPTER I INTRODUCTION ................................................................................ 1
1.1 Background of the Study ...................................................................................... 1
1.2 Objective of the Study .......................................................................................... 2
1.3 Methodology ......................................................................................................... 2
1.3.1 Organization Selection ................................................................................... 3
1.3.2 Placement ....................................................................................................... 3
1.3.3 Duration .......................................................................................................... 3
1.3.4 Nature and Sources of Data ............................................................................ 4
1.3.5 Activities Performed ...................................................................................... 4
1.4 Limitation of the Study ......................................................................................... 5
1.5 Organization of the Study ..................................................................................... 6
CHAPTER II INTRODUCTION OF THE INDUSTRY ......................................... 7
2.1 Concept of the Bank ............................................................................................. 7
2.2 History of Banking Industry ................................................................................. 8
2.3 History of Banking in Nepal ................................................................................. 9
2.4 Present Scenario of Banking Industry in Nepal .................................................. 11
2.5 Commercial Bank ............................................................................................... 13
2.5.1 Roles of Commercial Bank .......................................................................... 13
2.5.2 Challenges and Opportunities Faced by Commercial Banks ....................... 14
CHAPTER III INTRODUCTION OF THE ORGANIZATION .......................... 16
3.1 Introduction to Rastriya Banijya Bank ............................................................... 16
3.2 Core Philosophy of RBB .................................................................................... 17
3.2.1 Vision ........................................................................................................... 17
3.2.2 Mission ......................................................................................................... 17
3.3 Strategic Objectives of RBB............................................................................... 18
3.4 Organizational Structure and Design .................................................................. 18
vii
3.4.1 Branch Offices.............................................................................................. 19
3.4.2 Board of Directors ........................................................................................ 20
3.5 Technology Used ................................................................................................ 20
3.6 RBB’s Major Departments ................................................................................. 20
3.6.1 Customer Service Department ..................................................................... 20
3.6.2 2 Loan and Credit Department ..................................................................... 21
3.6.3 Cash and Deposit Department ...................................................................... 21
3.7 RBB’S Major Commercial Banking Products and Services .............................. 21
3.7.1 Deposit facility ............................................................................................. 21
3.7.2 Loan and Advances ...................................................................................... 25
3.7.3 ATM facility ................................................................................................. 26
3.7.4 Mobile Banking Services ............................................................................. 26
3.7.5 Internet Banking Services ............................................................................ 26
3.7.6 Any Branch Banking Service (ABBS) ......................................................... 27
CHAPTER IV ANALYSIS OF ACTIVITIES DONE AND PROBLEM SOLVED
...................................................................................................................................... 28
4.1 Introduction ........................................................................................................ 28
4.2 Customer Service Department (CSD) ................................................................ 28
4.2.1 Activities Performed in Customer Service Department ............................... 29
4.2.2 Problems Identified in Customer Service Department ................................. 31
4.3 Electronic Cheque Clearing Department ............................................................ 31
4.3.1 Process of Electronic Cheque Clearing ........................................................ 32
4.3.2 Problems Identified in Clearing Department ............................................... 33
4.3.3 Problems Solved in Clearing Department .................................................... 33
4.4 Other activities performed .................................................................................. 33
4.5 SWOT Analysis of RBB..................................................................................... 35
CHAPTER V CONCLUSION AND LESSON LEARNT ...................................... 38
5.1 Conclusion .......................................................................................................... 38
5.2 Lesson Learnt ..................................................................................................... 39
BIBLIOGRAPHY
APPENDICES

viii
LIST OF TABLES

Title Page no.

Table 1 Duration of internship……………………..………………….……...3


Table 2 Activities performed during intern period…………..……………….5
Table 3 Classification of financial sector in Nepal…………………………..11
Table 4 Branch Network……………………………………………………………......19
Table 5 Board of Directors RBBL…………………………………………………....20

ix
LIST OF FIGURES

Title Page no.

Figure 1 Organizational Structure……..………………………………………..19

x
LIST OF ABBREVIATION

BBA: Bachelor of Business Management


NRB: Nepal Rastra Bank
RBBL: Rastriya Banijya Bank Limited
NGO: Non-Governmental Organization
CSD: Customer Service Department
ATM: Automated Teller Machine
KYC: Know Your Customer
NIDC: Nepal Industrial Development Corporation
IT: Information Technology
FUI: Financial Intelligence Unit
IOP: Initial Public Offers
BFIA: Bank and Financial Institute Act
CA: Company Act
BLB: Branch Less Banking
ECC: Electronic Cheque Clearing
PAF: Poverty Alleviation Fund
CEO: Chief Executive Officer
BOD: Board Of Directors
OD: Overdraft a/c
ABBS: Any Branch Banking Service
SMS: Short Message Service
NCHL: Nepal Clearing House Limited
SWOT: Strength-Weakness-Opportunity-Threat
GDP: Gross Domestic Product
NPA: Non-Performing Asset
PSU: Public Sector Undertaking
IME: International Money Express
AML Anti-Money Laundering
A.D. Anno Domini
B.S. Bikram Sambat
B.C. Before Crist

xi
CHAPTER I

INTRODUCTION
1.1 Background of the Study
An internship is an opportunity offered by employers to students interested in a related
industry. Internship program is a career- related work experience conducted as an
integral part of the academic program. Internship is the process of working as an
assistant or trainee to gain practical experience in an occupation. To expose the
students to the actual working environment, internship has been included as
mandatory requirement for the successful completion of the four- year Bachelor of
Business Management (BBA) under Tribhuvan University.

Internship is an opportunity to observe, learn and understand the corporate culture.


Internship can be regarded as the first step towards career development. Internship is
very essential to get exposure to ‘real’ business projects and problems, development
of managerial skills and increased insights regarding organizational work
environments thereby enhancing communication skills as the foundation of
professional correspondences and understanding the general structure of most
business situations by acquiring new information and ideas to apply them for the
benefits of the organization as well as the one’s own career development. It also
provides an opportunity to understand how the knowledge is acquired through the
formal classroom discussion sessions and is applied in the real working scenario.

The overall financial sector mainly comprises of two basic sectors, namely banking
sector and non- banking sector in Nepal. Banking sector of Nepal consist of Nepal
Rastra Bank (NRB), which is the central bank of the country and numerous
commercial banks. The non- banking sector consists of development banks, financial
consultancies, finance companies, co-operative organization as well as several Non-
Governmental Organization (NGOs) that render limited banking services.
Commercial banks are big business houses that carry out many operations daily.
Therefore, commercial banks have a large scope of study. At a time, when large
number of students are required to work as interns, commercial banks provide

large number of placements under different branches and departments. Few of the
banks have special provisions for interns with a predefined schedule allocated for
rotation around most of the departments during the internship period. This focuses on

1
generalization concept where the interns obtain a general overview about each of the
department, they get a chance to be in.

This internship report consists of knowledge and experience gained during the interval
of internship in Rastriya Banijya Bank Limited (RBBL), branch office (Koteshwor).
This report has been presented based on Eight weeks internship at Rastriya Banijya
Bank Ltd. Starting from 18th April to 26th June 2024. The main objective of the study
was to understand and analyze the activities of Rastriya Banijya Bank Ltd. The two-
month period of internship in RBBL was an invaluable opportunity to understand the
operation of the bank. This report therefore explains the overall working pattern of
Rastriya Banijya Bank Ltd.

1.2 Objective of the Study

The major objective of the internship program was to gain practical exposure to the
real-life working situation. Its aim was to accumulate learning as well as work
experience. The following are the objectives of the study:

• To understand the corporate culture of a commercial bank.


• To understand the operation flow of Customer Service Department at
Rastriya Banijya Bank.
• To explore professional experience as an intern and develop managerial and
interpersonal skills.
• To analyze the operating procedures of different departments in general.

1.3 Methodology

Intense research with a systematic approach and methodology is needed in any type
of study and in the preparation of a proper report with appropriate results. Similarly,
an internship is designed with a motive to provide a clear picture of the task performed
in a bank. This report has been prepared based on a two-month internship experience
in the customer service section of Rastriya Banijya Bank Ltd. (RBBL). Interaction
with staff and many customers as well as the practical involvement in the operation
of different departments and daily observation of work done provided the major
sources of primary data for the study. Apart from the major portion of facts collected
from the primary source, a few websites, previous internship reports, the bank’s
annual report, etc. have served as the other sources for the preparation of this report.

