Tribhuvan University

Central Department of Management

Master of Business Administration in Corporate Leadership

Electronic Banking Practices

An Internship Report

By

Santosh Banjara

TU Regd. 7-3-28-24-2021
Symbol No 126/21
Email: Santosh.789538@cdm.tu.edu.np
Central Department of Management Tribhuvan University

Performed at

Rastriya Banijya Bank

Balaju , Kathmandu

Submitted to
Office of the Dean
The Faculty of Management
Tribhuvan University

In partial fulfillment of the requirements of the Master of Business Administration in

Corporate Leadership Program (MBA-CL)

Kirtipur, Kathmandu

February, 2023
 INFORMATION SHEET

Company Rastriya Banijya Bank

Address Balaju, Kathmandu

Phone number of the company 01-4350625

Position Intern

Internship start date 22nd November 2022

Internship end date 2nd February 2023

Total internship duration 11 weeks

Work Hours 7 hours

Working department/ sections Customer Service Department, Cheque

Department, Electronic cheque clearing, ATM &
file recording.

Supervisor’s name Uma Chapagain

Supervisor’s position Deputy Manager

Supervisor’s contact number 9841633661

Supervisor’s email id uma.chapagain9841@gmail.com

Name of student Santosh Banjara

Contact No. 9860812298

E-mail banjusantosh@gmail.com

ii
CERTIFICATE OF COMPLETION OF INTERNSHIP

iii
 DECLARATION

This internship report titled "Internship on Electronic Banking Department" has been written
by Santosh Banjara, MBA-CL, Third Semester (2023) at the Central Department of
Management- Tribhuvan University, and has not received any previous academic credit at
this or any other institution.

Name of the intern: Santosh Banjara

Date:

iv
 RECOMMENDATION LETTER

Mr/ Miss/ Ms………………………………………………..has written this internship report

under my supervision and guidance and I have thoroughly checked it and found satisfactory
and so forwarded to further processing.

Name of the supervisor: Asst. Prof. Dr. Bal Ram Duwal

Date:

v
 ENDORSEMENT

This internship report titled “A study of Electronic Banking department of Rastriya Banijya
Bank” has been written by Santosh Banjara, MBA- CL Third Semester (2023) at the Central
Department of Management, Tribhuvan University, and has been endorsed for evaluation to
the Office of the Examination Control.

……………………………

Dr. Sunita Bhandari

Director

Central Department of Management Tribhuvan University, Kirtipur

Date:

vi
 ACKNOWLEDGEMENT
This internship report is prepared for the partial fulfillment of the requirement for the
degree of Master of Business Administration in Corporate Leadership. The internee chose
Rastriya Banijya Bank Limited Balaju, Kathmandu for performing the internship and during
the period of the internship, the internee performed activities in the internal administration
section, customer service department, cheque department, electronic cheque clearing, ATM
& file recording, balance inquiry, statement, cash sorting, loan filing and so on.

It’s my great pleasure to perform the practical activities in the Apex body of the financial
institution i.e. Rastriya Banijya Bank Limited. The completion of the internship and the
report has been possible only because of the appreciated support of many people. I sincerely
thank Mr. Mahendra Gurung and Mr. Uma Chapagain for supervising me throughout my
internship. I am very grateful to all the staffs of Rastriya Banijya Bank Limited, Balaju
Office who gave me their valuable time in guiding me throughout the training period and
helped me in preparing the final report.

Bearing in mind, I am using this opportunity to express my deepest gratitude and special
thanks to the Central Department of Management, supervisor Asst. Prof. Dr. Bal Ram Duwal,
Program Director Dr. Sunita Bhandari and Their support and guidance have been a great
value to complete the report in time.

I would like to appreciate and acknowledge my other faculty for providing me with an
opportunity and also helping me in conducting research and fieldwork at ‘Rastriya Banijya
Bank Limited’ as partial fulfillment of my MBA-CL program at the Central Department of
Management.

Finally, I appreciate all of them who have become a part of this report. This page is dedicated
to those people who have contributed a lot in successfully completing the final report.

