CHAPTER ONE

INTRODUCTION
1.1 Background
Bachelor in Business Administration (BBA) program is the undergraduate level program of
Tribhuvan University (T.U). It is a four year course with 120 credit hours comprehensive
bachelor degree program .It is further divided into eight semester(two semester in each year).It is
mainly practical oriented which emphasizes to provide student a practical knowledge. It aims to
prepare students to become competent, confident, skilled and socially responsive professional
who can effectively support managerial, entrepreneurial and leadership role in business and
social organization. It is student oriented course where students should be actively participated.
Its syllabus has been designed in such a way that it has tried to give student knowledge from
almost every field like psychology, sociology, business law, Information Technology(IT) etc. It
has got grade system of marking in GPA. Due to this distinctiveness BBA program is getting
popular among the students and is becoming the first choice of every students of management
field.
In the course study of BBA program students are required to do the internship in their specialized
field. Internship is simply the applied form of knowledge. It is relatively short term in nature
with the primary focus on getting some on the job training and taking whats learned in the
classroom and applying it to the real world. In the beginning of 7 th semester students are
provided an opportunity to choose one special field for the purpose of specialization. Finally in
8th semester they have to work minimum 8 weeks in that specialized field which is called
internship.
This is a report on the Customer Service and Clearing Department of Everest Bank Limited as
one of the leading Commercial Bank of Nepal, as mentioned earlier, and since I had completed
my internship from the Thamel, Branch Office all the details related to the Customer Service and
Clearing function is based on that particular branch.

1.2 Objective of the Report

The general objective of the study is to fulfill the requirement for the degree if Bachelor in
Business Administration. The major objective is to make the BBA student relevant in the real
world situation. Besides this, the specific objectives are as follows:
To present the practical insights about the banking activities.
To explain the knowledge about the financial institution and its daily workings in a practical
scenario.
To identify the various activities done under Customer Service and Clearing Department.
To explain the relation between the theoretical and practical knowledge of the bank in action.

To fulfill the partial requirement of BBA program at Tribhuvan University.

1.3 Methodology
Completion of internship is a combination of the different types of activities. It starts from the
selection of the organization for the internship, performance of different kinds of activities and
placement in different parts of the organization and at last collection of various primary and
secondary data for the preparation of the report. In terms of data collection both primary as well
as secondary source had been used. In case of primary source, observation and personal
interview with the staffs are used and in case of secondary source, the brochures, published
reports and documents, website of the bank and other related websites had been used.
Following methodologies are used to study the organization:

1.3.1 Organization Selection

The most important and the initial part in the internship program is the selection of the
organization. It is the basis from which interns get the platform to learn something and analyze
the practical implication of the theoretical aspects learnt in the academic session.
In this competitive market it is not an easy task to find intern in the reputed organization.
Campus provided recommendation letter which internee dropped in the Human Resource
Department (HRD) of Everest Bank Limited along with the CV.There were other numerous
applicants applying for their internship. So it was a tough job for HRD Head to select few
amongst all. There was regular follow up calls to the HRD which revealed interest and
enthusiasm to work in EBL. After a week internee was informed that internee was selected and
could start internship period. Finally, internee joined the bank as an intern from June 13th 2012.

1.3.2 Placement
On 13th June, 2012 internee was placed to EBL Thamel, Branch office to start her internship.
There, the internee met branch manager and was asked to meet Officer In charge and as per her
order internee was placed in customer service department for three weeks under the supervision
of CSD supervisor. After the completion of three weeks in CSD, internee was referred to the
Clearing department for rest remaining five weeks under the supervision of clearing supervisor.

1.3.3 Duration of internship

The duration of internship period has been defined for 8 weeks by Tribhuvan University, so as
per the specified period, intern worked in EBL Thamel branch from 13th June, 2012 to 10th
August, 2012. Internee thought those eight weeks were really fruitful and it will definitely help
in upcoming days. It was the internship program that helps to internee to be familiar with the
organization culture, work environment and working procedure of the EBL. The placement of
internship is shown in the table below:

Activities/Weeks

CSD
Clearing department

1.3.4 Sources of Data

The following sources have been used to collect the necessary data:
a) Primary source of data
The required information was collected through the discussion and information provided by the
officials of EBL.
b) Secondary source of data
The secondary data was collected from the secondary sources like: annual report, broucher,
official website and other publication.

1.3.5 Activities Performed in the Bank

b)

a) Customer service department

Account opening (Personnel and Corporate)
Issuance of Debit card and cheque book
Account closing
Balance inquiry and other information about the bank service
Providing information about products to the customers
Issuing of account statements and balance certificate
Solving the queries of the customers
Clearing department
Endorsing the cheque
Keeping record of clearing cheque as well as returned cheques
Forward inter-bank cheques to head office

1.4 Limitation of the Study

a)
b)
c)
d)

Every field of study has some or the other limitations and so in the case of internship report as
well .There is some limitations that are faced at the time of my report preparation and they are as
follows:
The study is limited to only one financial institution.
It does not give detail view of overall functioning of the bank.
Lack of adequate time to learn, complete and detailed works in just eight weeks.
This report is prepared on the basis of available data and the information provided by the bank
and its staffs.