2
1.3.1 Organization Selection

An internship must be performed as a final semester credit course under which the
students are required to select an organization of any kind, as per the requirement of
BBA degree. Organization Selection structure directs how the necessary activities are
to be conducted in an organization to better achieve its goal. Rastriya Banijya Bank
Limited (RBBL) was selected as an organization for pursuing internship program as
it is one of the most renowned financial institutions in Nepal which has achieved
significant success. It has a good environment of learning and has perfect platform for
skill growth and development.

1.3.2 Placement

Rastriya Banijya Bank offered Internship for the period of two months at Koteshwor
Branch. During the internship period the intern was placed in the Customer Service
Department (CSD) under supervision. The supportive and friendly environment in the
organization helped the internee to complete the internship period through the proper
guidance of the staff of Customer Service Department. Throughout the internship
period, internee got an opportunity to deal with sort of banking issues prevailing in
customer service department.

1.3.3 Duration

The duration period for doing internship was eight weeks as defined by the Faculty of
Management, Tribhuvan University. Intern worked in RBB, Koteshwor Branch from
18th April to 26th June 2024. The working hours started from 10:00 am to 5:00 pm on
Sunday to Thursday and 10:00 am to 2:00 pm on Friday. During the period, the general
banking activities were learnt which helped to acquire more practical knowledge about
the general banking system.

Table 1
Duration of Internship

Department Weeks in Internship

1 st
2nd 3rd
4th
5th 6th 7th
8th

CSD

3
1.3.4 Nature and Sources of Data

In the preparation of this internship report both the primary and secondary data have
been used.
• Primary Sources of Data: Intern acquired the primary data through direct
interaction with the customers, staff, daily observations of the work done, files
of projects and customers with information.

• Secondary Sources of Data: The major sources of secondary data were the
publications of the Rastriya Banijya Bank such as journal and annual report
of Rastriya Banijya Bank, sites of RBB, old files and records and instruction
of various departments of RBB as well as various other websites.

1.3.5 Activities Performed

As Internee was placed in Customer Service Department, under the supervision of the
CSD in charge. For an organization, it is the main and most important department
which needs to deal with more customer. In doing this, the internee was able to gain
in depth knowledge regarding the functioning of various departments of the banks
that helped a lot in grooming the interpersonal skills with full confidence. Different
activities that were performed by the internee in the internship duration are as follows:

• Dealing with customer queries and grievances.


• Helping the customers filling in the forms.
• Balance checking and signature verification.
• Opening saving, corporate, social security, police, army and pension accounts.
• Issuing cheque books, ATM cards and account statements.
• Telephone handling and KYC updating.
• Other tasks like photocopy, scanning, filing, stamping, register maintaining of
account opening, account closing, ATM and mobile banking and cheque.

4
Table 2
Activities performed during intern period
S.N. Activities Weeks
performed
1st
2nd
3rd 4th 5th 6th 7 th
8th

1 Introduction of
CSD operations
2 Actual learning
activities
3 Collection of
data
4 Meeting
preliminary draft
of report

Table 2 shows that during the Intern period, it requires two weeks for intern to
understand the CSD environment and 5 weeks for its actual learning activities. For the
internship objectives, intern takes 3 weeks for data collection procedure. And for the
last 3 weeks, interns have been involved in meeting preliminary draft of report.

1.4 Limitation of the Study

All activities have their own boundaries and limitations. Similarly, this study has been
prepared based on observations and experience gained in the internship. The following
are the major limitation of the report:
• Due to lack of time, studying each activity of the bank in depth was not possible.
So, lack of time is the foremost limitation of this field report writing.
• The report is especially concerned with the Customer Service Department, so it
doesn’t present the whole activity of the organization.
• This report cannot be generalized to the company since the data is related only
to the Koteshwor branch of the bank.
• The report is limited to the information provided by the bank. The bank’s policy
on keeping some matters confidential lacked from analyzing different activities.
• Less guidance by the staff to the intern due to their own hectic schedule.

• Being a student, lack of technical knowledge was another factor which limits
the report.

5
1.5 Organization of the Study

This study has been organized into five chapters. They are as briefly explained below:

• Chapter one includes introduction, general background and methodology of the


study, duration of internship, activities performed and placement of the
internship.
• Chapter two deals with the introduction of the banking industry, history, and
role of commercial banks.
• Chapter three contains an overview of the organization (RBBL), vision,
mission and objectives, branches and its organization structure and services
provided by the bank.
• Chapter four gives the basic details of the departments, an explanation of the
operational activities of Rastriya Banijya Bank. It also includes the activities
done by the intern, and problems faced and solved by them.
• Chapter five describes the conclusion regarding the report, lesson learnt by the
intern during the internship.

6
CHAPTER II

INTRODUCTION OF THE INDUSTRY


2.1 Concept of the Bank

The word “Bank” has been arrived from Italian word “Banco”, a bench- the Jews in
Lombardy having benches in the marketplace for the exchange of money and services
(Sangale, Salve & Patne). In French language it is called “Banke” and in English
language “Banco” means “Bench”. The evolution of the banking industry started a long
time back during an ancient period. There was a reference to the activities of money
changers in the temple of Jerusalem in the New Testament. The development of
banking in the ancient Rome roughly followed the Greek pattern. A bank is a financial
institution licensed to receive deposits and make loans Banks may also provide
financial services. Lending activities can be performed either directly or indirectly
through capital markets. Due to their importance in the financial stability of the country,
banks are highly regulated in most countries.

Banking concept existed even in the ancient time when the goldsmith and rich people
used to issue receipt against the promise of safe keeping of their valuable items and on
the presentation of receipt, the depositors would get back their gold and valuable after
paying a small amount of safe keeping and saving. A bank is an institution engaged in
monetary transactions. It receives deposits of money from those who have been saving
and lending to those who need money for some purpose, paying and charging interest
at some fixed rate per annum. Besides this, a bank is also involved in agency services,
for example remitting and collecting cash on behalf of its clients, opening bank draft
and underwriting shares and so on. A bank helps in every sector of the economy such
as trade, industry, agriculture and so on. Today’s performance of bank signifies how
important it is for business and economic development of a country. Banking is the
business of collecting and safeguarding money as deposits and lending of the same.
Bank is therefore known as a dealer of money that bridges a gap between the savers of
fund and users of the fund.

According to Commercial Bank Act 2031 B.S, ‘A Commercial Bank refers to such type
of bank which operates currency exchange transaction, accepts deposits, advances,
loans, performs dealing relating to commerce except the banks which has been
specified for the cooperative, agriculture, industry of the similar other objectives.’

7
Banks provide almost all payment services, and a bank account is considered
indispensable by most businesses, individuals and governments. The term bank is
normally understood as an institution that holds a banking license. Banking licenses are
granted by bank regulatory authorities and provide right to conduct the most
fundamental banking service such as accepting saving and deposits and extending
loans, transferring of the money. Thus, a bank is an institution that deals in money and
its substitutes and provides other financial services. Banks accept deposits and make
loans and derives a profit from the difference in the interest rates paid and charged
respectively. It safeguards money and provide loans, credit and payment services.

2.2 History of Banking Industry

Banking began with the first prototype banks of merchants of the ancient world, which
made grain loans to the farmers and traders who carried goods between cities and this
system is known as barter system. This began around 2000 B.C. in Assyria and
Babylonia. Later in ancient Greece and during the Roman Empire, lenders based in
temples made loans and added two important innovations: they accepted deposits and
changed money.

In the Babylon, at the time of Hammurabi, in the 18th century B.C. there are records of
loans made by the priests of the temple. The concept of banking has arrived. When the
word bank is used it is meant for commercial bank. Before 1960 there was no such word
as ‘banking’. However, in the temple Babylon the practices of safeguarding and saving
flourished as early as 2000 B.C. Chanakya in his Arthashastra written in about 300 B.C.
mentioning about the existence of powerful guilds of merchant’s bankers received
deposits, advance loans and hundis. Merchants and goldsmiths were ancestors of bank.