Sincerely,

…………….………………

Santosh Banjar

vii
 TABLE OF CONTENT
Contents Page no.
INFORMATION SHEET..........................................................................................................................ii
CERTIFICATE OF COMPLETION OF INTERNSHIP.......................................................................iii
DECLARATION.......................................................................................................................................iv
RECOMMENDATION LETTER.............................................................................................................v
ENDORSEMENT......................................................................................................................................vi
ACKNOWLEDGEMENT........................................................................................................................vii
LIST OF ABBREVIATIONS.........................................................................................................................x
EXECUTIVE SUMMARY.......................................................................................................................xi
CHAPTER 1: INTRODUCTION............................................................................................................12
1.1 Background.........................................................................................................................................12
1.2 Objectives............................................................................................................................................13
1.3 Significance of the Internship.............................................................................................................14
1.4 Methodology........................................................................................................................................14
1.4.1 Organization Selection.....................................................................................................................14
1.3.2 Placement..........................................................................................................................................15
1.3.3 Duration............................................................................................................................................15
1.3.4 Activities...........................................................................................................................................16
1.4 Limitation............................................................................................................................................16
CHAPTER 2: BRIEF INTRODUCTION OF THE INDUSTRY & THE ORGANIZATION............18
2.1 Origin of Bank.....................................................................................................................................18
2.2 Meaning of Bank:................................................................................................................................18
2.3 History of Bank:..................................................................................................................................19
2.4 Commercial Bank...............................................................................................................................19
2.5 Introduction of Rastriya Banijya Bank Limited...............................................................................20
2.8.7 Organizational Structure.................................................................................................................21
2.8.8 Present Situation of Banking Sector...............................................................................................22
Table 2.1 Performance of RBBL for 3 Years..........................................................................................22
SWOT Analysis of RBB............................................................................................................................23
2.8.9 Challenges and opportunities..........................................................................................................24
CHAPTER 3: ANALYSIS OF THE ACTIVITIES PERFORMED.....................................................25
3.1 Introduction of Performance..............................................................................................................25
3.1.1 Customer Service Department.......................................................................................................25
Customer Query Handling.......................................................................................................................25
Balance Enquiry Handling.......................................................................................................................25

viii
KYC Form Update....................................................................................................................................26
Account Opening.......................................................................................................................................26
3.1.2 Electronic Banking Department.....................................................................................................26
3.1.3 Major functions performed in Electronic Banking Department..................................................27
Analysis on Mobile Banking Services......................................................................................................27
Analysis of Settlements of Disputes.........................................................................................................28
Analysis undertaken on VISA Debit Cards............................................................................................28
Procedures for VISA Debit Cards...........................................................................................................29
Software used in Electronic Banking.......................................................................................................29
3.1.4 NARADA..........................................................................................................................................29
3.1.4.1 Card Activation.............................................................................................................................30
3.1.4.2 Lost Card Reporting.....................................................................................................................30
3.1.4.3 Replacement/Re-issuance.............................................................................................................30
3.1.4.4 Regenerate New PIN Number......................................................................................................30
3.1.4.5 Renewal Process............................................................................................................................31
3.1.4.6 Closing of Card and Account.......................................................................................................31
3.1.4.7 Handling of Captured Cards........................................................................................................31
3.1.5 PUMORI...........................................................................................................................................32
3.1.6 Fonebank..........................................................................................................................................32
3.1.7 Problem solved.................................................................................................................................33
3.2 Position and Responsibility of Intern.................................................................................................33
3.3 Experience in Internship....................................................................................................................34
3.3.1 Key Skills..........................................................................................................................................34
3.3.2 Key Attitudes Learnt.......................................................................................................................35
3.4 Main issues identification and resolved.............................................................................................35
Problem encounters..................................................................................................................................35
Solution......................................................................................................................................................36
CHAPTER 4: SUMMARY, CONCLUSION AND IMPLICATION....................................................37
4.1 Summary.............................................................................................................................................37
4.2 Conclusion...........................................................................................................................................37
4.3 Implication...........................................................................................................................................38
Recommendations to the Organization:..................................................................................................38
Recommendations to the University........................................................................................................38
Future Internee.........................................................................................................................................38
References..................................................................................................................................................40

ix
LIST OF ABBREVIATIONS

CDM Central Department of Management

FOM Faculty of Management

IC Indian Currency

MBA-CL Master of Business Administration in

Corporate Leadership

NRB Nepal Rastra Bank

RBBL Rastriya Banijya Bank Limited

TU Tribhuvan University

KYC Know Your Customer

ABBS Any Branch Banking Service

MIS Management Information System

NTC Nepal Telecommunication Corporation

ATM Automatic Teller Machine

BAFIA Bank And Financial Institutional Act

x
 EXECUTIVE SUMMARY

As per the requirement of Tribhuvan University course under MBA-CL program this
report is designed according to the knowledge gained on field based experiences. The
main aim of the twelve weeks internship program is to provide intern opportunity to
implement theoretical knowledge practically. Out of various area on sector for internship,
Internee choose banking sector, more specifically Electronic Banking department of
Rastriya Banijya Bank, Balaju Office, Kathmandu, Nepal. Among the various business
firms banking plays very important role in an economy by providing various services
customer service department, cheque clearing, ATM & file, mobile banking, bank
statement, balance inquiry etc. but it is not easy to cope and function in the changing
globalized environment. Also, Rastriya Banijya Bank Limited is one of the leading bank
in Nepalese environment with many branches all over the country.

