Internship RBB
Internship RBB
Internship RBB
INTERNSHIP REPORT
AT
RASTRIYA BANIJYA BANK LIMITED
BALAJU BRANCH, KATHMANDU
By
Nisha Devkota
Student's Name
At
Trinity International
Name College
of your College
Tribhuvan University
Kathmandu
August 2023
i
INFORMATION SHEET
ii
STUDENT’S DECLARATION
..................
Nisha Devkota
Name of student
28th August,2023
iii
LETTER OF RECOMMENDATION
This is to certify that the ‘Internship Report of Rastriya Banijya Bank Limited,
Balaju Branch’ submitted by Ms. Nisha
Name Devkota for the partial fulfillment of
of Student
the requirements for the degree embodies the Bonafede work done by her under
my supervision. I hereby recommend this Internship Report for final
examination by the research committee of Trinity International College,
Tribhuwan University, in fulfillment of the requirements for the degree of
Bachelor of Business Management.
…………………..
Sunit AdhikariName
Supervisor's
Internship supervisor
iv
APPROVAL SHEET
…………………….
…………………….
v
INTERNSHIP CERTIFICATE
vi
ACKNOWLEDGMENT
This Internship Report is prepared for the partial fulfillment of the requirement for the
degree of Bachelor of Business Administration offered by Tribhuvan University, based on
activities performed and experience gained during the internship period. It would not have
been possible without the generous support and assistance of many people. Therefore, I
would like to acknowledge my gratitude to each one of them. I would also like to express
my sincere gratitude to the college administration for providing us with the infrastructure
and other resources needed for the accomplishment of this report. Similarly, I wish to
express my deep sincere thanks to Supervisor's
Sunit Adhikari
Name for giving me the responsibility to
prepare this report along with his guidance, valuable advice, support, and inspiration.
Heartfelt thank you so much for your favor and support.
Chapagain
............... and Meera Shrestha for proper guidance, direction, encouragement, and
.....................
suggestions despite their busy workload and busy schedule. My gratitude also extends to
my seniors, friends, interns whom I worked with, and well-wishers for their support,
insightful feedback, understanding, and encouragement when needed in the completion of
this report. I would like to take accountability for any mistakes that may have occurred in
the report.
Nisha Devkota
Name of Student
28th august 2023
vii
TABLE OF CONTENT
LETTER OF RECOMMENDATION.......................................................................................... iv
APPROVAL SHEET...................................................................................................................... v
INTERNSHIP CERTIFICATE..................................................................................................... vi
ACKNOWLEDGMENT ..............................................................................................................vii
LIST OF TABLES........................................................................................................................xii
CHAPTER 1 ................................................................................................................................... 1
INTRODUCTION .......................................................................................................................... 1
CHAPTER 2 ................................................................................................................................... 6
CHAPTER-3 ................................................................................................................................. 11
ix
3.6.12 POS Service ............................................................................................................... 22
CHAPTER 4 ................................................................................................................................. 24
4.3 Activities Performed in the Electronic Cheque Clearing Department (ECC) ................ 30
x
4.5.5 Problem related to communication. ............................................................................ 34
CHAPTER 5 ................................................................................................................................. 36
CONCLUSION ............................................................................................................................. 36
5.1.4 Gained communication and negotiation skills in the professional field. ................. 37
REFERENCE ................................................................................................................................ 41
xi
LIST OF TABLES
xii
LIST OF FIGURES
xiii
LIST OF ABBREVIATIONS
% : Percent
AD : Anno Domini
DP : Depository Participant
ID : Identity Document
LC : Letter of Credit
xiv
NRB : Nepal Rastra Bank
TU : Tribhuvan University
xv
CHAPTER 1
INTRODUCTION
1.1 Background
Tribhuvan University, mostly referred to as TU, is a renowned academy that has been
providing quality education to students since 1959. The university is profoundly named after
one of the greatest kings in history, King Tribhuvan, and is one of the oldest and largest
universities in Nepal and is owned by the state. In the past, TU only had its programs on
constituent campuses. However, the growing number of students and the increasing demand
for quality education from the students led TU to affiliate with private colleges and has been
ranked as top 800-1000 universities in the world as per the Times Higher Education World
University ranking in 2021 with the various faculties it has been providing. TU has provided
undergraduate courses, postgraduate courses, M. Phil, and Ph.D.
Furthermore, the national university has four faculties operated by the dean which are: the
faculty of management, the faculty of the law, the faculty of humanities and social science,
and the faculty of education. The additional five technical faculties provided by Tu are the
Institution of Agriculture and Animal Science (IAAS), the Institution of Engineering (IOE),
the Institution of Forestry (IOF), the Institute of Medicine (IOM), and the Institute of Science
and Technology (IOST). Among all these faculties offered by TU, one of the biggest grosses
for TU is the Faculty of Management (FOM). The design and syllabus of the Faculty of
Management provided by TU aims to provide better opportunities to a student in various
sectors as the course is designed in a way that a student can choose from their field of interest
can be an entrepreneur a banker or a digital creator for marketing, and so on. Also, the course
has an essence that the student pursuing the education can match the professionalism in the
global market as well. The various courses provided by TU for undergraduates under the FOM
are BBA, BBM, BBS, BIM, BTTM, BHM, and BPA. Likewise, in postgraduate TU is running
programs for further enhancement of students which are MBA, MBM, MFC, MPA, MBS,
MTTM, MHM, MBA-IT, and MBA-GLM. All the above programs are run for 4 years and are
of semester system however, BBS is run year-wise.