The ‘Bank of Venice’, established in 1157 A.D., is supposed to be the ancient bank.
Originally, it was not a bank in the real sense, simply being on office for the transfer of
the public debt. Venice, after being possibly the first city to find a bank for keeping
money on safe deposits and the clearing of the cheque, is also a pioneer in the
involvement of a bank with state financiers. In 1617 the Banco Giro was established to
solve problems encountered by the earlier, which has got into trouble through the
making of unsecured loans. Subsequently, Bank of Barcelona ‘1401’ and Bank of
Geneva ‘1407’ were established.

8
During the 18th century the Bank of England gradually undertakes many of the tasks
now associated with the central bank, the ‘Bank of England’ was established in 1964
A.D. The Bank of England was the first to begin permanent issue of banknotes, in 1965.

Banking during Roman times was not as we understand banking in modern times.
During this period most banking activities were conducted by private individuals, and
not by large banking corporations that exist today. Money lending was not only allowed
for those people who needed money to have access to it, but that through direct
transference between bankers, the actual usage of the currency was not needed because
it could be done purely through financial intermediation. The 19th century comes with
the vast scope of development in commercial banks. The 20th century observed the
development of various banking institutions highly specialized particularly in advanced
countries like the USA, UK and others. Banks play a vital role in the financial market
to increase the volume of finance and to business houses and public.

2.3 History of Banking in Nepal

Banking service is the oldest service industry in Nepal. It has gone through various
stages of evolution and development since the Vedic times (2000 to 1400 B.C.). The
origin of the banking system in Nepal started with the name of Shankerdhar, a Sudra
merchant of Kantipur who paid all the outstanding debts in the country. In historical
term, there is a story that Gunkam Dev borrowed money in 723 Sambat to reconstruct
Kathmandu (Bhetuwal, 2007).

In the 11th century, during the Malla regime, there was evidence of professional money
lenders and bankers. During that period, Tankadhari which is money lender provided
debt. ‘Tejarath Adda’ was established in 1877A.D. during the tenure of Ranadip Singh,
and it was converted into a government financial institution providing credit facilities
to people at low interest rate of 5 percent. Tejarath Adda distributed credit facilities to
the public especially on the collateral of gold and silver, but it didn’t collect the deposit
from the public (Investopaper, 2021).

After a long period, the government started to trade with India and Tibet. And the
various indigenous bankers handled even the trade business the transfer of the money
could be safely made only through these bankers. This was strongly supported by the
situation caused during the 1934 A.D. earthquake where there was the need for finance

9
for the reconstruction of works. Reviewing these situations, Industrial Development
Board was constituted in 1936 AD. A year after its formation, the ‘company act’ was
formulated by Industrial Development Board and the ‘Nepal Bank Act’ which
established Nepal Bank Ltd. with the technical cooperation of the Imperial Bank of
India, as first commercial bank of Nepal.

Nepal bank Ltd. is the first modern bank of Nepal. It is taken as the milestone of modern
banking of the country. Nepal bank marks the beginning of a new era in the history of
the modern banking in Nepal. This was established in 1937 A.D. Nepal Bank has been
inaugurated by King Tribhuvan Bir Bikram Shah Dev on 30th Kartik 1994 B.S. Nepal
bank was established as a semi government bank with the authorized capital of Rs.10
million and the paid -up capital of Rs. 892 thousand. Until the mid-1940s, only metallic
coins were used as medium of exchange. So, the Nepal Government (His Majesty
Government on that time) felt the need of separate institution or body to issue national
currencies and promote financial organization in the country.

Nepal Bank Ltd. remained the only financial institution of the country until the
foundation of Nepal Rastra Bank is 1956 A.D. Due to the absence of the central bank,
Nepal Bank must play the role of central bank and operate the function of central bank.
Hence, the Nepal Rastra Bank Act 1955 was formulated, which was approved by Nepal
Government accordingly, the Nepal Rastra Bank was established in 1956 A.D. as the
central bank of Nepal. Nepal Rastra Bank makes various guidelines for the banking
sector of the country (Gurung, 2014).

A sound banking system is important for smooth development of banking system. It


can play a key role in the economy. It gathers savings from all over the country and
provides liquidity for industry and trade. In 1957 A.D. Industrial Development Bank
was established to promote the industrialization in Nepal, which was later converted
into Nepal Industrial Development Corporation (NIDC) in 1959 A.D.

Rastriya Banijya Bank was established in 1966 A.D. as the second commercial bank of
Nepal. As the agriculture is the basic occupation of major Nepalese, the development
of this sector plays in the prime role in the economy. So, a separate Agricultural
Development Bank was established in 1968 A.D. This is the first institution in
agricultural financing.

10
For more than two decades, no more banks have been established in the country. After
declaring free economy and privatization policy, the government of Nepal encouraged
the foreign banks for joint venture in Nepal. Today, the banking sector is more
liberalized and modernized and systematically managed. There are various types of
banks working in modern banking system in Nepal. It includes central, development,
commercial, financial, co-operative and Micro Credit (Grameen) banks. Technology is
changing day by day. And changed technology affects the traditional method of the
service of bank.

Classification of Financial Sector in Nepal


Table 3
Classification of Financial Sector in Nepal

Name of bank No. of banks

Central Bank 1
Commercial Bank (Class A) 20
Development Bank (Class B) 17
Finance (Class C) 17
Micro Finance (Class D) 52
Infrastructure Development Bank 1

Source: www.investopaper.com
In this way, there are all together 20 commercial banks, 17 development banks, 17
financial companies and 52 micro-finance companies in Nepal which are classified as
A, B, C and D respectively.

2.4 Present Scenario of Banking Industry in Nepal

In the context of the present situation there is tough competition for the banking
industry. The overall competitions have been increased over the gap of time. As, we
know the economy of Nepal is very small but number of service provider high. Due to
this reason many banking industries are facing lots of problems. Some are in the
position of insolvent and some are in the process of merger. Political instability is
creating lots of problems in their operation. A few banks are making their presence in
the market by providing security and confidence to customers. The banking industry is
11
failing to achieve its respected target. The NRB has classified the financial institutions
into “A” “B” “C” “D” categories based on the minimum paid-up capital and provide
the suitable license to the bank or financial institution. Class “A” is for Commercial
Bank. “B” is for Development Bank, “C” is for the Finance Companies and “D” is for
the Micro Finance Companies. There are 21 commercial banks, 17 development banks,
17 finance companies, and 64 micro finance companies. These days, modernized
banking services such as the banking software, ATM, E-banking, Mobile Banking,
Debit Card, Credit Card, Prepaid Card etc. are available in the banking system in Nepal.

Currently the banking sector is evolving to be very competitive and challenging. The
fastest growing and emerging industrial sector today is no other than banking. It is
flourishing and upgrading day by day. Banks are using various new technological
advancements to provide timely, fastest and economical services to the customers.
Banks, with the collaboration of other financial institutions, IT’s and other
organizations, always try to attract customers. The different ages of the banking sector
clarify the improving current scenario of banking. There is an ongoing trend of mergers
by the banks which are suffering from the problem of a low capital base and limited
geographical coverage. Then numbers of financial institutions are decreasing though
becoming powerful. It can be summarized as in the following bullets:

➢ The central bank has directed the banks and other financial institutions to
provide home loans for reconstruction of houses with different conditions and
facilities in favor of earthquake victims. It has also proposed different
conditions and facilities in favor of existing credit holders who are also the
victims without hampering the profitability of banking and financial
institutions.
➢ Nepal Financial Intelligence Unit (FIU) gained the membership of international
institution Egmont Group of Financial Intelligence Units. The membership
would help to exchange financial intelligence between Nepalese and other
international financial institutions in a secure way using Egmont Secure Web.
➢ A wave of Initial Public Offerings (IPOs) has started among the new BFIs, but
very few of them have opted for this route.
➢ The net profit of banking and financial institutions in aggregate also shows an
increasing trend.

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➢ The commercial banks are reducing the interest rate lower than the inflation
rate. The unhealthy competition and low investment against the flows of deposit
have compelled the banks to cut the interest rate.

