AN INTERNSHIP REPORT ON CSD OF

NEPAL BANK LIMITED

(Kathmandu branch office)

Submitted By:
Dipendra Tamang
Atlantic International College
BBA 7th Semester
PU Registration number: 2016-2-03-2036
Exam Roll No: 17032325

Submitted To:
Office of the controller of examinations
Pokhara University
Kaski

In partial fulfillment of the requirements for the degree of

Bachelor in Business Administration (BBA)
Samakhusi, Kathmandu
March, 2020
 DECLARATION

I would like to declare that this project entitled to “An internship report on customer
service department (CSD)” of Nepal Bank Limited Head office is the result of my
own study carried out in the year 2076 and is for the sole purpose to submit to Faculty
of Management, Pokhara University is the work done in the form of partial fulfillment
of the requirement of Bachelor’s in Business Administration (BBA) under the
supervision of Mr. DhurbaSubedi. I hereby declare that this report has not been
previously submitted to any other University or any other institution for examination.

Dipendra Tamang

7th semester
 ACKNOWLEDGEMENT
This project report is submitted in partial fulfillment of the requirement for the degree
of “Bachelors in Business Administration (BBA)” under “Faculty of Management
(FOM)”, Pokhara University.
I am highly indebted to the Atlantic International College and Pokhara University for
providing me with the opportunity to show the skills I have learned during
thesedemanding college years.
It’s a pleasure to convey my heartiest gratitude and greeting to honorable supervisors
Sabina Khanal and other staffs of Nepal Bank. Their closeness, fun nature, co-
operation, kindness, and helping nature always motivated me in learning something in
different manner.
Finally, very special thanks go to my supervisor Mr.Dhurba Subedi who despite of his
busy schedule has provided me a lot of valuable suggestions andencouragement for
the preparation of this report. I would like to express my gratitude tomy friends for
their constant support and love.

Sincerely,
Dipendra Tamang
Table of Contents
DECLARATION.............................................................................................................2

ACKNOWLEDGEMENT...............................................................................................3

CHAPTER ONE: INTRODUCTION........................................................................1

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

1.2 Objectives of the Study...................................................................................2

1.2.1. Network Overview.......................................................................................2

1.3 Methodology of the study....................................................................................3

1.3.1 Sources of Data.............................................................................................3

1.3.2Organizational Selection................................................................................3

1.3.3 Placement......................................................................................................3

1.3.4 Duration.........................................................................................................4

1.3.5 Activities Performed in Bank........................................................................4

1.4 Limitation of the Study....................................................................................4

CHAPTER TWO: INTRODUCTION TO THE BANKING INDUSTRY.............5

2.1 Introduction to Bank............................................................................................5

2.2 History of Bank....................................................................................................6

2.3 History of Banking in Nepal................................................................................7

2.4 Present Scenario of Banking in Nepal..................................................................8

2.5 Commercial Bank............................................................................................9

2.5.1 Functions of Commercial Bank.....................................................................9

2.6 Profile of NBL....................................................................................................10

2.7 Mission, Vision and Objectives of NBL.......................................................10

2.8 Capital Structure of NBL...............................................................................11

2.9 Branches of NBL...........................................................................................12

2.10 Banking Services provided by NBL..........................................................12

2.10.1 Deposit......................................................................................................12
 2.10.2 Loan / Advances........................................................................................13

2.10.3 Other Services...........................................................................................14

CHAPTER THREE: ANALYSIS OF THE ACTIVITIES DONE AND

PROBLEM SOLVED................................................................................................17

3.1 Introduction of Customer Service Department of NBL................................17

3.2 Functions and Responsibilities of CSD of NBL............................................18

3.3 Activities Done in CSD.................................................................................19

3.3.1 Customer Counseling..................................................................................19

3.3.2 Account Opening........................................................................................19

3.3.3 Account Closing..........................................................................................22

3.3.4 Bank Statement Issuance.............................................................................23

3.3.5 Chequebook Issuance..................................................................................24

CHAPTER FOUR: CONCLUSION AND LESSON LEARNT............................25

4.1 Conclusions...................................................................................................25

4.2 Lesson Learnt................................................................................................26

BIBLIOGRAPHY.........................................................................................................27
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CHAPTER ONE
INTRODUCTION