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In this way, FOM aims to provide insight into the working mechanism that goes into the real
working environment and what should be done to enhance the overall productivity in an
industry or in a home, the economy, and so on. Also, this program was developed to enhance
students’ critical thinking skills, leadership skills, communication and networking, effective
management, etc. Among other programs in FOM, BBM is a newly launched program that is
offered by TU which was started in 2013 by providing affiliation to six colleges outside the
valley. However, in 2014 TU affiliated two colleges inside the valley which are Nepal
Commerce Campus (NCC), and Saraswati Multiple Campus (SMC). Like the other programs
under undergraduates provided by TU, BBM is also a 4years course and is semester-wise. The
working hours for each subject are 48 hours. Similarly, the total credit hours are 120, where
the business tool course is 36 credit hours, business foundation courses are 60 hours, focus
area courses are of 15hours, and elective courses are of 9hours.
In recent times many private and public colleges have been affiliated with TU to run the BBM
program. Therefore, the four-year BBM program at Trinity International College, Dillibazar,
Kathmandu-Nepal with affiliation to TU has been running this program since 2018. The
institution has been following the standard format listed by TU. Like every college running
the BBM program Trinity International College also has been following the standard format
to take out its activity for the goodwill of the students. As for the completion of this degree,
the students have required an 8-week internship in the last semester.
An internship provides an environment for professional learning experiences and gives
students the field of study in which they have an interest. The opportunity to have an internship
as an academic requirement in the BBM course has created a platform for the students to
implement theoretical knowledge in an organization. The whole course is designed in a way
that the student would have a choice while specializing in their field of study i.e., the option
of choosing among Entrepreneur, Marketing, Banking, and Insurance. The course has
provided the students with a wide variety of industries and organizations to choose from
according to their specialized course of study.
For the accomplishment of the partial fulfillment of this degree, the internship report that is to
be carried out is done on Rastriya Banijya Bank (RBB), which covers the overall description
of work done and the observation made while doing the internship in various departments of
the bank. This report signifies the internship done in Rastriya Banijya Bank at Balaju for 8
2
weeks, which started from 14/11/2079 to 14/01/2080. As an intern, it was a privilege to work
in various departments such as Customer Service Desk (CSD), Electronic Cheque Clearing
(ECC), and Administration.
1.2 Objectives
The sole purpose of the internship is to provide practical exposure to the student and to
establish the basic discipline and professionalism that is required in a workplace. Furthermore,
the internship provides a clear path for the student to map out their career interests while being
in an active working environment. Supposedly, the course design of BBM includes the 8-week
internship compulsory for the students, where students are allowed to choose among various
industries.
Additionally, the objective of having an internship at a bank was mostly to have a better
understanding of the banking business and its accessibility in Nepal, and overall, its role in
the development of social as well as economic activities. Besides that, about the innovative
products the bank provides to its customers. However, this report covers some specific targets
of having an internship at RBB. Some of them are as follows:
a) Foremost, to be able to know about the banking process, rules, and procedures that are
followed by them under the central bank (NRB).
b) To imply theoretical knowledge in practical life.
c) To know about the risks associated with the banking business.
d) To identify the different banking products regarding the department.
e) To improve communication and negotiation skills.
f) To be familiar with the work culture and working conditions.
1.3 Methodology
For carrying out any field of study there is a requirement for a technique, process, procedures,
and so on for its constructive outcome. As a result, the methodology is the branch of any study
which is also the case for the internship done in RBB. The methodologies applied while doing
an internship are qualitative and quantitative methods. The qualitative method includes
observation and necessary personal questions regarding the problems with the respective
department staff. Also, an active involvement with the organizational software and systems
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and an active trial and error method application. The quantitative methods applied in this
report are journals, official websites of RBB, annual reports, and so on.
To approach the branch, the necessary procedures and documents that were required were
submitted to the head office in the Human Resources Department (HRD) such as a
recommendation letter from the college, Curriculum Vitae (CV), and a letter of interest. After
1.4the submission, the documents were analyzed by the respective Human Resource
Department at the head office. Then an appointment letter was duly provided to me, and
subsequently, I was selected as an intern at the Balaju branch. Accordingly, I started my
internship from 14/11/2079 to 14/01/2080.
1.4.1 Placement
Throughout the internship period, I was allowed to explore the branch enough as my fellow
interns were. Interns were assigned to various departments such as the Customer Service
Department (CSD), and administration where mostly interns were placed in the pension
department and Electronic Cheque Clearance (ECC). All the activities conducted by the
interns were closely supervised by each department head. Under the bank’s requirements and
the way of placing interns in the necessary departments, I was also given a chance to work in
those departments with the necessary period to comprehend the working mechanism of that
department.
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Furthermore, throughout the course of the internship, I had the opportunity to work in various
departments and actively participate in various activities. The assessment criteria for the bank
to evaluate interns covered things like behavior, punctuality, passion for completing work,
sincerity, behavior, and the effort made to understand every aspect of banking operations.
Also, a comprehensive overview of the department assignments and the related lengths during
my internship period is shown below.
Moreover, in my internship duration, I worked in CSD firstly, from 26 th Feb to 7th April, after
that, I was shifted to ECC where I performed my activities for 11 days with the assistance of
my superiors. Lastly, I was provided with the opportunity to work in the pension department
where I worked for 5days.