CHAPTER TWO
INTRODUCTION TO THE INDUSTRY
2.1 Background
A Bank is a depository financial institution which purchases money and sells money for money.
In this way, a bank is a sensitive sector of the industry because it plays with the public money.
The primary operating activity of any bank is to collect fund in the form of deposit from the
surplus sector of the economy and transfer this collected fund to the deficit unit of the economy
in the form of loans. The benefit that the surplus unit gets by depositing their access fund in the
bank and the charge that the deficit unit pays for using the fund of the bank are both expressed in
percentage and that rate is known as the interest rate. The difference between the lending interest
rate and borrowing interest rate is called interest spread and this spread is the major source of
income of any bank.
According to Nepal Rastra Bank Act 2002 Bank is a financial institution, which provides
financial services that may be in the form of accepting deposits, advancing loan, providing
necessary technical advice, dealing over foreign currencies, remitting funds, etc.
According to Indian Banking Company Act 1949 Banking means the accepting for the
purpose of lending or investment of deposit of money from the public, repayable on demand or
otherwise and withdrawal by cheque draft order or otherwise.
In simple, bank is an institution which deals with money and credit. A bank is a financial
institution that serves as a financial intermediary, who bridges gap between the
savers of the fund and users of the fund. Bank exists in the economy to perform the
function of the intermediary. Banks intermediates not only the surplus and deficit units but also
perform various management activity to create a balance in the economy. It should perform the
size intermediation because in general surplus units are large in number but they less amount of

surplus funds and the opposite scenario is of the deficit side. Similarly it should perform the
maturity and information intermediation as per the requirement.

2.2 History of Banking

The concept of banking is not a modern concept. This concept had started to evolve in the
brilliant human mind immediately after the humans were able to realize and develop money.
Though money had made the human life much easier than before but ancient humans started to
realize the complexities that evolution of money had created in their life. So, in order to
overcome these complexities and the difficulties that were attached with the benefit of money the
concept of banking emerged in the human mind. Earlier the moneylenders and the landlords
perform the banking activities as the informal banks but later the activities of these people are
formalized and the concept of bank as an institution had emerged.
Moving towards the word Bank, it is thought to be derived from the Italian word Banco,
Latin word Bancus and French word Banque because all meant the bench in which the
bankers would keep money and its records. The Jews of Lambardy were thought to be the early
bankers who transacted third business at the benches in the marketplace and when they were
unable to meet their liabilities, the depositors used to break their benches and this tradition had
given birth to a banking term Bankrupt.The first ancient Bank of the world is supposed to be
the Bank of Venice which was established in 1157 A.D. Following the footsteps of this bank,
other two banks were established in 1401 and 1407 named Bank of Barcelona and Bank of
Geneva, respectively. The crucial breakthrough in the modern banking history was made in 1694
A.D when the first modern bank The Bank of England was established. After the establishment
of this first English Bank, Banking sector had experienced various ups and downs but still they
persisted and because of that persistence they are now able to exist in this 21st century world as
one of the essential element of human life.
Presently, banks are not only the deposits collecting and loan lending institutions but also the
institutions which helps its customers from various ways as per their convenience and ability
with full security. They had been developed as the essential service providing institutions in this
rushing world. Hence, banking had become an important element of the world economy in the
present time.

2.3 Evolution of Banking Industry in Nepal

Though the world had already leaped forward towards the modern banking practices but till 1937
A.D, the Nepalese were completely unaware of these developments and still using the money
lenders and the rural landlords as the informal banks. This scenario is enough to explain that the
banking history of Nepal is not too long. Only after the establishment of Nepal Bank Limited in
1937 as the first Nepali Bank, Nepalese people came to know that there is also another way to
get loans except the goldsmiths, and the moneylenders and this can be formalized in the form of
institution named Bank.

Tejarath Adda established during the tenure of the Prime Minister Ranoddip Singh (1993 B.S)
this was the first step towards the institutional development of banking in Nepal. It tendered a
good service to give loans to government employees and public against bullion.
Banking in modern sense started with the inception of Nepal Bank Limited (NBL).Nepal Bank
Limited was established in 1994 B.S, as a semi-government organization without existence of a
central bank in the country under special Banking Act 1936, having elementary functions of a
commercial bank. 51% of the paid up capital of Nepal Bank Limited is owned by the
Government and 49% owned by the public. Later, on Nepal Rastra Bank was set up on 2013 B.S.
as the first central bank under Nepal Rastra Bank Act 2012 B.S with an objective of supervising,
protecting and directing the functions of commercial banking activities. Another commercial
bank fully owned by the government, Rastriya Banijya Bank was established in 1996,which
made it possible for the Nepal Rastra Bank to devote more attention to the important aspects of
economic, monetary and fiscal development. Industrial development center was set up in 2013
B.S it was converted into Nepal Industrial Development Corporation. Agricultural Development
Bank established in 2024 to finance agricultural produces.
Joint venture banks in Nepal gave a new horizon to the financial sector of the country. Nepal
Arab Bank Limited later renamed as Nabil Bank Limited in 2041 B.S as a first joint venture bank
to be a milestone in the history of banking which gave hope to the sluggish financial sector.
After the restoration of democracy in Nepal there has been tremendous development in banking
sector. The economic and financial reform policies undertaken by the government have increased
both number of banks and the types of services offered. The category of banks in the context of
Nepal are shown in the table.
Category