Before the preparation of report, the writer has gone through various literature reviews
such as published and unpublished articles. Published articles such as Nepal Rastra Bank
report, unpublished articles such as dissertation of seniors. This internship report is based
on structured and participants observation.

In internship report Internee have introduced the Rastriya Banijya Bank Ltd. and
dedicated the first phase for its general background and applied the methodology to
conduct this study. The second phase of the project is done on analysis of financial
industry in Nepal. The third phase of the project is based on the different activities that
Internee has done. Finally, in the fourth phase of this report inculcates conclusions,
recommendations and implication.

xi
 CHAPTER 1: INTRODUCTION
1.1 Background

Nepal has its own financial position and sectors which consists of banking and non-
banking sectors. Nepal Rastra Bank and other commercial banks come under banking
sectors whereas finance companies, development banks, financial institutions and NGO’s
involved in banking activities come under non-banking sectors. (Rawal, 2002)

Tribhuvan University offers a course for MBA-CL program, which is the best way to learn
and gain the knowledge regarding the corporate environment and culture. This way any
individual can obtain the maximum knowledge from the business world. They have the
right to learn and make the things more transparent. This internship was carried on in the
Balaju office of the Rastriya Banijya Bank Limited, Kathmandu, Nepal. The internship
program was for twelve weeks, which started from 22nd November, 2022 to 2nd February
2023 in which the internee was placed in different sections as internal administration
section, customer service department, cheque department, electronic cheque clearing,
ATM & file recording, balance inquiry, statement, cash sorting, loan filing and so on.

An internship is a study program for the students, which are carried out in an organization
to meet the requirement of the study in colleges or universities. This report is submitted to
fulfill the requirement for the completion of the degree of Master of Business
Administration in CL under Faculty of Management (FOM), Tribhuvan University is a
two year postgraduate program which emphasis on deepening knowledge in applied
leadership and develop analysis skills by using technology relevant for financial
management and analysis careers.

Interns are usually college or university students to gain various skills, knowledge and
learning experiences on different aspect of organization’s environment. Internship also
helps students to understand the different activities of the organizations and how
synergetic effects are achieved in the corporate world. This also helps students to add-up
social, technical and communication skills to work effectively in the industry. Today,
many organizations are cooperating with the educational institutions to provide the
internship service with the specific benefits to the students.

An internship provides the student with a greater understanding of organization’s work

12
environment with educational qualifications. Hence in the frenetic financial environment,
the roles of commercial banks are unavoidable. The report focuses on over all banking
activities concerned with its major functioning department of Rastriya Banijya Bank
Limited.

Through internship an individual can explore the working process of an organization being
a part of the actual working environment. Here students receive practical knowledge
through observation and develops academic credit for the work experiences as well.
An internship help the individual to expose to the interpersonal relationship, which is the
demand of every job, both with the boss, co-workers, supervisors and the other lower level
staff members who are the first basic things for a bank to obtain successful and contended
career. It assists the students to identify their potentiality and area of interest. Internship is
the necessary medium for enabling employees to persist students to work in up to date
competitive business environment. Internship is seen as the major way to enhance and
support the internee’s banking career as well.

An internship is the way of developing analytical activities by practically doing it;

therefore it provides an opportunity for learning as well as developing the analytical skills.
It gives a direction and provides ideologies for the practical problems. Every single
activity that takes place daily is simultaneously observed and analyzed. Any usual
problems and underlying causes or drawbacks are closely monitored and understood. The
potential solutions can be determined that certainly enhances the effectiveness and the
strength, minimized the weaknesses that helps to maximize the profit and the growth rate.

1.2 Objectives

The internship program is undertaken for the partial fulfillment of the requirement for the
degree of MBA-CL. The general objective of the program is to make students familiar
with the working environment and gain the practical experience in the related field. This
further helps the students to expose themselves to the real work of the external
environment about different aspect of management where they can apply the theoretical
knowledge. The main task of the internship program is to make a study on the banking
operations process, understand the services provided to its customers and have
complete knowledge and functioning of the related departments. However, the specific
objectives of the study are:

13
 1. To acquire sound knowledge about the skills policies and principles

2. To understand the real complexity and unforeseen problems and opportunities

3. Apply the theoretical knowledge in real world working environment.

4. To fulfill program requirement for the degree.

1.3 Significance of the Internship

The internship program as equipped the internee with more knowledge in addition to that
obtained in class in relation to the working environment. Also, has helped the internee to
gain business work experience since internee was involved in practical work in a business
environment. The internship program has helped the trainee to gain business work
experience since internee was involved in practical work in a business environment.CDM
TU has provides such a opportunity where internee got a change to blend the theoretical
concept to test in real working environment so that internee can test their understanding
and get clarity in future work. Furthermore, internship provides a clear picture of road map
of internee whether they are fit for such kind of job or not.