A study's limitations include any restrictions, shortfalls, or flaws that could have an impact on
the depth, reliability, or applicability of the findings. As with any area of study consisting of
limitations, the internship learning period also has certain limitations. Some of them are:
• To avoid exposing interns to the more challenging and strategic components of the job, regular
or low-level activities may be allocated to them.
• Limited time frame of 8 weeks to learn about the banking operations.
• Very few details and information about the bank due to its confidentiality and privacy.
• There were few opportunities for interns to interact with senior staff members or develop a
career network.
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CHAPTER 2
INTRODUCTION TO BANKING INDUSTRY
2.1 Background
A bank is a licensed financial institution that is known for accepting deposits and converting
them into various kinds of loans. Despite just accepting and converting the money into bank
also provides various facilities to its consumers such as certificates of deposits (CDs), locker,
bonds, securities, foreign exchange, and so on. Furthermore, banks are money multipliers as
they make money out of money. Every institution is responsible for creating order in society
while operating its activities for social and economic sustainability. To govern the order of
such an institution, a legal body called the government creates law and order. Therefore,
banking industries are also regulated by the government. In all countries, banks are regulated
by central banks which provide the required monetary and foreign exchange policies and
necessary day-to-day operation regularities, and so on, which maintains the stability in market
prices to currency notes to banks stability (i.e., prevents banks from going into liquidation.)
Moreover, banking is not a modern concept, it has been in existence since the 1st century. In
other words, banks had come into the knowledge when the barter system started as the
exchanging of goods for goods however, it started to become problematic as people started to
travel from one place to another in search of new markets. As a result, it started the existence
of various kinds of coins, however, it didn’t create a place for safekeeping for those wealthy
people in Rome. Then they started to safely keep their money in temples in the hands of priests
and temple workers as they were supposed to be loyal people. Additionally, history suggests
that Greece, Rome, Egypt, and Babylon, these big cities were loaned money too by temples.
Therefore, historical records indicate that temples were functioning as financial institutions.
Subsequently, wealthy merchants also lent money to the people in need and charged certain
interest also, they used to keep surplus money of the general people and refund those in case
of need. In Europe, they were called Medici, Bengkuci, Piti, Missouri and in the Indian
subcontinent Seth, Multani, and so on. However, the modern banking system started in Venice,
Italy in 1157 which was called the Bank of Venice. This was pursued with the opening of the
Bank of Barcelona in 1401AD, the Bank of Amsterdam in 1609AD, the Bank of Hamburg in
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1609AD, Bank of England in 1694AD which played an important role in the overall
advancement of the banking system over the globe.
In recent times, banks are not only represented as collecting deposits and lending them to
people in need in the form of loans. Now, banks have been developed as the essential service
provider to their customers. Additionally, the modern bank has been providing innovative
products such as Internet banking, mobile banking, ATMs, Debit cards, Credit cards, and so
on to create a convenient way for its customers to interact with the banking facilities without
bearing any additional financial and psychological costs.
Historically, Nepal reaches far back to the 30 th century BC, however, Nepal was a closed
economy until the 1950s with limited foreign trade and no international banking. Despite this,
the banking development in Nepal dates back to the year 1930BS. Furthermore, the banking
functionality can be seen in Nepal from the Malla regime, during that time there used to be a
community called Tankdhari that used to lend a certain amount of loan to needy people. The
kings that ruled at that time also contributed to the evolution of modern banking. King Prithvi
Narayan Shah established Koishi Tosha Khana which was responsible for managing the
financial transactions of the regime. Throughout the reign of the Kings, there was a certain
degree of incorporation of institutional actors such as Chandra Shamsher who established
‘Satahikhana’ under ‘Mulukikhana’ for the facilitation of currency exchange between the
Nepalese rupee and Indian rupee.
Furthermore, Ranodip Singh established Tejarath Adda whose sole aim was to provide credit
facilities to people at a concessional rate of interest. However, this institution was not allowed
to take public deposits and provide credit to the public. The fund was provided by the
government for credit to their staff and landlords only. The Tejarath Adda, however, was not
fully considered to function as a banking institution because it was not accepting deposits or
providing loans to the public (i.e., only serving the rich.). Therefore, it was not a bank in
essence. However, the modern banking evolution started from 1994BS with the establishment
of the first commercial bank named Nepal Bank Limited, which took over the responsibilities
and functions of Tejarath Adda. Nepal Bank Limited was established as a semi-government
bank with metallic coins worth NRS 10 million. Despite that banknotes were introduced in
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2003 BS by the treasury ‘Sadar Muluki Khana’ where the notes were signed by ‘Khanjanchi’
the head treasurer. The first Nepalese currency notes were of 1,5,10 and 100 denominations.
In addition to filling the deficiencies and inadequacies of all the above institutions in 2012
Nepal Rastra Bank Act was formulated for a better banking system and the economic and
financial development of Nepal. In 2013 NRB was established as the central bank of Nepal.
Since 2024 BS, the government has owned 100% of the banking industry in Nepal, with Nepal
Bank Limited (NBL), Nepal Rastra Bank (NRB), Rastriya Banijya Bank (RBB), and
Agriculture Development Bank (ADBL) serving as its cornerstones. However, the first
development bank was established as the Nepal Industrial Development Bank. To operate and
govern all commercial banks, the Commercial Banking Act 1975 was passed.
After liberalization in 2040BS Nepal adopted a free economy, which led to the establishment
of private banking such as Arab Bank Limited,2041BS, which is now known as Nabil Bank,
these commercial banks have significantly influenced the development of banking habits
among the populace, expanding the business community, and the government in numerous
ways. Recently, Nepal Rastra Bank decided to merge with other financial institutions. As a
result, financial institutions have merged to form one from two, sometimes even one from
three, and several more are in the process of doing the same. Even though they account for
more than 60% of the Nepalese economy, banks and financial institutions haven't developed
to the country's satisfaction in the banking sector more than others.