Component

KA
KHA
GA
GHA

Commercial Banks
Development Banks
Finance Companies
Micro Credit institutions, Co-operatives

Minimum
paid
up Number
capital requirement
200 crore
32
64 crore
89
20 crore
79
1 crore
21

Since the interne had completed the internship in one of the commercial bank of Nepal, the
analysis is specifically focused on the KA category depository institutions i.e. the Commercial
Bank.

2.4 Introduction of Commercial Bank

Like all financial intermediaries, the commercial bank acquires funds one group of surplus
spending units and makes these funds available to other deficit units. It provides transactional,
savings and money market accounts and that accepts time deposits. Commercial banking may
also be seen as distinct from retail banking, which involves the provision of financial services

direct to clients. The powers are available to commercial banks by seeing the sources and uses of
funds available to the typical bank. An institution which accepts deposits, makes business loans,
and offers related services. Commercial banks also allow for a variety of deposit accounts, such
as checking, savings, and time deposit. These institutions are run to make a profit and owned by
a group of individuals, yet some may be members of the Federal Reserve System. While
commercial banks offer services to individuals, they are primarily concerned with receiving
deposits and lending to businesses. Because of being the member of the central bank, the
scheduled commercial banks enjoy a strong and financial goodwill which attracts huge amount
of deposits industrialists, traders and the public at large. Commercial Banks extend various types
of credit facilities to their constituents, to enable them carry out their business activities. These
facilities may be broadly divided into two categories:
Funded and
Non- funded facilities
Funded facilities are those, where Banks actually part with money. Non funded facilities, on the
other hand, are those where the Bank does not actually part with money, but promises to do so,
contingent upon the occurrence of certain events. Which means, unless the said event occurs, the
Bank will not be called upon to part with money.
In Nepal the financial sector is growing in slow pace that has supported its economy to some
extent. Nevertheless the partition of the financial sector can be done on the basis of banking and
non banking financial sectors. The embanking system comprises of thirty one commercial banks,
eighty eight development banks, seventy nine finance companies and twenty one graven bikas
banks. The non-banking financial system includes many finance companies, contractual saving
institutions (employees provident fund and insurance companies), cooperative financial
institution, non-governmental organization (NGOs), postal saving offices, etc. Nepal bank
limited is the first and oldest commercial bank of Nepal that was established in 1937 A.D.
However, the second Rastriya Banijya Bank came in operation in 1966 A.D. in particular;
commercial banks can help a firm speed up the collections as well as delay its cash
disbursements. The first joint venture bank was established in 1984 A.D. The commercial
banking sector accounts for 53 percent of total financial system assets when NRB is included and 74 percent if NRB is excluded. Rastriya Banijya Bank and Nepal Bank Limited dominate the
commercial banking sector, holding around about 60 to 65 percent of total commercial banking
system assets.
One of the most important operations of it is to determine the creditworthiness of potential
borrowers. The commercial banks can comfortably use so much leverage is that they have the
ability to diversify much more than most other types of businesses. The operation activity of
commercial banks includes:
Deposit collection
Liquidity management
Credit administration
Capital structure management

2.5 Functions of Commercial Banks in Nepal

The functions of commercial banks are divided into two categories:
1) Primary Functions

The primary functions of a commercial bank include:

Accepting deposit
Advancing loan
Discounting bill of exchange
Transfer of money

2) Secondary Functions
The secondary functions of a commercial bank include:
Issuing letters of credit, travelers' cheques, circular notes etc.
Undertaking safe custody of valuables, important documents, and securities by providing safe deposit vaults

or lockers.
Transferring money from one place to another and from one branch to another branch of the bank.
Standing guarantee on behalf of its customers, for making payments for purchase of goods, machinery,
vehicles etc.
Collecting and supplying business information.
Issuing demand drafts and pay orders and
Providing reports on the credit worthiness of customers.

Thus, the primary and secondary functions performed by bank are the essential to meet the
overall objectives of the bank.