1.1 Background

Being the student of Bachelor in Business Administration (BBA), it is intern’s

personality to be the part of internship program under this curriculum, which has
helped in acquiring the practical knowledge of general banking transactions. In order
to make BBA a complete package of progressive study, it has incorporated internship
program of 8 weeks to the intelligence and performance of BBA students. It helps in
developing competent, confident and skilled professionalism in students which will
strengthen student’s managerial, entrepreneurial and leadership capabilities in today’s
competitive globalized business world and help in broad understanding of
professionalism, integrity and business responsiveness. It also provides the platform
to apply the theoretical knowledge that was learnt in the college by exposing own self
in real working environments.For this purpose, Nepal Bank Limited, Kathmandu
branch has been chosen for internship. It was a wonderful experience to work as an
intern at Nepal Bank Limited.
NBL being the first bank of Nepal is a pioneer banking institution in Nepal. NBL,
through its extensive branch networks around the country, has been providing various
modern banking products and services to its customers.
The Customer service Department includes the service of opening and closing an
account, issuing cheque books, ATM card, balance inquiry, publishing account
statement etc. The Customer service Department is one of the important services of
NBL as it includes the direct interaction of bank with its customer. Thus, NBL has
given emphasis in its Customer Service Department as it is directly related with
customer satisfaction.
The remittance service mainly involves the transfer of funds from one place to
another in order to provide value to the customers. Presently NBL has used various
modern technologies for its remittance service e.g. SWIFT, Draft, TT and mail
Transfer, etc. NBL has established agency and correspondence relationship with
other financial institutions and service companies. NBL also has established
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relationship with Western Union Money Transfer, a worldwide money transfer

company, for providing remittance service to its customers.

1.2 Objectives of the Study

The general objective of this internship would be to gain a real time working
experience so that the intern acquires knowledge in a practically oriented manner.
This knowledge is different from the textbook knowledge because the theories in
textbooks are based on many assumptions, which are not levied in the practical
environment. It is a great opportunity to enhance and develop managerial knowledge
and interpersonal skills as well as incorporate the theoretical knowledge and abilities
to its best use for its practical implications. Some objectives of it are:
The general objectives of the internship are:
• To apply knowledge and theories to practical work
• To gain a professional experience as an employee and develop managerial
and interpersonal skill

The specific objectives are:

• To know how to deal with customers.
• To assist in opening accounts, handling customers and perform other
supporting activities.

1.2.1. Network Overview

The table shows the number of different branches of NBL located all over the
country.
Table 1: Number of Total Branches of NBL
Province Wise Branches No. of Branches
Province 1 30
Province 2 32
Province 3 48
Province 4 22
Province 5 29
Province 6 8
Province 7 7
Total Branches 176
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1.3Methodology of the study

This report is basically prepared as per the experience of work while doing the
Internship. The materials have also been prepared from staffs, customer, booklets,
Websites and published documents. So, this report contains primary as well as
Secondary data collected from all those resources. Selection, placement and duration
of the internship are mentioned underneath. All the information has been collected for
research and report preparation. To carry out these activities, intern interact with
differentauthentic sources and have valuable customer who used to come to the
organization.The main sources of this study are primary and secondary sources.

1.3.1Sources of Data

Primary sources: The information is collected by having informal discussions with

the bank personal. Information was also collected through observation of work done
by employees.
Secondary Sources: The information was collected from annual report of NBL,
website of NBL, various publications, journals, and newspapers etc.

1.3.2Organizational Selection
Selection of the good organization was very important for my internship as per our
course of BBA. Commercial banks are the appropriate organization where I could
tally my theoretical knowledge into practical implications. Thus, for selecting the
organization, internee curriculum vitae, citizenship and recommendation letter from
college are dropped in the various Banks. In this process Nepal Bank Limited,
Bhugolpark has accepted internee application for the internship and give the
opportunity to get familiar with the bank.

1.3.3 Placement

During the internship period, internee was placed in CSD of Nepal Bank Ltd,
Kathmandu branch. So with the reasonable guidance of the employees of NBL
internee started internship for eight weeks internship which really helped internee to
develop managerial and interpersonal skills. Internee was able to learn the bank
culture, working environment and working procedure of Nepal Bank Ltd, Kathmandu
Branch.
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Table 2: Weekly basis activities on internship

Departme 1st 2nd 3th 4th 5th 6th 7th 8th
nt
CSD
1.3.4 Duration

The duration of internship period has been defined for eight weeks. So internee have
completed two months in Nepal Bank Limited, Kathmandu branch.

1.3.5 Activities Performed in Bank

During the 8 weeks internship period, intern was placed in four different departments
as mentioned above. Intern got the opportunity to diagnoses all the general banking
procedures of NBL. Activities performed by intern during internship period are
summarized in the below table:

1 to 8 weeks Customer Service Department

To check the balance of the customer(ABBS also).
To counsel customers and solve their queries and problems.
To assist customers in account opening and closing procedures.
To issues cheque books.
To print out account statement of the customers.
To fill the deposit slips.

1.4 Limitation of the Study

While doing the internship in the bank there are certain limitation by which we can’t
able to get what our course wants. The limitations are as follows:

 The bank’s policy in keeping some matters confidential prevented from

analyzing the various critical facts and issues
 As the internship was to complete within the limited time period it
wasimpossible to have in depth study of all the activities of all the
departments.
 The bank's staffs were highly occupied by their work so they had little time to
interact with the intern.
 Most of the information is collected through personal experience and
observation so the overall information may not be included.
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CHAPTER TWO
INTRODUCTION TOTHE BANKING INDUSTRY

2.1 Introduction to Bank

The word “Bank” has been derived from the Latin word “bancus”, Italian word
“banca” or French word “banque” which all give the same meaning that is “bench”.
Since, people use to perform the monetary transaction by sitting on the ‘bench’ at
earlier time, the word ‘bank’ derived. Nowadays, banks are becoming so popular that
large number of financial transactions are performed daily such as, accepting deposits,
providing loans, providing securities, remittance facilities, taking guarantees,
formulating capital, making regional balance, etc. In short, Bank is an institution that
deals with money and credits. It accepts the deposit from the general public and
advances it to those who really do need it. So, bank is that financial institution
established to serve the people in financial and another technical sector.
Hence, bank is a financial institution whose major task is to collect unused money of
general public, investing it to the profitable sector from which bank can earn interest
and make availability of the money as the depositor wants to withdraw it.
Some of the Definitions of Banks by Scholars
Different scholars have defined bank in different ways. Some of the definitions are
given below:
According to Crowther
“Bank is an institution which collects money from those who have it to spare and who
are saving it out of their income and lends this money out to those who require it.”