The banking system now has been classified as providing a systematic framework for
understanding, proper regulation, and supervision, and managing the diverse range of banks
and financial institutions. The basis for classification is to enable an effective risk management
strategy, for ensuring consumer protection, and ultimately contribute towards the stability and
efficiency of the financial system. In general, banks are classified into major 4 types under the
supervision of the central bank (i.e., NRB) as per the minimum capital requirement.
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2.3.1 Commercial Bank
A commercial bank is a type of financial institution authorized to grant loans and accept
deposits into checking and savings accounts. As in every country they are regulated by the
central bank, In Nepal the authoritative body i.e., the central bank is NRB which provides
licenses to the promoters for the commencement of the bank.
In other words, commercial banks provide the public, including private individuals and small
and medium-sized businesses, with essential banking services. Banks generate revenue by
charging for services and other costs. Overdraft costs, fees for safe deposit boxes, late fees,
etc. are all dependent on the items offered. In addition to interest on loans, some loans can
include other costs.
Banks employ money from customer deposits for their loan-granting operations to generate
revenue. When they lend money, they charge higher interest rates, while when they receive
deposits from consumers, they charge comparatively lower interest rates. Therefore, the main
function of commercial banks is to accept deposits, grant loans, act as a guarantor, engage in
foreign exchange, provide utility facilities for their consumers, and so on.
Commercial banks in Nepal came into existence with the establishment of Nepal Bank
Limited in 1937, which brought the wave and chances for other banks to perform as
commercial banks in the economy such as Rastriya Banijya Bank, along with many other
banks to date. With the ongoing crisis and the rule passed by the NRB, the merger and
acquisition of banks have resulted in a lower number of commercial banks to date. According
to NRB’s report for 2022/23, there are currently 21 in Nepal.
9
NRB specifies. There are now 17 development banks operating in Nepal, according to the
Nepal Rastra Bank's report for mid-July 2022 (Nepal Rastra Bank, 2022/23).
According to NRB guidelines, they can raise money by issuing debt or equity as well as loans
and grants from domestic and international banks. According to recent data (Nepal Rastra
Bank, 2022–23), there are 65 microfinance institutions in Nepal. Sana Kishan Vikas Bank,
Nepal Grameen Bikash Bank Limited, Nirdhan Utthan Bank Limited, and others are a few of
those raising people's standards of living.
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CHAPTER-3
INTRODUCTION TO RASTRIYA BANIJYA BANK
3.1 Background
Rastriya Banijya Bank (RBB) is a fully owned government bank and one of the pioneer banks
with the commencement of its activities on January 23rd, 1996 (10th Magh, 2022). The bank
operated under Rashtriya Banjiya Bank Act,2021, and Commercial Bank Act,2031 until it was
re-registered as a public limited company on 6 th Baishak 2063. Now, the bank performs its
activities as per the provision of the Bank and Financial Institutions Act 2073(2017) and is
classified as an A-class financial institution that is licensed by Nepal Rastra Bank.
Furthermore, in the past, RBBL went through several demanding business years and wrestled
with existential issues. However, the Bank successfully carried out a restructuring plan after
learning from the unfortunate occurrences and yearning for a better future. As a result, it is
currently one of the most popular banks in the nation, with the biggest number of clients in all
77 districts and 7 provinces. At present, RBB offers a wide range of banking services to a
diverse customer base including individuals, institutional customers, government agencies,
and business communities. As per Wikipedia, 2023, RBB has a workforce of 3000+
employees, The bank has established a wide presence throughout the country through its 263
branches,93 branchless banking outlets, and 204 ATMs.
In addition, the bank has developed correspondent relationships with the biggest foreign banks
all over the world, enabling SWIFT trade financing, personal cash transfers, and inter-bank
fund transfers. To develop the remittance industry, RBB also works with Western Union and
International Money Express, two major person-to-person fund transfer networks.
Additionally, through its promoter role, RBB, the second-largest commercial bank in the
nation, has significantly contributed to the growth of the financial industry, including banks
and insurance businesses.
RBBL is a pillar in Nepal's financial system because of its high public reputation, which is
demonstrated by its sizable deposit base and the rising demand for branch growth. The bank
remains entirely committed to making future contributions that will best aid the nation's and
its citizens' socioeconomic growth. Being the most trusted bank in the nation is a result of the
11
unwavering faith and goodwill shown by customers, as well as the government's, well-
wishers', and general public's continuing support.
Vision in any business represents an aspiration to what to become in the future. Furthermore,
it describes what a company desires to achieve in the long term while outlining its strategic
direction and guidelines for its efforts and resources toward achieving the goal. However,
mission refers to the unique purpose of a company and why it is apart from its competitors in
terms of products, markets, technology, and so on. Briefly, vision and mission are major
guidelines that help an organization to achieve its objectives. The vision and mission of RBB
are also a guideline for the bank to operate accordingly to it for reducing the chances of being
out of the market, as it defines why the organization exists and does what.
➢ Vision
The vision of RBB is to be the most credible bank for one and all and to always contribute
towards the Nation’s prosperity.
➢ Mission
The missions of RBB are:
1. To enhance the quality of life of all Nepalese people by reducing the barriers related to
financial access.