CHAPTER THREE
INTRODUCTION TO THE ORGANIZATION
3.1Background
Everest Bank Limited (EBL) started its operations in 1994 with a view and objective of extending
professionalized and efficient banking services to various segments of the society. The bank is
providing customer-friendly services through its Branch Network. All the branches of the bank

are connected through Anywhere Branch Banking System (ABBS), which enables customers for
operational transactions from any branches.
With an aim to help Nepalese citizens working abroad, the bank has entered into arrangements
with banks and finance companies in different countries, which enable quick remittance of
funds by the Nepalese citizens in countries like UAE, Kuwait, Bahrain, Qatar, Saudi Arabia,
Malaysia, Singapore and U K. Bank has set up its representative offices at New Delhi (India) to
support Nepalese citizen remitting money and advising banking related services.
Punjab National Bank (PNB), the joint venture partner of Everest Bank (holding 20% equity in
the bank) is the largest nationalized bank in India. With its presence virtually in all the important
centers at India, Punjab National Bank offers a wide variety of banking services which include
corporate and personal banking, industrial finance, agricultural finance, financing of trade and
international banking. Among the clients of the Bank are Indian conglomerates, medium and
small industrial units, exporters, non-resident Indians and multinational companies. The large
presence and vast resource base have helped the Bank to build strong links with trade and
industry.
Recognizing the value of offering a complete range of services, EBL has pioneered in extending
various customer friendly products such as Home Loan, Education Loan, EBL Flexi Loan, EBL
Property Plus (Future Lease Rental), Home Equity Loan, Vehicle Loan, Loan Against Share, Loan
Against Life Insurance Policy and Loan for Professionals.

EBL was one of the first banks to introduce Any Branch Banking System (ABBS) in Nepal. EBL
has introduced Mobile Vehicle Banking system to serve the segment. EBL is one of the
renowned institutions. The capital structure which includes authorized capital is
Rs2,000,000,000. Similarly the issued capital is Rs1,281,406,500 and the paid-up capital is
Rs1,279,609,490. The vision and mission of EBL are as follows:

Vision
To evolve & position the bank as a progressive, cost effective & customer friendly institution
providing comprehensive financial and related services.
To integrate the frontiers of technology & serving the various segments of society.
To be committed to excellence in corporate values.
Mission
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 latest technology aimed at customer satisfaction & act as an effective catalyst for
socio-economic developments.
Every organization has its own structure to depict its line of authority and accountability. There
are top level management, middle level management and lower level management. Top level
manager is superior to middle level manager. Lower level manager is at the low level.
Organizational structure of EBL is shown in the figure below:

EBL Functional Chart (Source: Annual Report)

3.1.1 Awards
Since EBL is one of the renowned institution among the various financial institution of Nepal.
The awards received are as follows:
The bank has been conferred with Bank of the Year 2006, Nepal by the Banker, a publication
of financial times, London.

The bank was bestowed with the NICCI Excellence award by Nepal India Chamber of
Commerce for its spectacular performance under finance sector.
3.1.2 Pioneer Achievements
The pioneer achievements of EBL are:
EBL was one of the first banks to introduce Any Branch Banking System (ABBS) in
Nepal.
EBL has introduced Mobile Vehicle Banking system to serve the segment deprived of
proper banking facilities through its Birtamod Branch, which is the first of its kind.
EBL has introduced branchless banking system first time in Nepal to cover unbanked
sector of Nepalese society.
EBL is first bank that has launched e-ticketing system in Nepal. EBL customer can buy
yeti airlines ticket through internet.

3.1.3 Objectives
The objectives of EBL are listed below:
To become the bank of first choice.
To bridge the gap between saver and borrowers efficiently and effectively.
To provide the higher expected rate of return on investment.

3.2Main Business Activities of EBL

EBLs main business activities are to perform all the business transactions of a typical
commercial bank.
It accepts deposit such as current, saving, fixed deposit etc and grant different types of loans
such as education loan, home loan, professional loan etc.
It transfers money from one place to another through the means of draft, SWIFT, at its
customers request.
It provides safe deposit lockers of different sizes.
It purchases and sales foreign currencies and travelers cheque.
It acts as guarantor on the behalf of its customers.
It provides LC (letter of credit) services to its customers.
It provides other services like ATM, ABBS, e-banking etc.

3.3 Shareholding Structure

The local Nepalese promoters hold 50 percent stake in the banks equity, while 20 percent of the
equity is contributed by joint venture partner PNB who has also undertaken management
responsibility under a Technical Service Agreement (TSA). The remaining 30 percent is held by
the general public. This is shown in the following table:

Group

Categories

% of holding

Nepalese Promoters Ownership

50%

B
C
Total

General Public
Joint Venture (PunjabNational Bank, India)

30%
20%
100%

The share ownership discussed above of EBL is shown in the following pie-chart.

3.4 Product and Services Provided by EBL

EBL offers a wide variety of products and services, catering to wide range of customers from
individuals, to mid market local corporate to multinationals and large public sector companies, as
well as embassies, aid agencies, airlines, hotels and government corporations.
Everest Banks policy is to extend quality services to its customer as properly as possible. Banks
policy is to extend quality services to its customers as properly as possible. Personalized services
are provided to all clients. To extend more efficient services to its customer, EBL has adopted
innovated and latest banking technology. Everest Bank tailors the facilities extended to its
clients, taking into account their need and requirement, besides the normal services, EBL has
been providing the following services to their customers. In many of these services, EBL has the
pioneer.