2.5 Commercial Bank

A commercial bank is the major financial institution that provides services such as
accepting deposits, providing business loans, and offering basic investment products.
Commercial bank can also refer to a bank, or a division of a large bank, which more
specifically deals with deposit and loan services provided to corporations or
large/middle-sized business as opposed to individual members of the public/small
business.

The Commercial Bank Act 2031, section 2(a), defined commercial bank as financial
institution that operates currency exchange, money transactions, accepts deposit,
advances loan and performs other commercial transactions which are not specially
established with the objectives of cooperative, agricultural, industry or any other such
kind of specified purpose.

The major functions of Commercial Bank are as follows:


• Exchange of notes.

• Remittance and collection of funds.

• Safe-keeping services and locker facilities.

• Insurance of letter of credit and guarantees

• Merchant banking business.

• Acceptance of deposits and granting of advances.

• Technology based service and credit cards.

• To issue travelers cheque.

• To accept tax proceeds and tax returns.

2.5.1 Roles of Commercial Bank

The functions of commercial banks can be classified into three categories. They are:

13
➢ Primary functions
• To accept various types of deposits like saving account deposit, current
account deposit and fixed deposit.
• To provide loans and advances in different forms like cash credit, money
at call, overdraft, discounting bills of exchange, terms loan, etc.
➢ Agency Function
• To collect and clear cheques, dividends and interest warrant.
• To make payments of rent, insurance premium, etc.
• To deal with foreign exchange transactions.
• To purchase and sell securities.
• To act as trustee, attorney, correspondent and executor.
• To accept tax proceeds and tax returns.
➢ General Utility Functions
• To provide safety locker facility to customers.
• To provide money transfer facility.
• To issue travelers cheque.
• To accept various bills for payments like phone bills, water bills, etc.
• To provide merchant banking facility.
• To provide credit cards, debit cards, smart cards, etc.

2.5.2 Challenges and Opportunities Faced by Commercial Banks

The opportunities faced by commercial banks includes the following:

➢ Emerging Nation: Nepal is a developing nation and there are various projects
undertaken to develop an economy. Hence banks loan is the major source of
investment.
➢ Merger: Due to the tough competition banks need to strengthen and increase
their capital to compete. Hence mergers strengthen the banks and brings out
economies in scale. It leads to synergy effect and helps in cost saving.
➢ Transfer of money: Bank transfers money from one place to another place by
using different means of payment that are telegraphic transfer, mail transfer,
bills of exchange, bank draft, letter of credit, promissory note, etc.

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➢ Technology: Almost all banks have e-banking and mobile banking facilities.
Bank’s customers have easy access to their bank account and its services. Most
banks have their own mobile apps for security concerns. Customers are notified
regarding changes to their account.
The challenges faced by commercial banks are as follows:

➢ Not making enough money: Despite all the headlines about banking
profitability, banks and financial institutions still are not making enough return
on investment, or the return on equity, that shareholders require.
➢ Consumer expectations: These days it’s all about the customer experience, and
many banks are feeling pressure because they are not delivering the level of
service that consumers are demanding, especially regarding technology.
➢ Increasing competition from financial technology companies: Financial
technology companies are usually start-up companies based on using software
to provide financial services. This creates a big challenge for traditional banks
because they are not able to adjust quickly to the changes not just in technology,
but also in operations, culture, and other facets of the industry.
➢ Regulatory pressure: Regulatory requirements continue to increase, and banks
need to spend a large part of their discretionary budget on being compliant, and
on building systems and processes to keep up with the escalating requirements.

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CHAPTER III

INTRODUCTION OF THE ORGANIZATION


3.1 Introduction to Rastriya Banijya Bank

Rastriya Banijya Bank Limited (RBBL) has a history of serving its customers far and
wide across the nation for more than half a century. Rastriya Banijya Bank Ltd. (RBB)
was established on January 23, 1966 (2022, Magh 10). It is one of the pioneer banks in
the country with the history of nearly a half century. Earlier constituted under RBB act
2021 with the full ownership of the government of Nepal. The Bank has been running
under Bank and Financial Institute Act (BAFIA) and Company Act (CA) 2063 at
present. The Bank licensed by NRB as an 'A' class commercial Bank of the country,
has grown up as an indispensable component of the Nepalese economy. RBB was
inaugurated by late king His majesty Mahendra Bir Bikram Shah Dev.

RBBL. started its banking operation through 7 branches covering 7 districts and 7
zones. With its head office located at Singha durbar, Kathmandu, with its line your own
bank, RBB is one of the market leaders and the largest banking sector of Nepal. The
bank licensed by NRB as ‘A’ class commercial bank of the country, has grown up as
an indispensable component of the Nepalese economy. The bank has currently entered
56 years of service that has carried out Note Kosh Fund, Bharu Kosh Fund, NRB’S
draft transaction, Government transaction, Provision Fund of Nepal Government.

RBB provides various banking services to a wide range of customers they include elite
to poor individuals, institutional customers, and the customers from industry or
business communities. RBB has been contributing to socio economic development of
the country for the last four and half decades. The bank with 2600 hands has expanded
its wings in most parts of the country through multiple distribution outlets of 238
branches, 93 Branch Less Banking (BLB) and 204 ATMs. Through its widest branch
and ABBS network RBB has been catering modern banking services to millions of
customers. RBB has many correspondent arrangements with major international banks
all over the world that facilitate trade finance, bank-originated personal funds transfer
and interbank funds transfer. To promote remittance business, RBB works with CG
money remit, Prabhu Money Transfer, Express Money Services Limited, Instant Cash
Global Money Transfer, Western Union and International Money Express.

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The bank had made glorious history of contributing for the monetization of the
economy, eliminating dual currency in the market, initiating preliminary financial
literacy, help in flourishing industrial, commercial and financial sector of the country
has emerged now as a modern and strong financial institution of the country. The bank
with as many as 17 million satisfied direct customer ranging from poor to elite ones
and millions of indirect ones has drawn important imprint in the picture of country’s
economy through its significant involvement in the best use of its resources to enhance
the production, income and employment opportunities. The bank is also in the frontline
towards fulfilling corporate social responsibility. The bank has been working as a
development partner by acting as a fund administrator of Poverty Alleviation Fund
(PAF). The bank has made significant contributions in the development of private
sector either by loan disbursement or by active participation in the fairs organized by
industrial and business communities.

3.2 Core Philosophy of RBB

The core philosophy of RBB includes its mission and vision. Mission is the
organization’s reason for its existence. Vision represents where the organization wants
to be in the future and objectives are short term operating goals.

3.2.1 Vision

The vision of RBB is “To provide innovative banking services to everyone, every time
and everywhere for the economic development of the nation." Some of its corporate
visions are:

➢ To provide excellent professional services &improve its position as a leader in


the field of financial related services.

➢ To build & maintain a team of motivated and committed workforce with high
work ethos.

➢ To use the technology aimed at customer satisfaction and act as an effective


catalyst for socio-economic development.

3.2.2 Mission

The mission of RBB is “To provide easy and innovative banking products and services
for our customers by implementing a one stop service concept from our wide network

17
using our modern technology qualified human resources in competitive environment.
We always look for the benefit of the local communities supporting entrepreneurship,
social responsibility and economic prosperity of the nation." Also focuses on enhancing
the quality of life of all Nepalese by removing barriers to financial access and help them
to achieve their full potential; ensure safe, innovative and affordable financial services
through vast networks of efficient centers, socially responsible business processes and
empathetic human resource.

3.3 Strategic Objectives of RBB

The main objective of RBB is to provide banking services to the people in general of
the country there by enhancing their economic interest and facility as well and
contributing to the socio- economic development of the country.

The objectives of RBB are as follows:

• To enhance operational efficiency.


• To grow business and increase market share.
• To focus on providing innovative financial services.
• To increase the capital base by meeting the minimum capital requirement.
• To increase sustainable profits and meet objective.
• To facilitate lending to productive sectors.
• To focus on empowerment of deprived class.