2. To ensure safety, innovation, and affordable financial services with vast networks of efficient
centers, and socially responsible business processes.
3. To ensure the staff are empathetic towards the customer’s needs.
In conclusion like every financial institution, RBB’s vision and mission are directed towards
providing financial services to its targeted customer in a reasonable and deriving customer
with a wonderful experience to ultimately have a competitive edge in the market.
Like every financial institution, RBB’s objectives are also based on the economic development
of the nation through its product and development as it supports at the individual level (i.e.,
saving habits) to big projects, construction, hydropower, agricultural sector, and so on.
However, some of the major objectives of RBB are:
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1. To focus on providing innovative financial services.
2. To increase the capital base of the bank by meeting the minimum capital requirement.
3. To grow the business and increase its market share.
4. To enhance operational efficiency.
5. To increase a sustainable profit.
6. To focus on the empowerment of the deprived class.
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Figure 3.4 Organizational Structure of RBB
As seen in the above figure RBB’s structure is comprised of boards of directors who lie on the
top of the power structure. The structure consists of seven members of the board including the
chairman. Since RBB is fully owned by the government and the government solely nominates
all board members including the chairman. However, executive power is vested in the hands
of the Chief Executive Officer (CEO). The CEO is appointed by the Board of Directors
(BODs), where the CEO of RBB is Kiran Kumar Shrestha, who is followed by the General
Manager (GM), Deputy Manager (DGM), and other departments.
Ownership structure refers to who legally controls the business, it gives the owner the right to
make certain business decisions. In other words, ownership structure refers to the composition
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of the owner’s capital in the share capital. Therefore, the ownership structure of RBB is as
follows:
Particulars % of holdings
Government 100
As we’re aware, every commercial bank is composed of various products and services that it
offers to its targeted customer which includes deposits, loans, remittances, digital services,
and so on. Furthermore, RBB has added various new services to draw clients in response to
the changing market and escalating competition. By providing a wide variety of services,
RBBL aims to make banking transactions for its clients simpler. The bank cares about its
clients, and by offering a variety of services, it tries to suit their needs. The following are some
of the goods and services provided by RBB which are classified into deposits, loans, digital
banking, ATMs, and other services which are further explained:
3.6.1 Deposits
RBB, as another commercial bank in the market, accepts deposits from the public. Accepting
deposits and creating deposit accounts are the general primary functions of a bank which is
outlined by the Bank and Financial Act (BAFIA) 2073. In addition, RBB also offers a wide
range of deposit products and services that are customized as per the different customer
segments. Some of the key deposit services provided by RBB are:
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forms of withdrawal for depositors. In terms of the number of withdrawals and the number of
deposits made within a certain time frame, RBBL places various restrictions on deposits. The
interest rate is low in comparison to fixed and revolving deposits, and it varies depending on
the state of the market.
The interest rate as per my internship period on the savings account was 6.45 percent.
Furthermore, to draw in deposits, RBBL provides a range of services to its clients, including
ATM/debit cards, insurance, mobile banking, and e-banking. The bank offers several different
savings account programs, such as the Mahalaxmi Savings Account, Chuna Muna Savings
Account, Teachers Savings Account, RBB Pension, Nepal Government Pension Account,
Nepal Police Savings Account, APF Savings Account, Student Super Savings Account, and
others. Pension, Nepal Police Savings Account, APF Savings Account, Student Super Savings
Account, and so forth.
RBB’s interest rate on fixed deposits (FD) was 11% per year when I started my internship
(i.e., 2079B.S as per 2080 it is 9.99%) where the minimum balance requirement for FD was
NRS. 25000 and the minimum time frame was 3 months to 5 years. Further, withdrawals from
FDs before maturity are subject to a penalty interest charge; interest is paid every quarter; tax
is withheld at source from interest on savings deposits by the Income Tax Act; the nomination
is possible; and strict secrecy is guaranteed. Individuals, businesses operating as proprietors,
partnerships, and corporations typically open fixed deposits.
16
holders of current accounts will also be given, by the agreement, the ability to collect checks
and buy bills.
17
B. Non-Funded Loan: Such loans are the off-balance sheet exposure, RBB provides this facility
to its wholesale customers, and some of them are:
• Letter of Credit/LC: LC is provided to businesses to facilitate the import business in general,
where the bank is liable if the importer defaults on their liability.
• Bank Guarantee: RBB also provides bank guarantee facilities such as Bid bonds, advance
payment guarantees, financial guarantees, and counter guarantees on behalf of the customer
for facilitating trade business.
• Agronomy: RBB provides the whole year’s credit needs for the cropping pattern, this
approach facilitates the clients with the provision of renewal of credit service at the start of
the year. Furthermore, RBB provides credit services to processors, wholesalers, and retailers
as well as seed producers.
• Livestock: RBB facilitates its services to support the production of milk and milk products,
poultry farming, pig farming, goat rearing, and so on, where credit supports working capital
as well as capital expenditure.
• Horticulture: The bank has extended its credit support to the production, processing, and
marketing of horticulture cultivation and management such as for tea, mango, orange, and so
on.
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• Others: RBB not only supports the above agricultural sector but also facilitates its credit
support to apiculture/beekeeping as the sector has huge potential to thrive because different
species of honey-producing bees are found in Nepal, and other sectors are floriculture and fish
farming are also provided with credit facilities.
Another remittance service provided by RBB is RBB Remit Online which is a web-based
remittance system that allows money to be sent to Nepal from worldwide, payment can be
collected from more than 258 branch offices of the RBB. Furthermore, RBB is associated with
foreign agencies for direct remittance through RBB Remit.