3.4.1 Deposit

EBL offers a wide array of deposits schemes in both local and foreign currencies to help the
customer earn competitive interest rates in order to maximize returns on investment. Some of the
deposits schemes are as follows:
Current account
Saving account
The types of saving account are: normal saving, naari bachat khata, saving premium account,
baal bachat khata, saugat bachat khata and freedom saving account.
Fixed deposit account
The types of fixed deposit account are: supreme deposit, cumulative deposit scheme, cash
certificate scheme and unfixed fixed deposit scheme.
Recurring deposit account
The types of recurring deposit account are: sunaulo bavisya yogana and flexi recurring deposit
account.
FCY deposit account
The types of FCY deposit account are: USD account and EBL NRN deposit account.
Retirement plan account

3.4.2 Loans and Advances

EBL provides credit on competitive terms by way of term loans as well for financing working
capital needs of all kinds of productive and income generating activities. Regarding Consumer
Lending Schemes it has following major schemes:
Direct Housing Loan
Vehicle Loan
Education Loan
EBL Property Plus
Professional Loan Scheme
Loan Against Mortgage
Loan Against Share
Home Equity Loan

3.4.3 Trade Finance Activities

The bank provides their customer with letters of credit and guarantees, etc facilities to facilitate
their business transactions.

3.4.4 Remittance Facilities

Remittance can be made to any part of the world by way of SWIFT Transfer instantly in addition
to the conventional facilities like demand drafts, Travelers cheques etc. EBL has drawing
arrangements with about 130 branches all over India for remittance to India. EBL facilitates both
Inward and Outward remittance.

3.4.5 Foreign Exchange Facilities

The bank provides facilities for financing the export and import business, exchange (sale and
purchase) of foreign currencies, forward exchange contracts, etc.

3.4.6 Cards and ATMs Facilities

EBL debit card is a plastic card which provides an alternative payment method to cash when
making purchases or cash withdrawal from ATM centers. It is associated with Smart Choice
Technology (SCT), it facilitates wide sharing of ATMs under SCT network from more than 650
Locations throughout Nepal. EBL debit card holder can also have the withdrawal facility from
over 5000 PNB ATM in India.

3.4.7 E-banking Facilities

EBL offers E-banking facilities too. Through a computer connected to the Internet, customer can
log on the Everest Net Site and do various banking transactions from anywhere at any time.
Internet Banking

It is used for:
Account summary/ Statements
Balance Inquiry
Fund Transfers
Offline Requests (Cheque books, remittance etc.)
Ordering for different types of payments

3.4.8 Any Branch Banking System (ABBS)

EBL provides any branch banking service where customer can conduct their business or make
transaction from any of branch of EBL, deposit of where they have opened their account. There
is no charge EBL provides any branch banking service where customer can conduct their
business or make within the branch of Kathmandu valley and in case of outside the valley bank
charge basically 150 per transaction.

3.5 Financial Indicators of EBL

The financial indicator of EBL is shown in the table below:

Indicators

2008/09

2009/10

2010/2011

Deposit
Loan and Advances
Operating Profit
Total Income
Total Expenses
Earning per share
Market per share
Price earning ratio
Cash reserve ratio

33322.9
612.0
1073.5
2565.3
1491.8
99.99
2455
24.55
14.26

36932.3
704.6
1349.1
3500.8
2151.7
100.16
1630
16.27
15.53

41127.9
782.0
1516.7
4728.8
3212.1
83.18
1094
13.15
9.55

Net Profit

638.7

831.8

931.3

Thus, these financial indicators indicate the overall status of Everest Bank Limited in the global
context. These indicators help to measure the performance and operational goals. These
indicators strive to cover the issues of financial stabilityas a systematic phenomenon and
therefore concern to financial institution and markets.

CHAPTER FOUR
ANALYSIS OF ACTIVITIES DONE AND PROBLEMS SOLVED
4.1 Background
As an internee, it was indeed a great opportunity to know about the banking activities in depth.
The internee was rotated through various departments of the bank, which exposed her to the real
world of the bank and observed the real operations of the bank as the internee had only the
theoretical knowledge. During the internship, internee had performed to activities mainly in
customer service and clearing department. To generate the profit, a financial institution needs

customers and receives the amount through different names of deposits. At EBL internee had an
opportunity to study and observe in details about the customer services, new account opening
procedures, deposit procedure and clearing procedure of EBL.