According to Prof. Kinley

“Bank is an establishment, which wakes to individuals such as advances of money as
may be required and safety made to and to which individuals entrust money when and
required by them for use.”
According to Oxford Dictionary Bank
”Bank is an establishment for keeping money and valuable safety of money being
paid out on the customer order by means of checks.”
 6

To sum up, banks accumulates idle money from general public by providing attractive
sound interest rate in their deposits and disburse the collected deposits as loan to the
needed parties. Thus, bank acts as intermediaries channeling saving into investment
and consumption. Through them bank fulfill the investment requirement of the saver
with the end it needs of investors. In this way bank plays on imperative role in our
economy by providing effective service efficiently towards the attainment of
economic development.

2.2 History of Bank

Banking has crossed various phases to come to the modern form. The origin of the
banking can be traced out from the early times of human civilization. In the ancient
Rome, Greek and Mesopotamia, the practice of storing old mental and coins at safe
places and loaning out money for the both public and private purpose on which
charging interest was prevalent. In England, banking and its origin can be started with
goldsmith who adept the valuable thing of the public for the safe keeping at certain
commission (interest) and to be returned to those, the depositor wished. According to
Crowther, modern Banking has three ancestors.
 The Merchant
 The Goldsmith
 The Money Lender
As a public enterprise, first bank “Bank of Casa De San Giorgio” was established in
1148 A.D. In 1157 A.D., “Bank of Venice” was setup in Venice, Italy. Subsequently,
the “Bank of Barcelona” in 1401 A.D., “Bank of Genoa” in 1407, “Bank of
Amsterdam” in 1609, and “Bank of Hamburg” in 1610 A.D. were established. These
modern bank gradually replaced goldsmith, merchant and money lender. “Bank of
England” in 1694 A.D and “Bank of Hindustan” in 1770 A.D. were established in
England and India respectively as the first bank of it. But these banks were not
established according to the law. In 1833 A.D., Banking Act-1833 was introduced in
United Kingdom as it allowed opening joint stock company banks. There comes a
remarkable change in the process of establishing the banking institution. The idea of
establishing commercial banking rapidly spread all over the world one after the
foundation of this bank.
 7

2.3 History of Banking in Nepal

The history of banking in Nepal is believed to be started from the time of Prime
Minister Ranoddip Singh in 1877 A.D. He introduced many financial and economic
reforms. The Tejaratha Adda was established at that time and its basic purpose was to
provide credit facilities to the general public at a very concessional interest rate. The
Tejarath Adda disbursed credit to the people on the basis of collateral of gold and
silver. All employees of government were also eligible for this type of loan, which
was settled by deducting from their salary. Tejaratha Adda extended credit only but
did not accept deposits from the public.
But the real banking started with the establishment of Nepal bank limited in 1937 A.D
which was founded by JuddhaSumsher. It was the first bank of Nepal. Its main
function was to provide loans and accept deposits. Later Nepal Rastra Bank was
established as a central bank in 1956A.D. The bank was completely government
ownership bank and it also started to issues notes since 1959A.D. Then after, several
commercial banks have been established in the recent years.
The history of banking dates to the sixteenth century. However in Nepal formal
banking system was only introduced only in 1937A.D. with the establishment of
Nepal bank limited (NBL), which was regarded as pioneer institution in modern
banking system and served as a role financial institution of the country for nearly two
decades. Prior to establishment of this bank, the banking need of people were fulfilled
to certain extent only by organized financial institution the “Tejaratha Adda”.
However the services it offered were not sufficient. Actually, the formation of high
committee board “UdyhogParisad” was indeed a landmark in opening of new avenue
in the field of banking industries and commerce. Accordingly, NBL was established
on November 1937 under Nepal Bank Act as a joint venture between government and
private firms and overcoming its limitations. It regulates currency achieving stable
exchange rate and mobilized capital for economic development and for simulation of
trade industry and banking sector. Nepal Rastra Bank (NRB) came into existence in
April 26th 1956 as a country’s central bank. After this, NRB diverted its attention
towards the development of banking system by formulating relevant policies and
procedures. In this commotion, commercial bank act 1963 was formulated; credit
control regulation was too formulated, hence, further shouldering the banking service.
 8

The Rastriya Banijya Bank (RBB) was established in 1966 under RBB Act 1964 as
fully government owned commercial bank.