3.4 Organizational Structure and Design

An organizational structure is a formal, guided process for integrating the people,


information and technology of the bank. It consists of activities, such as task allocation,
coordination and supervision which are directed towards the achievement of the bank’s
aims. The head office of the bank is located at Singhadurbar Plaza, Kathmandu. The
Board of Directors is responsible for policy making & guidance to the management.
The government nominates all board members including the Chairman. The executive
power is vested in the Chief Executive Officer (CEO). The Bank has 23 departments in
its head office and 7 provincial offices across the 7 states of the country.

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Figure 1
Organizational Structure
3.4.1 Branch Offices

RBB has expanded its branches all over Nepal in different geographical locations. They
are as follows:

Table 4
Branch Network

Province Branches
Province 1 63
Province 2 36
Province 3 75
Province 4 33
Province 5 41
Province 6 26
Province 7 25
Source: www.rbb.com.np

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3.4.2 Board of Directors
The Board of Directors is responsible for policy making and guidance to the
management. The government nominates all board members including the chairman.
The table below shows the members of RBBL’S board members.

Table 5
Board of Directors RBBL

Board of Directors Designation


1 Mr. Dilip Kumar Dhungana Chairman
2 Mr. Narayan Prasad Rimal Director
3 Mr. Anal Raj Bhattarai Director
4 Prof. Dr. Ram Prasad Gyawali Director
5 Mr. Sushil Ghimire, FCA Director
6 Mr. Laxman Ghimire Independent Director
7 Mr. Devendra Raman Khanal CEO
Source: www.rbb.com.np
3.5 Technology Used
RBBL has installed PUMORI Plus-IV and Trust AML as banking software throughout
the branches to carry out all the banking activities. PUMORI Plus is an on-line multi-
user; multi-currency integrated banking system of international standard developed by
Mercantile Office Systems, Nepal. It integrates all functions of front office and back
office as one package. The system runs on Windows NT network and provides
adequate security features for keeping smooth operation of the system. Trust AML is
a complete AML solution for automated KYC management, risk assessment, data
screening, monitoring & generating other reports.

3.6 RBB’s Major Departments


The major departments of RBB are as follows:

3.6.1 Customer Service Department


The Customer Service Department is a primary level department that generally deals
with customers directly and regularly. This department is basically directed towards
providing surface level assistance to the customers i.e. to provide general information
about banking system, product and services provided by the bank. The department is
responsible for providing the basic materials like deposit vouchers, cheque book, bank

20
statement, balance certificate and so on. Since the customer service department directly
interacts with the customer, employee’s good behavior and attention towards customer
is vital. How the staffs over CSD deals with customer determines how effective the
bank is in attracting new customers.

3.6.2 2 Loan and Credit Department

One of the principle economic functions of the bank is to make loans to their customer.
How well a bank performs depends upon the position of loans provided by the bank.
The credit department is concerned with providing loans to individuals and institutions.
The main function of managers in credit department is to make thorough and critical
analysis of the applications forwarded by the customers and to grant loans of the various
natures. RBB provides various loans such as housing loan, education loan, teacher’s
loan, vehicle loan, apartment loan, loan against gold, personal loan, agricultural loan
and so on.

3.6.3 Cash and Deposit Department

The important section of any bank is the cash department. This department is
responsible for managing the cash that comes into the bank. This is a department which
is involved with the cash payment and deposit it holds certain amount vault. This
department pays cash to the customers as well as receiving their deposits.

3.7 RBB’S Major Commercial Banking Products and Services

RBB is never back in providing the best products and services to meet the requirements
of its customers, that the existing ones or potential customers. RBB is indeed successful
in providing these entire products through the analysis of the customer feedback form.
The recognition from the market of the new name and management is encouragement
for RBB to enhance their service to the customers. Customer Satisfaction is the
paramount driver at RBB. The major commercial banking products and services of
RBB include:

3.7.1 Deposit facility

Accepting Deposit is the primary function of every commercial bank. Deposits are the
kind of products or services that the bank provides to the customers. In fact, it is the
money kept by the customers in the bank with some interest to be received in near

21
future. The deposit also plays a role of guard by safeguarding the customer’s money
and providing them in time of money as per the rules and regulations of the bank.

Saving Deposit: RBB saving account is a deposit account held at a bank maintained
by a customer for the purpose of accumulating funds over a period while earning an
interest. Saving deposit account at RBB is designed with array of features which not
only ensures attractive returns to idle money but also makes personal banking
convenient and efficient. It is basically focused towards encouraging small savings.
The saving accounts provided by the bank are:

• Normal saving account


• Student Super saving account
• Karmayogi saving account
• Mahalaxmi saving account
• Chunamuna saving account
• RBB special saving account
• RBB sunaulo saving account
• Teachers bachatkhata
• Police saving account
• Army salary saving
Features:

• Attractive interest rates


• Affordable balance
• Unlimited withdrawals deposits
• Extended banking hours in Kathmandu valley branches
• Free cheque books
Documentation:
• Completed account opening form.
• Power of attorney (if the account operator is other than the account holder/
applicant)
• Minimum balance of Rs. 1000
• Evidence of identification of account operator (Citizenship, passport, driving
license/ Voter’s Id, National Id)
• Recent passport size photographs of applicant/ account operator
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Current Deposit: Every business has banking needs and RBB rightly meets the need
in today’s fast paced business. For withdrawal and RBB offers a wide range of products
and services designed to make banking easier and to match every customer's
requirement. The networked branches of RBB give the power to transfer funds in and
across cities (where Rastriya Banijya Bank has its offices branches) in a flash.

Features:

• Withdrawal below minimum balance


• Extended banking hours in Kathmandu valley branches
• Standing Instruction
• Cash Management
• Free cheque book

Documentation:

• Completed account opening form


• Minimum balance of Rs. 3000
• Board resolution to open and operate the account
• Certificate of registration incorporation
• Article of Association
• Memorandum of Association
• Evidence of identification of account operator (Citizenship, Passport, Driving
License/ Voter’s Id)
• Recent passport size photographs of account operators

Proprietorship/ Partnership Firm

• Completed account opening form


• Certificate of registration/ incorporation
• Income tax certificate (PAN Card)
• Partnership deed (In case of partnership firm)
• Evidence of identification of account operator (Citizenship, Passport, Driving
License/ Voter’s Id)
• Recent passport size photographs of account operators

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Fixed Deposit: RBB has introduced several innovative schemes under Fixed Deposit
designed to cater to the needs of various segments of customers to meet your specific
requirement. RBB’s fixed deposit account ensures safe custody of customers fund
along with attractive interest rates. Fixed deposits are the deposits with tenure ranging
from three months to five years. Fixed call deposit at RBB allows diversifying
customer’s portfolio to best suit their investment plans. Some of the products of RBB’s
fixed deposit account are as follows:

• Normal fixed deposit


• RBB special fixed deposit
• RBB corporate fixed deposit
• Corporate bulk deposit
• Diamond fixed deposit
Features:

• Attractive interest rate


• Wide options of tenure
• Convenient account opening
• Loan facility up to 90% of deposit amount
• Auto renewable possible

Documentation:

• Completed account opening form


• Evidence of identification of account operator (Citizenship, passport, driving
license/ Voter’s Id)
• Power of attorney (if the account operator is other than the account holder/
applicant)
• Recent passport size photographs of account operators

Call deposit: A call deposit is of fixed deposit nature however it is the hybrid of saving
and current account. Call deposit accounts are those accounts where customers park
high-volume short-term deposits. These accounts pay interest to account holders based
on the rate negotiated with the bank. Attractive interest rates with additionally facility
of that of fixed deposit account. Different types of call deposit accounts are:

24
a. Normal call deposit
b. Institutional or corporate call deposit
c. RBB special call deposit
3.7.2 Loan and Advances
RBB provides various types of Loans and Advances designed to suit the varied
requirements of Industrialist, Business Houses, Professionals, Entrepreneurs and
Individuals. RBB provides loans to various customers to help them finance their short
term, medium term as well as long term financial needs. The bank provides a full range
of solutions including short to medium term commercial lending, structured finance
and transaction banking to meet banking requirements of customer. RBB provide
different loan, and these loans are given below:

• Business loan: The business loan provides finance to support or expand a


customer’s existing business and to start up their new business. The business
loan provided by RBB are term loan, overdraft, project loan, funded loan, etc.
• Housing loan: Providing a home loan is a long-term financial commitment.
RBB home loan is a simple way to use the savings smartly by deciding how
much interest to pay. Structure your equated monthly investments over a period
of 5-15 years as per the repayment capacity. The bank provides the housing loan
facilities for the construction of houses for both residential and commercial
purposes and for the repair, extension, renovation of existing buildings.
• Vehicle loan: The bank provides vehicle loan facilities for the purpose of new
vehicles for both commercial and residential purposes. It also provides finance
for purchases of used vehicles for both commercial and residential purpose.
• Educational loan: Education is the most important investment one makes in
life. Higher studies and specialization in certain fields call for additional
financial support from time to time. Whether pursuing a graduate or post
graduate degree, the RBB education loans can help finance in achieving the
ambitions and goals.
• Loan against gold: This product is designed to meet the financial needs during
festivals, marriages, personal contingencies and other social commitments.
Loans against gold, silver just meet that requirement by offering fast credit for
up to one year.