4.2 Customer Service Department (Front Desk)

Customer service is the front desk of any organization. For any organization, it is the important
place which makes an early impression to the clients. It is the place where customers make the
first contact with the clients. The image and the reputation of bank depend upon effective
functioning of this department. It is the first place where the customers first get the service.
It is very important to know that a highly satisfied customer stays loyal longer, buys more as the
organization introduces new product, pays less attention to competing brands and is less sensitive
to price. A significant number of this kind of customers is only possible through the efficient
functioning of customer service department of any organization. It would then not be
inappropriate to say that this department is the key to success of any organization.
This department is involved in various activities from opening an account to its closing,
providing account statement as per customer demand, issuing ATM etc. The basic functions of
this department are customer counseling, account operations and distribution activities
etc.Customer counseling is most important functions of customer service department. A
customer is the most important visitors on the premises. He does not depend on us, we are
depended on him. He is not the interruption on our business. He is part of it. We are not doing
him a favor by serving him. He is doing us a favor by giving us an opportunity to do so.
Customers are related as a god because they are the one for whom the product are design. As
Everest value the customer trust, they have implemented the policies and procedure just to
safeguard the account and the personal as well as the financial information for their customers.
The point detailed here is mainly associated with the customers personal account. This is
because they treat business account information with great cares, so they respect the privacy off
all their customers. They are:

Provides the highest quality service

EBL CSD provides quick response to the customers and maintains accurate, up to date account
records.

Protect customer information

CSD is only the place from where most of the information is gathered. Thus EBLs CSD
confirms the identity when a customer makes a constant just to safeguard against unauthorized
access other account.
Makes banking more convenient

The information provided convenience for the customer to do virtually all banking when and
where they want through telephone and web banking service.
Make Aware of service
The banking problem being faced by the customer is identified by CSD in a most effective way.
They clarify about the entire product as well as services provided by the bank to their customer.

4.3 Major Activities Performed on Customer Service Department

The major activities performed on customer service department are listed as below:

4.3.1 Account Opening

During the internship period internee was placed in Customer Service Department thereby,
helped customers in opening accounts. Therefore, performed the following functions:
Provided the account opening form
Provided the information on minimum balance requirement and the interest rate in various
schemes
Verified the attached documents
Prepared the voucher for deposits
Opened the account in Finnacle
Documents to be enclosed for Account Opening
The documents needed for the account opening varies from one account to another account. The
individual needs less document but a corporate organization needs more documents and more
formalities too. The documents needed as per account can be shown as below:
a) Current Account
It is an account on which any amount deposited can be withdrawn through a cheque. It is also
known as checking account. It consists of:
Proprietorship Account:
A business firm registered in the name of a person/proprietor is known as Sole Proprietorship
Firm. The proprietor bears all the profit or loss of the business. Requirements for opening
proprietorship account:

Registration Certificate
Tax Certificate
Citizenship Certificated Proprietor
2 PP size photos

Partnership Account

A firm registered in the name of more than one individual is known as Partnership firm. The
profit and loss from the business operation is shared by the partners. Requirements for opening
partnership account:

Partnership Agreement deed

Firm Registration Certificate
Tax Certificate
Citizenship Certificate of Partners
2 PP size photos of partners

Limited Company Account

Limited Company Account can be maintained by both private and public limited companies.
Requirement for opening proprietorship accountare:

Registration Certificate

Memorandum & Articles of Association

Name, Address of directors & Office Bearers of the Limited Company with copy Citizenship
Certificate

Name & Signatures of the Persons Authorized to Operate an account

Operation Commencement Certificate (for Public Ltd. Co.)

Resolution of Board of Directors regarding opening & conduct of an account

Tax Certificate

Club Society & Association Account

Various clubs, social institutions, etc can also open accounts by fulfilling the requirements.
Requirements for opening this account:

Registration Certificate

List of Office Bearers

Resolution Regarding Opening & Conduct of Account.

Name & Signature of the persons authorized to operate the account.

b) Saving Account

Basic requirements for opening Personal Account

Citizenship Certificate or Passport.
2 PP size photos.
Basic requirements for opening Joint Account

Documents certified from concerned Embassy.

All documents required for personal account for all joint parties.

Special instruction must be provided to the bank in the application form in case of any one
signature among the joint account holders.

ATM/Debit Card is not provided to joint account holders.

c) Call Account
The documents required is same as of other saving accounts. After getting the above
requirements the customer service department opens the account using the banking software i.e.
Finnacle Software. It assigns the account number which is of fourteen digits, accepts the deposit
after filling up the deposit slip (voucher) and issues cheque book and ATM/Debit card to the
account holder. Cheque books are issued instantly. Individual and non-profit making organization
generally operate saving account in the bank to earn interest. Its main purpose is to encourage the
habit of saving among the civilian and institution. Though saving deposit is known for saving
purpose, most of the banks allow its customer to withdraw limited or restricted amount of
money. If the account holder wants to withdraw more than restricted level, prior information is
required.

4.3.2 Account Closing

As per the request of the customer, account closing is also performed. For this account closing
form should be filled by customer who is examined by staff and forwarded for verification. As
per the rule of bank, certain balance is deducted as closing charge and remaining amount is
refund to the customer.

Following functions are performed for it

Provided the account closing form
Known the reason for closing the account
Verified the signature
Ensured the unused cheques, used ATM card are returned back to bank
Finally handled the documents to the authorized personnel

4.3.3 Provided Safe Deposit Locker

For locker facility some steps to be followed:

The customer must maintain an account with bank.