2.4 Present Scenario of Banking in Nepal

The banking industry of Nepal doesn’t seem to be going in right track. The ongoing
interest war and expansion of banking network unprecedentedly has further
aggravated the problem. The present scenario of Nepalese financial sector is in a state
of deterioration. The problem is mainly seen in the lower class financial institutions
categorized as ''KHA" or "GA" by Nepal Rastra Bank.
A series of incidents rocked Nepalese financial market where many bad practices
were seen. Most of the development banks and financial institutions director or
managerial level made bad practices with the people’s deposit. They had misused the
money for wrong purpose and in an unauthorized way.
The victim of the bad practice resulting in insolvency was Gurkha Development Bank
at first. The managerial persons at managerial level had misused the deposits.
Similarly, Samjhana Finance , United Finance, People's Finance, Nepal share markets
and financial institute.Vibor Development Bank also faced the same situation and the
list will not conclude here.
The main reason behind the banks going insolvency is considered to be its investment
in Nepalese real estate sector which is in zero level. At times real estate sector had
boomed at a peak level. People invested in it in large volume and so did the financial
institutions but now the real state sector are at a low point.
Nepal Rastra Bank failed in proper monitoring of the banking institutions. Financial
institution is in big trouble and the monitoring institution should be effective enough
to solve the liquidity crunch to solve this problem.

2.5 Commercial Bank

Banking sector plays an important role in the economic development of the country.
Commercials Banks are one of the vital aspects of banking industry which, deals in
the process of channelizing the available resources in the needed sector. It is one of
the major financial intermediaries whose primary function is the transfer of monetary
 9

resources from the savers to the users. They have the widest range of activities and
they provide a large amount of the money supply.
A commercial bank is a depository financial intermediary which raises funds by
collecting deposits from businesses and consumers. It provides loans to businesses
and consumers. It also buys corporate bonds and government bonds. Its primary
liabilities are deposits and primary assets are loans and bonds. Commercial banks
came into existence mainly with the objectives of collecting the idle funds, mobilizing
them into productive sector in order to enhance the overall economic development of
the nation. They have the responsibility of safeguarding the interest of the depositors,
the shareholders and the society they are serving.
Commercial banks are the banks which are established with a view to finance and
help in developing trade, commerce and industry. Commercial banking can also refer
to a bank or a division of a bank that mostly deals with deposits and loans from
corporations or large businesses, as opposed to normal individual members of the
public.

2.5.1 Functions of Commercial Bank

The functions of commercial banks are broader in scope, size and magnitudes. Some
of the major functions of commercial banks are:
 Accepting deposits
 Providing loans
 Investment
 Liquidity management
 Cash management
 Capital structure management
The Commercial banks in Nepal are listed at the annex part.

2.6Profile of NBL

Nepal Bank Limited, the first bank of Nepal was established in November 15, 1937
A.D (Kartik, 30, 1994). It was formed under the principle of (Joint Venture between
government and general public). NBL’s authorized capital was Rs. 10 million and
issued capital Rs. 2.5 million of which paid-up capital was Rs.0.842 million with 10
shareholders. But now it has 1000 million authorized capitals. The bank has been
 10

providing banking through its branch offices in the different geographical locations of
the country.
The bank is under the control of Central Bank of Nepal, Nepal Rastra Bank (NRB).
NRB has appointed a four members management committee. This management
committee performs as the board of director of the bank. The bank is running under
the leadership of Nepal Rastra Bank (NRB) appointed Chief Executive Officer Binod
Atreya, Director of NRB.

2.7 Mission, Vision and Objectives of NBL

Vision Statement
Nepal Bank Ltd holds of a vision to remain “the leading financial institution of the
country” by providing premium products and services to the customers, thus ensuring
attractive and substantial returns to the stakeholders of the Bank. Nepal Bank is based
on the respect, service, reward, opportunity, cooperation, support and safety for the
customers.
Mission Statement
Nepal Bank Ltd seeks to provide an environment within the bank can bring unique
financial value and services to all customers. It will be a sound institution where
depositors continue to have faith in the security of their funds and receive reasonable
returns; Borrowers are assured of appropriate credit facilities at reasonable prices;
other service-seekers receive prompt and attentive service at reasonable cost;
employees are paid adequate compensation with professional career growth
opportunities and stockholders receive satisfactory return for their investment.
Objectives
To become the bank of first choice is the main objective of the Bank. Nepal Bank Ltd
has the following objectives:
 Continue to maintain leading share of banking sector with a significant
presence in all major geographical areas in the country.
 Provide competitive and customer oriented banking services to all customers
through competent and professional staff.
 Reclaim leadership within the national financial community.
 11

 Developing a fruitful bond with the society through continuous socially

responsible activities.