25
• Agriculture loan: RBB, announces the restarting of agriculture lending to its
clients considering the due importance of developing agriculture sector as it is
a predominant contributor of Nepalese economy providing employment to 66%
of active population and contributing 38% in GDP.
• Personal loan: The bank provides both revolving (OD) and fixed tenure long
term loan (term loan) to fulfill the various personal needs of the customers. The
nature of the personal loan depends upon the requirement of the customers.
• Teacher’s loan: This is the special product of RBB tailored to meet the banking
needs of the permanent teachers working on the government schools and
universities. The loan is advanced up to Rs. 5lakhs or 70% of 5 years gross
salary (whichever is less).

3.7.3 ATM facility

RBB debit card is a plastic card which provides an alternative payment method to cash
when making purchases or cash withdrawal from ATM centers. The branch provides
the ATM facility to its account holder. Visa debit cards with PIN (personal
identification number) are issued to customers to enable 24-hour ATM facility. The
basic functions of RBB ATM are cash withdrawal, fast cash, enquiry (balance and
statement enquiry). RBB debit card holder can also have the withdrawal facility from
over 5000 ATM in India.

3.7.4 Mobile Banking Services

Mobile banking services is another facility provided by the branch to its customer.
Rastriya Banijya Mobile Banking provides convenient mechanism and quick access to
banking services for Rastriya Banijya Bank customers from their mobile devices. Under
this arrangement, customers can know the balance of their account through SMS
without human assistance. RBB is in the process to strengthen the facility towards
cheque book requisition, statement request and standing institution.

3.7.5 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 IBanking for Corporate customers.

26
3.7.6 Any Branch Banking Service (ABBS)

RBB has been providing any branch banking service to all the branches across the
country to help the customers get the amount from anywhere and any place within
Nepal. In this kind of facility, the sender can send the money from any branches within
Nepal and the receiver can receive the money from anywhere within loan.

27
CHAPTER IV

ANALYSIS OF ACTIVITIES DONE AND PROBLEM SOLVED


4.1 Introduction

During the eight weeks period of internship in RBB Ltd, the internee was assigned to
the Customer Service Department which helped internee to gain a lot of knowledge
about that department. The main objective of the internship program was to learn the
work that takes place every day in the banking sector. The bank has different
departments and the works to be carried out in these departments also vary in nature.
Though the work is varied in these different departments, these departments are linked
to each other in some way or other.

4.2 Customer Service Department (CSD)

Customer service is a very important aspect in a business because it focuses more on


the ideas of customer feedback and outputs as they are exposed with your product or
services. Customer service is an essential part of the business team and in fact, some
businesses do have their own customer service department which aims to aid customers
on their concerns, queries, suggestions and complaints. Customers are the centre of the
business that is why one department should be established so to enable to hear their
voice and improve the sales, quality of service and delivery of efficient customer
service whether you are selling a product or a service.

The Customer Service Department is the heart of the bank which links the customer
with the bank. This is the place where the customers can put their queries related to
bank and its services. Customer Service Department mainly focuses on helping with
the day-to-day operations of the bank. This department provides the information and
technical support to the internal customers as well as to the external customers too.
Customer service acts as bridge between the customer and the company that the
customers are buying or getting a service from. Customer service is a series of activities
designed to enhance the level of customer satisfaction that is, the feeling that a product
or service has met the customer expectation. Good customer service helps in retaining
loyal customers and reaping long-term profitability to organization.

The basic functions of this department are:

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➢ Customer counselling

➢ Account operations

➢ Distribution activities

4.2.1 Activities Performed in Customer Service Department

• Account Opening: Account opening is important for the customers if they want
to do the transaction from the respective bank. It is one of the most frequent
activities done in CSD. During the time of opening the account, customers are
also asked whether they need other services provided by the bank like the ATM
card service, internet banking service, SMS banking service and so on. And if
the customer is interested to get those services, then the customers are asked to
fill up the respective forms to get those services. Account may be opened by
individuals, sole proprietorship firm as well as the partnership firms. For
opening personal account intern asked customers to fill the specimen card,
provide original citizenship card as well as photocopy of it, and three passport
size photos.
• Account Closing: During account closing, intern helped customer to fill
account closing form and submitted to CSD along with their unused cheque
books and debit cards. The account closing form includes account number,
account holders name and reason for closing the account to be filled and
submitted to the department. The documents are then transferred to concerned
department and authority and the account and then account was closed.
• Issuing Bank Statement: Customers in a bank want the bank statement to
know their financial transactions during the period of a year or more. Bank
statement clarifies the customers regarding the transactions they did in the past
years. The bank statement will be provided as per the requirement of the
customer. The customer having an individual account needs to be present for
on demand bank statement, whereas in case of organization or joint account the
account holder can write a letter to bank for providing bank statement to the
person. he individual account holder or the organization’s bank statement which
has been taken is recorded in the register for future purposes.

29
• Updating old account through KYC (Know Your Customer): The bank has
many old customers who have opened the account when there was no
technology available. The old form did not have the photo due to which the
customers were not recognized in the bank. To solve this problem the concept
of filling up KYC form came into existence. The customers who have opened
the account long way back are required to fill up this form where they are
required to fill up all their details along with attaching their recent photographs
in the form.
• Verifying account number and checking balance: The customer in the bank
can get confused regarding their account number. In that case CSD is
responsible to assist the customer with providing accurate account number.
Likewise, the customer also wants to be clear regarding the amount they have
in their account. In that case CSD must provide the information regarding the
amount the customer have in their accounts.
• Distributing cheque: The cheque is also to be distributed to the concerned
person by CSD. The person themselves must be present to receive the cheque.
If the cheques have been finished, in that case the customer is required to fill up
the white slip which is attached to their old cheque book and give it to the CSD
to verify the signature. After the signature is verified, the customer’s cheques
are printed, and cheque details are written in manual file and customers should
sign into that file. Then, internee provides them the cheque after verifying the
signature. After that, the cheque number is entered in the computer and all
cheques are made valid. In case of lost cheque, the customer needs to write an
application to the bank for providing them with new cheque book and the
customer is charged.
• Assisting customers in filling cheques, vouchers, forms: The new customer
in the bank gets confused regarding filling up the form, vouchers and so on.
Internee assisted many customers in filling up the different forms like account
opening, account closing, SMS banking form, ATM form and other forms. The
old customers really find difficult to fill up the cheque to withdraw the amount.
Internee helped many of these customers in filling up their cheques as well.
Likewise, the customer also gets confused regarding which voucher is to be

30
filled up to deposit amount. The color of voucher differs as per the branch the
customer belongs to.

4.2.2 Problems Identified in Customer Service Department

• Difficulty in dealing with customers: Some of the customers are difficult to


deal with. Especially the old, aged customers, they don’t want to listen to the
employee. They want to carry out the tasks of bank as per their wish. They don’t
want to follow the rules and if they are asked to follow it, they show their rude
behavior towards the bank. Not all the senior people do this, only some of them
are difficult to deal with.
• Issues related to miscommunication: The customers in the bank come for
different purposes. Sometimes the other customers of the bank can
miscommunicate the information regarding the location of different department
in the bank. Internee assisted the customer by providing them with the correct
information regarding the location of concerned department
• Issues related to loss of cheque books: The customers come with the problem
that they have lost their cheque book. In that case, as per the rule of the bank
internee asked them to write an application to the bank regarding the issuance
of new cheque book. Once the application is filled, the signature of the customer
is verified, and their cheque book is made.