In addition, one can request a remit where the money can be credited to their account and the
transactions can be done easily through mobile banking, or other facilities under SWIFT.
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In addition, the bank charges some fees yearly for Mero Share service which is Rs50, and C-
ASBA which is Rs100. Not only does this bank itself apply for the IPOs to those who are not
competent to excess the service using the internet.
Furthermore, the agreement makes the economically weak but meritorious students with the
scholarship opportunity who are currently studying in grades 10 and 12. Therefore, those grade
10 and 12 students will be selected based on Proxy Means Testing and will be provided
scholarships to study bachelor’s level.
On the contrary, RBB provides a special type of account for those students and facilitates the
service of legitimate transactions, where the requirement for account opening is simple and
hassle-free. Some of the requirements for account opening in RBB for SFAFDB are:
The bank has concluded that this program is expected to be beneficial to altogether 7,800
students.
Mostly, trade finance is the financial tool used by businesses to support international trade and
commerce. Trade finance makes it easier for importers and exporters to transact business
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through trade which is made accessible by banks and financial institutions. RBB as a financial
institution also provides trade financing to businesses that import goods and services.
Therefore, RBB is offering various products related to international trade suitable to one’s
needs. Some of the major products and services that are provided by RBB are Letters of Credit
(LC), bonds/guarantees, counter guarantees, and short-term trade finance(bills).
It facilitates transactions such as fund transfers, connect IPS Interbank Fund Transfer, Credit
card payments, landline bill payments, top-ups, and so on. Furthermore, customers with
Internet banking services can request cheque stoppage, and checkbooks too. Other general
inquiries can be done too such as general information, full information, and mini or full
statements.
1. Debit Card: Simply, is a rectangular piece of metal that is attached to a chip that is linked to
the credential of the user. It is the facility provided by banks to ease the life of the customer
and reduce their effort in being in line to withdraw money. With the growing technology, the
need for innovative products in the banking industry goes too, so such a card could be said as
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an innovative product. RBB issues chip-based visa debit cards which can be used at ATMs,
and Point of sale (POS) for payment of goods and services. The Visa Debit card is also
categorized as:
• Visa Domestic: It is valid in Nepal, India, and Bhutan, and the joining fee for the clients is
NPR. 250.
• Visa International: It is valid worldwide, whereas the joining fee includes U00000.
• Visa Travel Quota: Valid worldwide and issued against foreign currency facility.
2. Credit Card: RBB offers credit card facilities to customers, which is a VISA credit card that
is valid in Nepal, India, and Bhutan. It is accepted both in ATMs and POS terminals. RBB
provides a cash withdrawal facility of up to 10% of the credit limit, interest fee period is a
maximum of up to 45 days on any purchase made by the cardholder. The card validation lasts
up to 5 years. The credit limit for the credit card is NPR 20000/- to NPR 500000/-, and the
billing date for the credit is the 23rd of each English Calander.
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3.6.13 SWIFT
Society for Worldwide Interbank Financial Telecommunications (SWIFT) is a vast messaging
network used by financial institutions to send and receive money transfer instructions quickly,
accurately, and securely. In general, it is the same process as sending a wire transfer. Through
a member-owned cooperative called SWIFT, the financial sector may conduct business with
confidence, speed, and predictability. More than 10,000 businesses and financial institutions
trust SWIFT to exchange millions of standardized financial communications daily as of June
3, 2012, across 210 nations.
As an active member of SWIFT, RBB offers money transfer services to its customers. The
person trying to send money through SWIFT to the bank must have a 12-digit account number
with RBB. Generally, the person should have an account in the bank or should know the
account number, account holder’s name, and bank branch to send the money. The SWIFT code
of RBB is RBBANPKA.
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CHAPTER 4
ANALYSIS OF ACTIVITIES PERFORMED
4.1 Background
Banks are composed of different departments withholding roles, responsibilities, and duties
among each department which differ from each other, where each department is so important
for carrying out day-to-day activities. As an intern, places in the bank have made me realize
how every aspect of a system is an important thing to be considered as a manager or as an
owner of any institution. As prescribed by the faculty of management of Trinity International
College I had to go through an 8-week internship period in Rastriya Banijya Bank Limited.
Working as an intern for 8weeks presented me with a valuable opportunity to gain in-depth
knowledge about the operations within the banking industry.
It allowed me to witness the day-to-day functioning of a bank and made me able to work in a
challenging environment within the banking operation. Like every other intern before me I
was provided a chance to work in CSD, Electronic Cheque Clearance (ECC), and pension
department whereby I was allowed to work in those departments as well. The intern supervisor
provided us with rotational opportunities so that we would not miss the chance to witness the
various operations carried out in those departments. Furthermore, the brief activities done by
me are elaborated below.
The customer service department (CSD), commonly referred to as the front desk, holds
significant importance and plays a huge role in attracting new customers and retaining existing
customers for any business. It is a crucial part of many businesses and organizations as it deals
with providing support, assistance, and information to customers regarding their products,
services, or inquiries. Therefore, banks’ image and reputation also heavily rely on the
performance of the CSD.
CSD is one of the rashly busy departments in the bank and it is the very place that makes an
early impression on the clients, Excellent customer service can improve the organization’s
ability to lure potential customers and have a significant impact on bank profitability.