2.8 Capital Structure of NBL

The bank has been established with following capital Structure:

Table 3: Shareholding composition of NBL

S.N. OWNERSHIP PERCENT

1 Government of Nepal 40.49
2 ‘A’ Class Financial Institution 4.92
3 NRB Licensed Financial Institutions 3.42
4 Other Institutions 0.52
5 General Public 49.94
6 Others 0.71

Fig.1 Shareholding composition of NBL

2.9 Branches of NBL

The Head office of Nepal Bank Limited is located at New Road, Kathmandu and has
established 18th branches within the Kathmandu valley. The NBL region wise
branches are as follows:
Table 4: Region wise Branches of NBL
 12

Region wise branches Number of Branches

Kathmandu Region 29
Biratnagar Region 32
Birgunj Region 23
Pokhara Region 21
Nepalgunj Region 18
Total number of Branches* 123

2.10 Banking Services provided by NBL

2.10.1 Deposit

Current-Account
Current account is ideal for carrying out day-to-day business transactions. With NBL
Current Account, customers can access your account anytime, anywhere, pay using
payable at par cheques or deposit cheque at any NBL Branches. In today's fast-paced
world, business regularly requires to receive and send funds to various cities in the
country.
Saving-Account
This deposit scheme is designed to cater the saving needs and to create saving habits
of the individuals, households, businessman and corporate. Those persons or entities
having surplus amount in their hands can drop the same, even in a very small amount
into their saving account maintained with NBL, daily or many times a day. The
amount lying in their saving account will be able to withdraw as and when required.
This is like small saving of many days will give customers a bundle in future with the
addition of interest. Keeping money at home is risky as well as un-remunerative, but
when customers can come to NBL and drop your saving there will be no risk
&tension and at the same time you will also get a handsome interest. The minimum
amount needed for opening saving account in NBL is Rs. 500. Any balance below
minimum amount will be liable to incidental charges as fixed by the bank from time
to time.
Fixed-Account
Fixed Deposit can be opened with a minimum balance. Interest is payable Quarterly.
Penal interest is levied on withdrawal of FD prior to maturity. Tax is deducted at
source from the interest on saving deposit as per the Income Tax Act, 2058(2001).
 13

Nomination facility is available on FD. Strict confidentiality is assured on the

operation of FD. The tenure of FD are 1 months, 3 months, 6 months, 1 year, and
above 1years up to 5 years. The parties eligible to open FD account are Individuals,
Minors, Trusts, Associations, Clubs, and Societies.

2.10.2 Loan / Advances

There are various types of loan/advances products provided by NBL through its
extensive branches around the country:

Personal loans
Personal loans are provided to fulfill the personal needs of an individual. It is
basically provided against the land and building and other fixed properties of an
individual. There are mainly two types of personal loans i.e. Personal Term Loan and
Personal Overdraft Loan
Auto Loans
This loan is provided for purchase of new new vehicles. Auto loans are provided for
both private and commercial use.
The criterion for taking auto-loans is as follows.
 The loan is provided to Nepalese Citizens only.
 This is provided to any salaried and self-employed individuals and companies.
 The loan is provided to any salaried and self-employed individuals and
companies having regular and stable source of income.
 All borrowers and guarantors should not be enlisted in “Black List” of NRB.
 In case of individuals, the borrower must be at least 21years and should not
exceed 60 years at the time of maturity. The retirement age must be more than
the tenure of the loan.
 3 years work experience is needed for salaried individuals.
 The company / firm should be in operation since last three years.
 The person taking loan for the company / firm is to be authorized by the
company / firm as appropriate.
Home Loans
This loan is provided for purchase a plot of Land, purchase a plot of land and
construct a building on it, purchase of already built house, purchase of Bungalow
 14

constructed by builders / developers, renovation, modification, extension of existing

building and construction of building on land already owned. The loan is provided to
any individuals who have regular and stable source of income. This loan can be given
to any salaried and self-employed individuals. The loan will be provided to Nepalese
Citizens only.
Margin-Lending
This loan is provided against the shares of the companies, which are listed in Nepal
Stock Exchange (NEPSE) and acceptable to the bank. Any individual, companies, and
firms can take this loan. But, all the borrowers should be Nepalese citizen. This loan
can be taken against the shares owned by any person or company.
Business Loan
Loan and advance demanded & usages for the business purpose. Business it selves are
made from the cash flows of the concern business. Business loan are: Term loan,
working capital loan, Bridge gap loan, Infrastructure loan etc.

2.10.3 Other Services

NBL Web Remit

After the successful completion of 70 years, NBL introduced 'NBL Remit' - an
online/internet based Remittance Service for the purpose of facilitating to transfer the
earnings of Nepalese and Nepalese Expatriates in foreign countries with the help of
available NBL agents. Along with inward remittance from foreign countries, NBL-
remit is powered by domestic money transfer facility through all of the bank's
branches throughout the country with very minimal charge.