Identification documents must be submitted with filling locker form.
Deposit should be maintained.
Everest safe deposit locker ensured that your most precious, be it jewelry, passport, share
certificate are secured in our world class Safe Deposit Locker from fire and theft. There are three
sizes of locker; they are LARGE, MEDIUM, and SMALL. The cost is 3500, 2500, 1500
accordingly.

4.3.4 Issuance of Account Statement and Balance Certificate

The account statement and balance certificate is provided to the customer on the demand basis.
Statements should be collected by account holders of person assigned by the customer. Fee is not
charged for statement but for balance certificate fee is charged.

4.3.5 ATM Card Issuance

ATM card is issued to the customer after completing the account opening process. Maintained
registered, verified and entry in Finnacle is made and then ATM is given to customer. Basically
Rs200 is charged for ATM cards.
The individual customers having Saving Account, Current Account and Saving Premium
Account maintaining the minimum balance is eligible for the EBL Debit Card. An EBL debit
cardholders could draw cash from PNB ATMs in India with withdrawal charge of NPR 160 per
transaction and charge of NPR 24 per balance inquiry. The maximum limit of withdrawal per
transaction is NPR 16,000 and per day limit is NPR 16,000 (In India), whereas monthly limit is
NPR 160,000. Similarly, a PNB debit cardholders could draw cash from EBL ATMs in Nepal
with withdrawal charge of INR 50 per transaction and charge of INR per balance inquiry. In
Nepal customer can withdraw Rs100000 in a day.

4.3.6 Cheque Book and ATM Delivery

The cheque books are prepared after making the entry of account opening in computer system.
The customer can collect their cheque book only next day after giving request for cheque book.
Respective customer should be presented for taking cheque book for first time issue and for ATM
they must be compulsorily presented.

4.3.7 Dealing and Handling Customer Grievances

The overall functioning of this department is concerned with dealing with the customer and
handling their grievances. People with different queries and problems come in the bank. In my
stay at this bank I handle different types of problems of the customer related to loss of cheque
book, debit card, forgetting of PIN No. and so forth.

4.3.8 Use of Office Equipment

Various office equipment are used like photocopy machine, cheque writer, printer, fax machine,
ECC machine etc for various tasks.

4.3.9 Other Activities

Mainly the activities related to providing effective services to the customer are done. Besides that
other activities like cash sorting, telephone handling, filing, clearing preparation etc are done.
During her stay the internee was able to perform various task assigned by the supervisors.
Thus, various activities are done which helped the internee to enhance the skill in dealing with
customer, answering their queries and handling their grievances. It helped to develop the
managerial attitude and behavior to carry out managerial function in future.

4.4 Clearing Department

Clearing is a process by which a banker exchanges cheques drawn against another bank and
deposited at their bank for collection or clearance from their customer at the clearing house.
Customers deposit cheque, drafts in their accounts, which are drawn on various banks and bank
serves their customers by helping them collect the fund in their account through clearing
function. Fund realized and credited in customers account next working days.

4.4.1 Functions of Clearing Department

The functions if clearing department are as follows:

To accept transfer deliveries and clearing cheques from the customer of the branch and to
arrange for their collection.
To arrange the payment of cheque drawn on the branch and given for collection to any other
branch of EBL or any other members, or sub-members of the local clearing house.

4.4.2 Parties Involved in Clearing Process

Basically there are three parties involved in the clearing process. They are:
a) Applicant Bank
b) Nepal Rastra Bank
c) Beneficiary Bank

Applicant Bank
The applicant bank is those who receive the cheque of other bank with a deposit voucher of
itsown bank including the stamp of the party, signatures and the account number.

Nepal Rastra Bank

Nepal Rastra bank acts as the intermediary between the applicant bank and the beneficiary bank.
It carries out the settlement procedure related to the collected cheques and drafts. It is also
known as the clearing house of Nepal.

Beneficiary Bank
Beneficiary bank are those on whom the cheque is to be credited.

4.4.3 Clearing Procedure of EBL, Thamel

Clearing procedure starts with the receiving of cheque of other bank with its deposit voucher
attached to it in EBL. The outward clearing cheques are initially listed in the clearing cheque
register book to keep the records of clearing cheque. Then, those cheque are separated on behalf
of local currency cheque and foreign currency cheque. After the separation of the cheque, EBL
stamp is given on the face as well as back side of the cheque. After this process, the cheque is put
through the ECC system that is the Electronic Clearing Cheque system through which the cheque
is passed automatically to the clearing head office Baneshwor Branch. Then the clearing
head office Baneshwor transfer the cheque to the intermediary bank or the clearing house that is
Nepal Rastra Bank for the final settlement of clearing the cheques. Finally, the beneficiary bank
is credited and the applicant bank is debited of its account through ECC system. Thus, the
process of clearing cheque ends here.