4.3 Electronic Cheque Clearing Department

Electronic Cheque Clearing (ECC) is the inter-bank cheque clearing solution which
replaces the manual cheque clearing system. ECC has made the cheque clearing process
easy. It relies on transferring the electronic data and captured cheque images rather than
moving the physical cheque. The transferred cheque is exchanged through a daily
clearing session that has a specific identification number, currency, urgency and
settlement date. It is an image based, cheque clearing and settlement solution where the
original paper cheques are scanned, and the scanned cheque are then presented to the
communication channel from the member in which they are deposited to the member
on which they are drawn. Due to this system, the cheque clearing process has become
more significant, faster and easier. This has also reduced the transportation cost and
increased cheque trust which was the major demerit of manual cheque clearing. ECC
is an initiative of Nepal Rastra Bank (NRB) to modernize the banking sector and the

31
payment systems in Nepal. The central system of the clearing mechanism lies at Nepal
Clearing House Limited (NCHL). The NCHL and ECC as per the operating rules
prescribed by NRB. This department requires very clear documents otherwise NRB can
return the cheque several times. Major activities performed:

• Physical examination of the cheque.


• Cheque presentment stamping.
• Scanning the cheque.
• Data entry for captured cheque.
• Deposit slip printing.
• Quality assurance and repair (if necessary) for cheque.
• Transmission and presentment of cheque.
• Reply reception and processing.

4.3.1 Process of Electronic Cheque Clearing

In ECC, cheques are not physically carried to NRB, all the cheques are scanned, and
every necessary information are checked and confirmed and then only send to the
communication channel, from the member in which they are deposited to the member
on which they are drawn.

Regular Clearing Sessions

Any presented cheque under a regular clearing session should be replied before the end
of the regular clearing session (before the reply to cut-off time), otherwise it is auto
accepted. The regular clearing session has the following settings for a particular
business day.

• Starts from the previous business day at 1:00 pm.


• First cut-off time (End of presentment) takes place at 12:00 pm on the current
business day.
• Cheque presented after that time is assigned automatically to the clearing
session the next business day.
• Second cut-off time (End of reply) take place at 3:00 pm on the current business
day.

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Express Clearing Sessions

The express clearing sessions should be started and completed before the end of the
first cut-off time of the regular clearing session. Any presented cheque under express
clearing must be replied within 30 minutes, otherwise it will be auto rejected by the
system with a ‘time out’ reason.

Friday Session

On Friday there is no regular clearing session. Only express clearing session is


undertaken

• Starts at 10:00 am
• First cut-off time (End of presentment) is at 12:00 pm.
• Second cut-off time (End of reply) is at 1:00 pm.

4.3.2 Problems Identified in Clearing Department

• Problems related with making call to the customer.


• Problems related with scanning of cheques
• Problems related to faxing and printing the documents.
• Problems related with filing the documents and making return cheque.

4.3.3 Problems Solved in Clearing Department

After identifying the different problems in clearing department, internee got the
opportunities to solve these problems. They are:

• Helping in receiving cheque given by the customers.


• Helping in faxing and printing the document.
• Helping in keeping record of return cheque
• Helping in stamping on the cheques and rectifying the mistakes.

4.4 Other activities performed


The above mentioned were the department internee spent most of the time to learn
different works. However, internee also performed some miscellaneous activities of
other departments as well. The other activities internee performed being the intern of
RBBL are as follows:

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• Photocopy, Making Calls and Receiving Telephone
The customers make a call to find out about the different schemes of the bank
and to know about the banking rules and regulations. For this purpose, internee
answered the telephone of the customers and assisted them to solve their issues
or confusions related
with any department of the bank. The internee also makes calls to the customer
to provide information about updating their account and fill up the KYC form
where they are required to fill up the details along with the necessary documents
and attaching their recent photographs in the form.
The customers that come into bank for financial transactions need to present
some documents. For this reason, internee was asked to photocopy the
necessary documents required in the bank.

• Providing ATM to Customers


The customers who have filled up the form for ATM card are to be texted
regarding the collection of their ATM card. Internee performed the work of
distributing the ATM cards to the concerned customer by taking their authorized
signature. Once the signature of the customer gets matched, they are provided
with the ATM cards.

• Mail Inward and Outward Collection


Internee also helped the organization by sending some of the important
documents through mail and internee also collected the important documents
from the mail and give it to the concerned authority.

• Activating ATM Card


The customers ATM cards need to be activated for its functioning. Internee
activated the ATM card of customers as well.

• Posting Cheque after its Realization


Internee was also assigned the responsibility of posting the cheques that have
been realized by the clearing house. The cheques posting was done with the
assistance of software ‘Pumori Plus IV’.

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4.5 SWOT Analysis of RBB

SWOT Analysis stands for Strength, Weakness, Opportunities and Threats. SWOT
analysis is a strategic planning technique used to help an organization identify strength,
weaknesses, opportunity and threats related to business competition. SWOT analysis
aims to identify the key internal and external factors seen as important to achieving an
objective. A SWOT analysis is developed to facilitate a realistic, fact-based data driven,
look at the strength and weaknesses of an organization. This can guide business towards
strategic more likely to be successful. Here, the internal strengths and weaknesses of
RBB as well as the external opportunities and threats are:

Strengths
• Banking is as old as Human race: Banking industry like RBB is the driving
force to any nation. It helps in shaping the life of human race may be some time
merely by exchange (which was called barter system), or by transaction or by
facilitating advances.
• Source of employment and GDP growth: There is a consensus among
economists that development of the financial system contributes to economic
growth. Financial development creates enabling conditions for growth through
either a supply-leading (financial development spurs growth) or a demand
following. It is the industry which continuously works to secure financial
stability, facilitate international trade, promote employment and reduce poverty
around the world.
• Hedge from risk: Whether it is natural calamity or man-made calamity banks
like RBB mitigate the after effect of the destruction by providing financial
support to the victims to stand up and lead a peaceful life again. RBB
Koteshwor branch is also giving subsidies and loans to earthquake victims.
• Diversified services: RBB offers services from remittance to insurance, to
loan, to investment.
• Connecting People: With the advent of new page technological advancement
RBB have made the life of the common man easier. People can transact real
time basis in many places.
• Changing from mere savings and loan facilitator role: Top priorities of RBB
now a days include regulatory compliance, improving asset quality, enhancing
customer centricity, focusing on digital convergence and tackling competition

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from non-banks. Banks are therefore making business and technology
investments to change their business models.
Weakness
• Lack of coordination: As diversified employees were working in RBB, some
of them had a lack of coordination while working and in completing the
assigned tasks. Responsibilities obliged were not fulfilled on time.
• Vulnerable to risk: Since this sector deals with finances, it is the riskiest
sector which can change the fate of any RBB at any time.
• High Non-Performing Assets (NPA’s): Rise in retail and corporate NPA’s is
the single major issue this sector is going through worldwide so RBB also will
not be spared.
• Can’t reach to Under-penetrated market: Due to several conflicting
objectives of government and banks which goes hand in hand, rural areas of
Nepal are still not in the shadow of RBB.
• Structural weaknesses: Structural weakness such as fragmented industry
structure, restrictions on capital availability and deployment, lack of
institutional support infrastructure, restrictive labor laws, weak corporate
governance, political pressure and ineffective regulations are also serving as the
weaknesses.

Opportunities
• Expansion: Penetrating to the rural markets and bringing the rural masses under
the concerns of organized banking will be the objective of the RBB in decades
to come.
• Changing socio-cultural and demographic factors: Given the demographic
shifts resulting from changes in age profile and household income, consumers
will increasingly demand enhanced institutional capabilities and service levels
from the bank.
• Trust in government bank: Banking industry across the world is highly
regulated and led by Public Sector Undertaking (PSU’s) with their respective
central banks. But even with the advent of private sector banks, RBB is also
going through structural and functional changes mainly due to the adaptation of
the advanced technologies and increased competition thereby benefiting to the
end customers as increased the trust among customers and other stakeholders
are increased.