Safe Deposit Vaults

The Safe Deposit Vaults facilities provided by NBL helps customers to best protect
their valuable commodities and documents. Customer’s valuables are safely stored in
another location other than their home or business, which provides safest protection
for their commodities and documents from fire and theft. Safe deposit vault provides
protection for valuable commodities like jewels, medals, rare stamps and negatives
for important photos and valuable documents like insurance policies, birth certificates,
deeds, leases, contracts, bonds, certificates of deposit, etc. in case of fire or theft.
SMS Banking Services
 15

Nepal Bank Limited provides SMS (Short Message Service) Banking service to it's
valuable Customers. NBL provides the service from all computerized (44) branches.
In SMS Banking service, customer can get account information easily by sending
SMS to 1994. NBL SMS banking service also provides the extra services to its
valuable customers such as New Product information of bank, Loan alert messages
and cash withdrawal notification on customer's request.
Any Branch Banking Services (ABBS)
In this banking service, customer having account with NBL can access their account
from any NBL branches which are online or with in the network with central node. In
ABBS facility customer can deposit, withdraw and remit money from any one branch,
which are connected with central node.
E-Banking
Now NBL is just a click away. Customers can access their account in Nepal Bank
Limited on their desktop, from any place. NBL Internet Banking provides wide
coverage of services in order to facilitate valuable customers. Balance check, cheque
stop, cheque issue, statement print etc are some of the facilities under this service.
NBL ATM/Debit Card
NBL has introduced its ever-waited ATM/Debit Card by joining the hands with Smart
Choice Technologies (SCT), the first company in Nepal to provide networked ATMs. 
NBL ATM/Debit Card of Nepal Bank allows its customers to access a vast network of
ATMs located in various points in Kathmandu and other major cities within Nepal
displaying the SCT logo on it. The ATM card allows the cardholder to withdraw cash,
inquire account balances and to pay for purchases through POS transactions.NBL
ATM outlets support cards from the banks associated with SCT as well as Visa and
Master Cards.
Facilities
Above Loan/Advance facilities service provided by NBL their own customer, in the
way of personal loan, auto loan, home loan, margin lending loan & business loan etc.
 16

CHAPTER THREE
ANALYSIS OF THE ACTIVITIES DONE AND
PROBLEM SOLVED

3.1 Introduction of Customer Service Department of NBL

Customer Service Department is the primary level service, which deals with the
customers directly. NBL has designed a separate Help Desk Department in its
branches for providing help desk service to its customers. It is one of the most
important departments of any bank as it is the place of first contact for most of the
customers of the bank. The most part of convincing to get related with the bank is
done in the Help Desk Department, as it is the first place where the customers head as
soon as they land their first step in the bank. Only the critical and most sensitive cases
are put forward in the desk of the seniors.
Customer Service Department is the desk where customers are provided the required
information. It is often called as information desk as customer first contacts in this
department for their queries and the department being responsible for providing the
surface level assistance to the customers. Help Desk acts as an interface between the
customers and other departments of the bank. It is the first and the most important
place for the organization because it is the place where the customer is convinced to
invest their savings in the organization.
The help desk hence should be clean, efficient and friendly handled with the
sophisticated and technically sound employees of the bank. This is the most sensitive
department that is oriented towards customer and basically handles all the queries of
the customers. The knowledge gained regarding the major activities in this department
are:
 Customer Counseling
 Account opening
 Account closing
 Issuance of account statement
 Issuance of cheque book
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 Balance Inquiry
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. Having a significant number of this kind of
customers is only possible through the efficient functioning of help desk department
of any organization. It would then not be inappropriate to say that this department is
the key to success of any organization.

3.2 Functions and Responsibilities of CSD of NBL

Customer reception and attending to their needs.

2 Disseminating information related to various banking products and services that
are available to satisfy needs of customers.
3 Manage the various forms and vouchers such as different new account opening
forms, closing forms, etc.
4 Helping the customers to open the new accounts and the forms are filled up
precisely as per the needs.
5 Converting the hard information of the customer into the soft copy by entering the
same information from the account opening form in the banking software –
Newton.
6 Entering the personal information.
7 Scanning the signatures and photographs of the customers (stamp as well in case
of the account of the companies)
8 Maintaining the record of total number of the cheque requisition issued by the
customers and preparing the chequebook.
9 Making the photocopy of all necessary identification, documents as per the type of
the account being open and verify with the original one.
10 Providing the bank statement to the customers to see their transactions being taken
place.
11 Making regular contacts with customers to flow important messages such as:
 Pending information yet to be provided
 Issue of the services such as ATM card
 Maintaining good communication and coordination with the customers.
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3.3 Activities Done in CSD

3.3.1 Customer Counseling

The success of the bank depends upon success of help desk department. Customer
counseling is the most important function of help desk department. The efficiency of
the help desk department or an organization is the outcome of the quality of the
customer counseling that it provides. Help desk department is concerned with
counseling the new as well as the existing clients regarding the products and the
services provided in this branch.