Therefore, the success and failure of sustaining the market depends heavily upon CSD. So,
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the bank heavily emphasizes providing training and development programs for an employee
who carries out the function of CSD, we interns were also placed in the good hands of CSD
head Mira Shrestha who guided us throughout the work which was related to the CSD and
briefly provided the idea of how to interact and handle the situation in distress as well.
The work performed by CSD is account opening updates, closing accounts, issuing cheques,
providing statements, and so on. The various activities performed during the period of
internship while posted in CSD were account opening, account closing, looking into
customers’ queries about their account balance, and providing forms for extra facilities in new
account opening such as mobile banking, intern banking, ATM, and so on. The further
activities performed by the customer service department in RBB located in Kathmandu, Balaju
are shown below in the figure.
CSD function
Saving account
Providing information
Operations
Others information
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Figure 4.2.1 Specimen of account opening form for individual and joint
The customer had to fill up the form in written format along with the two recent passport-size
photos and a photocopy of the citizenship card along with the original card itself, and one
additional document such as a national ID card, electricity bill, water bill, voter id, password
and so on if the customer is willing to open an individual account. On the other hand, if he/she
wants to open a joint account then he/she must present a document stating what the
relationship between them is. Also, being a government-owned bank, it has a huge customer
base where retired pension holders were drawn to open the account where the same
requirement of the above individual was required in the pension account, and additionally, the
pension patta was required along with the letter from the authorized pension office. While
minor account opening procedures were also made familiar to us the additional document
required was the birth certificate of the individual along with the guardian citizenship card and
two photos. Therefore, the bank clients are of two types: individual and corporation, with the
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extra knowledge and risk involved in the corporate accounts we interns were not given a
chance to handle corporate account openings.
4.2.2KYC Update
An account holder cannot have access to their account if the account is not updated every 2
years. Part of my responsibility on it was to look into the system of the account holder and see
if the account was dormant, blocked, or not due to not updating an account, once I did that
and if the person is required to update their KYC then the necessary form to be filled was
handed over to them with necessary documents that are required to be attached on it, the
documents include two recent pictures, citizenship card, along with additional documents to
verify their exact location. Some of the times customers also visited to update their signature,
which was again done through the same procedure.
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customer requested the cheque but didn’t collect the cheque the same day, were also kept
securely on their behalf. Furthermore, the cheque was only issued to the customer who had
opened an account from the Balaju branch, and people outside the valley who wanted to issue
cheques were given but within a valley, the customer must visit the branch they had an account
on.
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were filled and documented in their place, and KYC updated for the day would be filled
accordingly to its place, and so on.
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4.2.9 Photocopy, Scanning, and Mailing Documents
The intern is required to photocopy and scan papers such as licenses, passports, and specimen
cards. To make it simple to retrieve the documents when needed, they are entered into the bank
system. A KYC update from a different branch may occasionally need to be scanned and
provided by email in PDF format.
ECC is an innovative interbank check-clearing system that has taken the place of manual
check-clearing in Nepal. The original paper checks are converted to scanned images before
being presented electronically through secured communication channels from the member in
which they are deposited to the member on which they are drawn. This solution is image-
based, cost-effective, and increases check trust while also allowing for quicker access to funds.
The multilateral net clearing position is calculated by ECC and sent to the Nepal Rastra Bank's
settlement system for the direct member's net clearing position to be settled. Nepal Clearing
House Limited houses the central system of the clearing process.
When placed in ECC, I was again provided with the necessary insight into what ECC is why
it is done, and how it is done by the supervisors, then made familiar with the software and
carried out the clearing processes. And record keeping is key for ECC as it involves higher
risk related to money and transactions which need to be done within time for the customers.
Also, for ECC the cheque that has been rejected should be handled with care and should be
kept separately to ensure that it won’t be lost i.e., it should be handled with care against various
reasons as a customer might come back to collect it.
RBB facilitated the interns with the opportunity to investigate the system and operate it as
well as to better understand how the clearing of the cheque works. There were two types of
clearing methods they are:
• Express Clearance: This operates till noon from Sunday to Monday, while on Fridays only
express clearance is done till noon, for which the bank charges 100rs per cheque.
• Normal/Regular Clearance: The cheque under it was cleared from 10 AM to 3 PM from
Sunday to Thursday, where no charge was deducted from any cheques.
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4.3.1 Cheque Entry in The System
I was primarily responsible for entering customer cheque details into the system, including the
necessary stamps and endorsement stamps and signatures. The bank staff provided me with
the necessary supervision and access to the system for this purpose, where for the company’s
cheque it was necessary to add the stamp of account payee, and for individuals with 10lakhs
and more than that also required account payee stamps which was the requirement for clearing
the cheque.
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4.4 Activities performed in the Administration Department
I had the chance to focus on the pension department while I was an intern in the administration
division. I was placed in the pension department and was made known about the sensitivity of
the work that goes into it, and how customers are present in the hope of collecting the money
the same day as they are there to renew the pattas. Morely, how the forms should be filled in
and in necessary situations how we intern had to fill it up on behalf of the customer, as age is
one of the restrictions for them which we should consider while being/ working in the pension
department. In the administration department, the following tasks were completed:
Every six months, pension pattas must be renewed. Therefore, providing the renewal form to
the pension holders is one of my main duties in this area. I am in the role of providing the
necessary assistance in filling out the form because many pension holders are elderly people
who could require it.
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Furthermore, customers who failed to renew their patta every six months faced the problem
of access to the pension amount i.e., withdrawal of it, where I was also responsible in that case
to release it from the system and printing out the amount that was frozen, and presenting the
print out to the head of the administration for releasing the amount, also I was told to make
the customer wait 15-20 minutes whose amount were frozen.