36
Threats
• Economic crisis: To the financial system of the bank, traumatic shock of
economic crisis and collapse of the several businesses an affect the banks and
vice-versa like earthquake and economic blockade.
• Competition: Competition from nearby private bank is the main threat for the
RBB Koteshwor branch. Successful banks like Global IME Bank, Nepal Mega
Investment Bank, Himalayan Bank, Nabil Bank and Kumari Bank are just a foot
away from RBB Koteshwor branch. They have various competitive strategies
that can hamper the branch. Thus, RBB should be innovative in tackling those
strategies successfully.

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CHAPTER V CONCLUSION AND LESSON LEARNT
5.1 Conclusion

Internship has been incorporated as an integral part of the BBA program. Internship is
a golden opportunity for the students to learn in a country like ours where people hardly
get access to the practical field while studying. The main goal of an internship is to get
professional experience and put what has been learned thus fair into practice. It is the
grooming period every professional need and simply because one is not an actual
member of an organization does not mean that one can ignore their duties. It is not just
a requirement to pass exams and get a degree, but it is a period where one builds
professional contacts, learns the art of listening and observing.

The main purpose of the internship program was to help the students by allowing them
to be practically involved in the activities carried out in an organization on daily basis.
During the period of internship students got an opportunity to be familiar with the
external environment and analyze the activities that are performed in real life scenario.
It has contributed a lot in grooming interpersonal skills, social skills and academic
skills. It provides an opportunity to gain practical knowledge by exploring theoretical
knowledge into the real working environment.

As for me it was a great exposure to work as an intern at Rastriya Banijya Bank Ltd. I
had a lot of opportunities to learn about different aspects of the banking sector. Intern
got to know about the functioning technique of the banking sector. The various
departments of the bank and their connections were also identified during the period of
internship.

After preparing this report, it has been concluded that the internship program conducted
as a partial fulfillment of requirement for BBA program has been worthwhile in
achieving the objectives of providing the practical application of the theoretical
knowledge. The theoretical knowledge we gained in classroom is not enough to build
our skills and hence the internship program has been proven as important for all the
students.

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5.2 Lesson Learnt

The internship period of 8 weeks at RBB, Koteshwor branch have become a great
experience and fruitful where I gained knowledge on the banking environment in the
commercial bank. I have learned that socializing with the people, dealing with
customers and the coworker or a senior, making the working environment cozier and
friendlier are equally important in the organization. The internship report helps to know
the various processes and working environment of banking in real life. During the
period of internship, the most important lesson internee learned was the working
procedure of the departments. The intern period has proven to be very valuable in
understanding the practical implications and knowledge exposures. The knowledge,
skills learnt during eight weeks of internship can be summarized below:

• Familiar with different activities performed in Customer Service Department


(CSD).
• Learned that the customers are always to be treated properly, and their
problems should be solved with due attention.
• Gained knowledge about general banking operation.
• Knew that real work life is very pressurized and hence cool and calm mind is
essential for working.
• Understood institutional cultures and values.
• Became competent in operating banking system software i.e., Pumori Plus IV.
• Learned to use the supporting devices like printer, scanner and Xerox
machine.
• Boosted confidence level to communicate and coordinate with strangers.
• Handling the work pressure was one of the important attitudes developed
while working in the bank.
• Got clue to treat everyone differently because of the individual differences
between them.

Key Skill and Attitudes Learnt

During the internship period at Rastriya Banijya Bank, Koteshwor Branch Internee has
learned about the environment inside the bank. It has helped lot to grow and develop
skills and attitude. It helped a lot in linking theoretical knowledge that internee had
gained at college with the real and practical work life.

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Key Skill Learnt

Skill is an ability and capacity acquired through deliberate, systematic and sustained
effort to smoothly and adaptively carry out complex activities or job functions
involving ideas, things, and interpersonal skills. Skills can be divided into general and
specific skills. Some general skills would include time management, teamwork and
leadership, self-motivation etc., whereas specific skills would be useful only for a
certain job.
➢ Skills related to dealing with customers
➢ Filing and indexing
➢ Scanning and photocopying
➢ Making cheques and printing cheques
➢ Inquiry of current balance, past banking transactions, signature, account
number, statement etc.
➢ Making and printing statements as per requirement of the customers
➢ Filling forms and vouchers
➢ Handled issues of ATM
➢ Handling Remittance issues
➢ Demat account certificate distribution
➢ Issues related to M-Wallet

Attitudes Learnt

➢ Good Communication
➢ Responsibility towards Work
➢ Positive Attitude
➢ Teamwork
➢ Punctuality
➢ Cooperation

40
BIBLIOGRAPHY

Bahandari, D. R. (2003). Banking and Insurance. Kathamandu: Aayush Publication.

Dahal , B., & Dahal, S. (2000). A Hand Book to Banking . Kaythmandu : Asmita
Publications Pvt. Ltd.

Rose, P. S., & Hudgins, S. C. (2010). Bank Management & Financial Services. New
Delhi: Tata McGraw Hill Education Private Limited.

Shrestha, M. K. (2005). Fundamentals of Banking . Kathmandu: Buddha Academic


Enterprises.

Shrestha, R. G., & Adhikari, G. M. (2009). Macroeconomics (third ed.). Bagbazar,


Kathamandu: Asia Publication Pvt. Ltd.

Singh, & Hriday, B. (2063). Banking and Insurance. Kathmandu, Bagmati, Nepal: Asia
Publication Pvt. Ltd.

Thapa, K. (2019). Banking Law and Regulations (Second ed.). New Baneshwor,
Kathmandu: Khanal Publication Pvt. Ltd.

Thapa, K., & Parajuli, B. (2011). Financial Institutions & Markets. Kathmandu: Januka
Publication.

Websites

• www.rbb.org.np
• www.nrb.org.np
• www.financialnepal.com
• www.newsnepalonline.com
• www.googlescholars.com

Annual reports

• Rastriya Banijya Bank Limited – Annual Report. Kathmandu


APPENDICES

Appendix 1

Deposit Account Details of RBB

S.N. Name of Account Minimum Annual Remarks


Account Code Balance Interest
1 Current a/c 01 3000 0 Business firm

2 Normal saving 10 1000 3.05 Male/Female/Minor

3 Special saving 09 5000 3.50 Male/Female/Minor

4 Mahalaxmi 04 5000 3.50 Female only


saving
5 Karmayogi 07 5000 3.50 Male only
saving
6 Student super 1C 0 3.50 Student
saving
7 Teacher 12 500 3.50 Teacher only
saving
8 Staff saving 11 100 3.50 RBB staff only

9 Police saving 104 0 3.50 Police only

Source: RBB Intranet


Appendix 2

List of commercial banks in Nepal

S.N. Name of the Bank Established Year (A.D.)


1 Nepal Bank Ltd. 1937
2 Rastriya Banjya Bank Ltd. 1966
3 Agriculture Development Bank Ltd. 1968
4 Nabil Bank Ltd. 1984
5 Nepal Investment Bank Ltd. 1986
6 Standard Chartered Bank Ltd. 1987
7 Himalayan Bank Ltd. 1993
8 Nepal SBI Bank Ltd. 1993
9 Nepal Bangladesh Bank Ltd. 1993
10 Everest Bank Ltd. 1994
11 Bank of Kathmandu Ltd. 1995
12 Nepal Credit and Commerce Bank Ltd. 1996
13 NIC Asia Bank Ltd. 1998
14 Machhapuchchhre Bank Ltd. 2000
15 Kumari Bank Ltd. 2001
16 Laxmi Bank Ltd. 2002
17 Siddhartha Bank Ltd. 2002
18 Global IME Bank Ltd. 2007
19 Citizens Bank International Ltd. 2007
20 Prime Commercial Bank Ltd. 2007
21 Sunrise Bank Ltd. 2007
22 NMB Bank Ltd. 2008
23 Mega Bank Nepal Limited 2010
24 Civil Bank Ltd. 2010
25 Century Commercial Bank Ltd. 2011
26 Sanima Bank Ltd. 2012
27 Prabhu Bank Ltd. 2016
Source: www.nrb.org.np

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