3.3.2 Account Opening

It is the most frequent activity done in help desk department. Most of the customers
visit banks for opening an account. They open account for depositing money in the
bank for their safety by taking some percent as interest rate. Customers can open their
account as per their wish in various types of accounts, which are mentioned below:
 Current-Account
According to Commercial Bank Act (2031), “Current Account is the deposit accounts
maintained with the bank and financial institutions having the facility for withdrawal
on demand.” The account under which the customers can withdraw money at any time
according to their requirement is called current account. It is the account in which
there is no restriction in respect of the amount and number of withdrawals. No interest
is allowed to the customers under this account.
Features of NBL's Current Account
 No interest rate
 Minimum Balance Rs. 3,000
 Unlimited withdrawal
 Any branch banking
 Saving-Account
According to Commercial Bank Act (2031), “Saving Account is the deposit accounts
maintained with the bank and financial institutions with an objective of saving.” The
account, which has some features of current account as well as fixed deposit account,
 19

is known as saving account. It is the account, which is usually opened by individuals

in which there is restriction in respect of the amount and number of withdrawals. A
moderate rate of interest is allowed to the accountholder, which is less than the fixed
deposit account.
Features of NBL’s Saving Account:
o Minimum Balance Rs. 500
o Interest Rate is 4%

 Fixed-Account
According to Commercial Bank Act (2031), “Fixed Deposit is the deposit accounts
maintained with the bank and financial institutions for the stipulated period of time.”
The amount deposited in a bank for fixed period is known as fixed deposit. The amount
deposited under this account cannot be withdrawn before the expiry of the time period.
The Bank allows higher rate of interest in fixed deposit in comparison to other
accounts. The rate of interest differs according to the period of maturity.
Requirement to open new account
Customers are required to fulfill some basic requirement before they open their
account. Those requirements are mentioned below:
 For Personal Account:
 Personal Identification (Citizenship Certificate,2 Copies of Photograph and
Bill of electricity or water or voter card)
 Nominee Declaration
 Proprietorship Account:
 Declaration of sole proprietorship
 Copy of Registration Certificate
 Partnership Account
 Letter of Partnership duly signed by all partners
 Copy of the Partnership Agreement
 Certified copy of Partnership Registration
 Account of corporate bodies, copy of:
 Memorandum and Article of Association of the Company
 Resolution of Board of Directors to open and operate an account
 20

 List of directors duly signed by respective directors with home address and
phone numbers
 Certificate of commence of commencement of business
 Accounts of clubs, societies and associates (all documents to be duly
certified by the charity).
 List of Office Bearers
 Copy of by-laws
 Copy of Resolution to pen and operate the account
 Name and signature of persons authorized to operate the account
 Copy of the registration certificate
 For Minors:
Guardianship to be verified with related documents:
 Nominees form
 Photograph of the nominee
 Signature of the nominee
 For Clubs/Societies and Association:
 Copy of Registration Certificate
 Copy of Bye-Laws
 Copy of Resolution to Open and Operate the account
 List of members
 For Corporate body:
 Certificate of Incorporation
 Memorandum and Article of Association of the Company
 Resolution of Board of Directors to Open and Operate the account
 Sample of Company Seal
 Name of the Directors of the Board
 For Partnership Account:
 Certificate of Partnership Registration
 Copy of Partnership deed, if any
 For Proprietorship Account:
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 Registration Certificate
 Identification of Proprietors
Procedure for account opening in NBL

1 Received duly completed account opening form along with signature card. The
signature card should be signed by the customer in front of the bank officials.
2 Check the application form being filled by the customer and see whether all the
required information are being properly filled up or not.
3 Verify photocopies of documents with original one and attest it with the form.
4 The new account opened is being entered in the account opening register and
account number is written in the form.
5 The hard copy information is being converted into soft copy by entering all the
information in the banking softwarepumori.
6 Scan signature and photograph of the account holder to make signature accessible.
7 Higher-level staffs approve the accounts opened.
8 Customers are then provided with the cash / cheque deposit slip for depositing
cash in their newly opened account to maintain minimum balance set by the bank
to operate the account.
9 After all the necessary entries are made, checklist as per the type of account
opened is attached with the form.
10 At last the form is filed.

3.3.3 Account Closing

Customers also need to close their accounts because of different reasons. While
closing an account, customers need to fill up the account closing form. After filling up
the form, the last balance that is to be refunded should be calculated referring the
account opening form that is preserved in the file. After that, an account should be
closed and refund the remaining balance to the customer. The presence of the account
holder is a must while closing the account. The chequebook and ATM card, if
received must be returned to the bank while closing an account.
Procedure for closing account in NBL
Request related to closure of accounts should be made on the preprinted application
form available in the bank.
1 The customer should fill up the account closing form being provided by the bank.
 22

2 On receipt of request, the staff in help desk department verifies the signature over
the request.
3 The staff should inform the supervisor about the closing of an account.
4 For the closure of individual account and sole proprietorship account, the account
holder should visit bank himself / herself. Similarly, in case of joint account all the
account holders should be present.
5 For the closure of accounts following documents should be returned to the bank:
 All the unused cheques should be returned
 The ATM card should also be returned (if received)
6 Settlement of the balance after deducting all the required charges. Ensure that no
balance is left in the customer’s account.
7 Close the account in the banking system.
8 The account closing form with all the documents are to be filed in the account-
closing file.
9 The returned cheques should be punched making them void.
10 The returned ATM card should be destroyed and blocked.