Every organization, from small businesses to huge commercial banks, faces difficulties and
problems. It is unavoidable to run into different issues and challenges while doing regular
operations in a bank. To handle and resolve these difficulties successfully and efficiently, it is
essential to use the proper managerial techniques. During my internship, I ran upon the
following issues, which I was able to solve:
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Department (CSD) officer faces. A customer's account can, for instance, be debited twice for
the same amount or an ATM might fail to dispense cash but still debit the account. The bank's
intranet system and services including E-banking, ATMs, and SMS banking may also
experience interruptions. The intern's job in these circumstances was to empathize with the
clients and provide them with potential solutions while striving to resolve the problem and
ensure client happiness.
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4.5.7 Problem-related to mistakes made by employees.
Employee errors in a bank can have very negative effects on both the bank and its clients.
These blunders might involve everything from transactional problems to improper handling
of private client information. Some errors on the part of employees can be transcription errors
for instance mistakes in transferring funds, deposits, or withdrawals, mistakes while data
entering for say mistakes in inputting customer information. However, by combining training,
operational development, technology adoption, and a dedication to offering outstanding
customer service, banks must act and prevent these errors. Additionally, banks should have a
defined strategy for dealing with and resolving errors when they do occur. This routine should
include expressing regret to impact clients, fixing errors as soon as they are discovered, and
taking action to avoid repeat errors in the future.
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CHAPTER 5
CONCLUSION
In terms of developing and enhancing a variety of interpersonal skills, analytical skills, and
management abilities, the eight-week internship proved to be extremely beneficial for the
intern. The intern succeeded in changing their attitude and behavior in day-to-day living in
addition to gaining exposure to the professional world. Along with learning about the banking
industry, the intern also developed important social skills, interacted with senior employees,
and helped other interns create a positive work atmosphere. The internship experience brought
home how important within the organization values like accountability, responsibility, and
punctuality are. Customer satisfaction and retention inside a business depend on treating them
with respect and promptly responding to their inquiries.
The intern was guided and supervised by experienced staff members during the entirety of the
program. I was given responsibilities in several departments, including CSD, ECC, and
Pension, where I acquired firsthand experience with operational processes. Furthermore, the
internship offered a few significant insights, which are summed up as follows:
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classroom is heavily used in real-world situations. It has aided in improved comprehension of
the issues and circumstances, and the solutions have been modified in line with the knowledge
learned in the classroom.
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5.1.6 Developed teamwork skills
Through my internship, I improved my knowledge of how cooperation can speed up and
optimize procedures while also establishing more solid interpersonal bonds between team
members. Working together gave me helpful insights into my skills and shortcomings,
allowing me to turn them into pillars of strength. Therefore, working with the seniors and with
fellow interns had a significant impact on my teamwork skills.
5.2 Conclusion
The main goal of an internship is to get professional experience and put what has been learned
thus far into practice. The primary reason the students chose RBBL was because of the bank's
strategy of giving interns the chance to learn about the workplace and become familiar with
how various divisions operate. For me, completing an internship was a success since it taught
me a lot about how banks operate. Students who have completed internships can attest that
RBB is one of Nepal's top banks and has been successful in building strong relationships with
both its clients and workers.
Furthermore, the bank is similarly dedicated to the nation's economic development at the same
time. The bank wants to improve the quality of life for Nepalese citizens everywhere in the
country. However, as an intern, time constraints were big difficulties, but it was a pleasant
experience to learn so much at RBB in such a short amount of time. The internship period
meant a great deal to me which taught me about the banking industry, especially RBB. Over
the entirety of the internship and the writing of this report. The internship turned out to be
quite advantageous for the intern in many ways. The internship gave me important insights
into banking operations and functions even though I had little prior understanding of the
banking sector. This report specifically helped me comprehend the many sorts of deposits that
RBB Bank offers.
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In addition, during the internship period, I learned how to interact with a variety of people,
communicate with senior staff, and interact with fellow interns to make the workplace more
upbeat, pleasant, and welcoming. Also, the supervisors were a great assistance in guiding me
through my internship program. Being an intern at RBB was a wonderful experience. The
working atmosphere was friendly. The RBB staff members interacted well with one another
and had healthy competitiveness and relationships. It was a pleasure to work with RBB's entire
crew because they were all completely professional while maintaining a family atmosphere.
Moreover, the internship also taught me numerous crucial interpersonal skills in addition to
financial expertise. I learned how to engage with others, communicate with senior staff, and
work together with other interns to create a more welcoming and pleasant work atmosphere.
The intern understood the importance of behavioral components inside the company, as
maintaining customers depends heavily on appropriate behavior and kindly answering their
questions. Likewise, the internship provided the interns with an opportunity to put their
academic understanding into practice. We had an impression that working in a bank was
straightforward at first, however, we became aware of how tough the task was after closer
inspection and conversations with personnel. Also, the bank staff had to keep to a tight
schedule from early in the morning until late in the afternoon, and any tasks involving currency
were to be carefully balanced before they could leave the bank's grounds. The difficulties of
the job were highlighted by the requirement that each transaction be reported to the corporate
headquarters and approved before personnel could be released from their duties.
Despite this, the internship experience allowed me to learn why RBB Bank is regarded as
having great customer service. It is one of the most promising banks and can grow its market
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share by correcting its flaws, aiming to raise client satisfaction, and constantly delivering high-
quality services.
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REFERENCE
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