4.4.4 Local Currency Clearing

Local currency clearing settlement deals with the settlement of local currency that is NRP in the
context of Nepal through the clearing house. This settlement is carried out by each and every
members of the clearing house. Except Thursday and Saturday, clearing of local currency is
done.

4.4.5 Foreign Currency Clearing

The foreign currency cheque and drafts collected by the clearing members of the clearing house
are settled for the clearance of foreign currency. However, the convertible foreign currencies that

have been fixed by NRB are only settled. The clearing of foreign currencies are not carried out at
Thursday, Friday and Saturday in Nepal avoiding the national holidays.

4.4.6 Reporting of Cheque Return

All the collected home cheques re-fund cheques and return cheques from NRB should enter in
the computer system. Here at EBL bank Finnacle software was used to keep the record track of
the respective cheques. Some of the cheques may not be sound for making the payment so here
we need to make the explanation of the return cheques. For the description process, date, client
name, client code, name of the bank, reasons for return and the account number is recorded.
Representative member should then prepare a statement of cheques returned as per format and
fax it to the clearing house. The returned cheques are returned to the respective bank through
ECC system. Bank should return the cheque to the particular bank with the memo slip defining
the reason of dishonor. The associate of the bank receiving the cheque should confirm the receipt
of the cheque by signing at the register of the presenting bank. The original memo slip is
provided to the receiving bank and the duplicate is brought back by the returning bank as it
confirms the receipt of the cheque.

4.4.7 Flow of Clearing Cheque

Description of the Above Figure

After making the deposit of the cheque, documentation process is carried out looking to the
details of it. It is to check whether the cheque so presented is outward or inward cheque. The
outward cheque goes for clearing. There are two main processes about the compliance and
noncompliance of the cheque. If there occurs compliance, the cheque is instantly settled. In case
if it does not fulfill the criteria of cheque standards, it is dishonored and finally returned bank to
the respective banks.

CHAPTER FIVE
CONCLUSION AND LESSON LEARNT
5.1 Conclusion
Commercial Bank in Nepal could be viable only if they could provide maximum qualitative
services to the customer of the bank who is the main source of income for the banks. Without the
customer no bank can fulfill its objectives. To maintain the standard of the bank it should always
look for measure to adapt to changes to a better level.
This report has been prepared as the partial fulfillment of eighth semester of BBA under TU.
Everest bank limited proved to be a strong mainstay for building up my professional career. The
internship gave me the perfect opening to plant my acquaintance in the appropriate field. It
helped me to apply the years long theoretical lessons into practical area. Further, in past 8
weeks, I learned to work under pressure and broadened my knowledge, vision, ability and

confidence to perform in real working upbringing. It was a great chance to gain practical
knowledge of banking sector. Beside this, the supervisors were extremely helpful in guiding on
our internship program.
It was the great experience working as an intern in Everest bank limited. The operational
environment was friendly. There was good communication and healthy relationship in between
the different levels of staffs. The author was able to find out various services offered and
facilities provided by Everest bank limited. Working as an intern mainly provided us an
opportunity to learn about practical implication in our career building hence it is a significant
platform for our future career.

5.2 Lesson Learnt

Practice makes a human practical and perfect. The eight weeks internship period in EBL has
taught me many lessons. I have learnt different skill and obtained a variety of knowledge during
my internship period. Internship for 8 weeks really taught us many things which have been listed
below:
Learned to tackle the various problems of the customer.
Learned to prepare and issue cheque books and activate the debit card.
Learned to use the office equipment like photocopy, faxes, cheque writer, printer etc.
Learned about general banking practices and corporate culture.
Learned to be self confidence to contact with the customer and make them feel comfortable in
every way.
Learned to make effective communication skill for quick and efficient service.
Learned to understand different types of stamps that were in use. They were so called crossed
stamp, banks stamp, endorse stamp and paid stamp.
It was the great chance to be familiar with the use of Finnacle Software that helped a lot in
maintaining the proper balance in the overall activities of the bank. In case if it failures, the
whole activities of the bank comes into halt creating the huge loss to the bank.
Thus, I want to conclude that throughout the internship period I learnt and develop to use
theoretical knowledge in the practical business world. Hence, internship in EBL not only gives
an insight to learn about how the bank performs interbank transactions in Nepal, but also boosts
our future prospects in the banking sector as well.

BIBLIOGRAPHY
Kolb, R.W. & Rodriguez, R.J. (2007). Financial Institutions and Markets.
Newyork: Blackwell.
Manadhar, K.D. &Pokhrel, S.B. (2009). Marketing Financial Services. Kathmandu:
Asmita Publication.
Shrestha, M.K. &Bhandari, D.B. (2008). Financial markets and Institutions.Kathmandu:
Asmita Publication.
Thapa, K. &Parajuli, B. (2010).Financial Institutions and Markets.
Publication.

Kathmandu: Januka

Shrestha,Sarada (2011) Report on clearing department, Karhmandu: An unpublished intern

report submitted to FOM, TU.

Websites
www.nrb.org.np (4thsept, 2012)
www.everestbankltd.com (4thsept, 2012)