3.3.4 Bank Statement Issuance

Bank statement contains the financial transaction of the customer’s account. All the
debit and credit balances, tax charges, interest are shown in the bank statement. On
the demand of the customers, the bank statement for required period of time is
provided. It is provided to the account holder.
Procedure for issuing Bank Statement in NBL
1 The account holder him/herself must be present to collect the bank statement; for
account holder’s inability to present, the agent must come with the last balance
statement issued to the account holder or cheque book.
2 The receiver must provide information to the help desk staff regarding account
title, account number, time period with account holder’s signature/reference.
3 At last the statement is provided with the stamp and signature of the staff of the
bank.
 23

3.3.5 Chequebook Issuance

Cheques are defined as a written order to someone's bank to pay money from his or
her account to the person to whom the cheque is made out. The person who draws the
cheques is called drawer, the bank on which the cheques is drawn in called drawee
and the person to whom payment is to be made is called payee. There are different
types of cheques.
Procedure for issuance of Cheque book in NBL
1 Authorized signature must be obtained on the account opening form to issue
chequebook for new account.
2 For old account, chequebook can be issued against cheque requisition form.
3 Number of leafs for new account is provided as per the type of account and for old
account number of leafs are provided as per the customers demand.
4 The account holder should be present while receiving chequebook.
5 Once chequebook becomes ready for delivery, make entry in the cheque book
issue register all the particulars related to that chequebook, the signature of
chequebook recipient to be obtained in the register as a proof of delivery of
chequebook.
6 Chequebook needs to be finally rechecked at the moment of handing over to the
recipient.
3.3.6 Balance Inquiry
For balance inquiry purpose, the account holder must be present him/herself in the
bank with some identification e.g. citizenship certificate, passport, license, etc. The
help desk staff, on fulfillment of the requirement of bank, searches in the Newton and
provides the information regarding account balance.

OBSERVED GAPS
Knowledge is different while put through practice and it’s a totally different at work.
But the learning we had in the classes been certainly fruitful to derive the necessary
solution for the problems at work. The management lessons we had been learning
may take a little higher level to utilize but we could sense its presence at every
moment of work. The gap between the theory and practice is always there and we felt
the very same difference while at work.
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CHAPTER FOUR

CONCLUSION AND LESSON LEARNT

4.1 Conclusions

The internship program is very fruitful for the development of students. During whole
period of internship and the preparation of this report the intern learnt a lot about the
banking sector and banking operation. From internship, the students are exposed to
real world of commerce and able to gain broad knowledge and experience with
different departments as well as working principles of commercial Banks. The student
working in the respective organization and the respective department should not only
sit and watch but also perform the task by himself/herself.

With the increasing number of Nepalese people working outside the country, the
demand for remittance service has been increasing. NBL has been leading bank in
remittance service as it has a large network of branches around the country. Apart
from this, NBL has established correspondence and agency relationship with various
institutions in remittance sector. NBL has been using modern technologies for
providing remittance service to its valued customers like SWIFT, Drafts, TT and Mail
transfer, etc. The remittance service of NBL has been assumed to be secure as it uses
secret key for inward and outward remittances.

Help Desk Department is one of the most important departments of any bank as it is
the place of first contact for most of the customers of the bank. It is the desk where
customers are provided the required information. The main functions of this
department is account opening, account closing, cheque printing and issuing,
providing bank statement on request and providing customers with the required
information on bank’s products and services. All the necessary documents require
during opening an account can be known through this department.

NBL has focused in improvements of the information technology, venturing into new
areas of banking activities and has laid greater stress in improving the quality of
manpower. The bank has also emphasizes to remain competitive in fast changing
 25

environment NBL promises to deliver customer centered products and services par
excellence with the customer care and full satisfaction

4.2 Lesson Learnt

Working as an intern in Nepal Bank limited for two months, I was able to use myself
in the world of business where I could apply my theoretical knowledge in practice.
This internship also provided me with greatest opportunity to acquaint myself with the
banking industry. Further, it provided me the practical exposure and helped me to
understand corporate social responsibility and develop corporate attitude.
Some of the lesson learnt during the internship program is stated below:
 Learnt to open different types of account under different schemes with
necessary documents.
 Learnt how to issue cheque of the customers which is only issued after the
approval by head of the department.
 Learned to developed positive attitudes and work under the rules, regulations
and culture of the organizations.
 Learnt how to operate banking system, i.e. Pumori.
 Learnt about the pension payment system to government employees through
Nepal bank limited.
 Learnt to print the statement of the customers from the date they want.

In an organization, personnel's despite being under work pressure, lots of

responsibility and under rules and regulation, there develop certain socialize
environment which attach one another beyond the hierarchy level creating the
environment more friendly and affectionate. The degree of socialize environment of
any organization determines the effectiveness and efficiency of any organizational
culture. Hence, the efficient management is the reason behind the success of any bank
despite of the heavy work load. This is the reason behind NBL's success in this
competitive world.
 26

BIBLIOGRAPHY
Books:
Asmita Books and publishers: Katmandu, Nepal.
Shrestha M.K. &, Bhandari D. B, (2004). Financial Market and Institutions.
Manandhar K.D. &Pokhrel S.B, (2009). Marketing of Financial Services.

Websites:
1) www.nrb.org.np
2) www.nepalbank.com.np
3) www.sharesamsar.com

Annual Reports:
Nepal Bank Limited: Annual report. Kathmandu, NB