1.4 Methodology

Completion of the internship is a combination of the different types of activities. It starts

from the selection of the organization for the internship Rastriya Banijya Bank,
performance of different kinds of activities and placement in different parts of the
organization and at last collection of various primary and secondary data for the
preparation of the report. In terms of data collection, both primary as well as the secondary
source had been used as such; published and unpublished articles. Published articles such
as Nepal Rastra Bank report, unpublished articles such as dissertation of seniors. This
internship report is based on structured and participants observation.

1.4.1 Organization Selection

Being a student specialization in Corporate Leadership courses of MBA, author had to

select a financial institution which could help me broaden my spectrum of knowledge
about the banking, business and financial sector. So author decided to choose Nasiriya
Banijya Bank Limited for doing internship. Author thought that it would give me an
opportunity to realize my theoretical knowledge into practical field.In order to approach
the bank, the requirements were the recommendation letter from the college and

14
curriculum vitae. After screening my curriculum vitae by the authority of Human Resource
Department (Head Office), author was duly selected as an intern there. So author started
working there from 22 November, 2022 to 2 February 2023.

1.3.2 Placement

During the internship, I was placed in the internal administration section, customer service
department, cheque department, electronic cheque clearing, ATM & file recording,
balance inquiry, statement, cash sorting, loan filing at the Balaju Office. I was required to
handle the activities of the mentioned sections under the guidance and supervision of Mr.
Mahendra Gurung, Mrs. Uma Chapagain, Mrs. Sangita Chapagain and Mrs. Mira
Shrestha. In addition to them, the other staffs were equally cooperative and helped me to
learn the activities of the various sections as well. Through their proper guidance, the
intern was able to learn more about the organization culture, work environment, and work
procedures.

1.3.3 Duration

TU has prescribed minimum three credit hours for the internship. It is equivalent to twelve
weeks i.e. three months. But, as per the Rule of Rastriya Banijya Bank, the first tenure of
an internship was eight weeks and later the remaining four weeks were added up. As stated
earlier, the internship period started from 22 November, 2022 to 02 February 2023.
Internee was required to report the organization at 10 AM daily. The bank has closely
monitored

Attendance, performance and conduct of intern at the workplace.

The following table illustrates the duration of internship:

Table 1.1 Duration of Internship

S.N Departments/ 1st 2nd 3rd 4th 5th 6th 7th 8th 9th 10th 11th
Weeks

1 Customer Service
Department

2 Cheque
Department

15
 3 Electronic
Cheque Clearing

4 ATM & Mobile

Banking

1.3.4 Activities

As per the requirement of Tribhuvan University, MBA student should conduct internship for
11 weeks (from 22 November 2022 to 02 February 2023). So, the internee conducted the
internship for 12 weeks, which is equal to minimum requirement. As Internee got an
opportunity to work in electronic banking department in different section and the Timing
of the internship was from 10.00 - 5:00 and onward. It was from Sunday to Friday
except in days of public holidays. This internship program has been very fruitful for the
internee to get real life experiences of the banking activities of the organization. During
eight weeks of internship at Rastriya Banijya Bank, Balaju, Internee worked in different
sections of e-banking department such as customer service management, Mobile
banking, Card dispatch, and Delivery management. Internee has been provided the
opportunities to study the electronic department and gain different skills of the ATM
services. Internee has attempted to submit this report as the result of internship program.

As the rules and regulation of the bank, I had an agreement with the bank that during my
internship. I’m not allowed to disclosure any information that could be harmful for bank
in the future. As per an agreement Internee has successfully completed my internship
criteria according to the agreement.

During the 11 weeks’ period I worked in different department with different time
duration.

1. Customer Service Department

2. Cheque Department

3. Electronic cheque clearing

4. ATM and Mobile Banking

1.4 Limitation

Despite most of the efforts undertaken to make the study more realistic, practicable in terms

16
of Nepalese context, there are certain limitations of the study. The limitations that Internee
faced during the internship and during the preparation of this report are listed as:

1. This report only visualizes the activities Internal Administration Section, Customer
Service Department, Cheque Department, Electronic Cheque Clearing, ATM & file
recording, Balance Inquiry, Statement, Cash sorting, Loan filing of the Balaju Office
and not of the entire organization as a whole

2. The study is not applicable to other organizations of similar nature.

3. The data collected may not be so accurate as information was collected from the
limited personnel only.

4. This report does not cover human resource management and management information
system.

17
 CHAPTER 2: BRIEF INTRODUCTION OF THE INDUSTRY &
THE ORGANIZATION
2.1 Origin of Bank

The term ‘Bank’ is derived from Old Italian word ‘Banca’ or from of French word ‘Banque’ both
means a Bench or money exchange table. In olden days, European money lenders or money changers
used to display coins of different countries in big quantity on benches or tables for the purpose of
lending or exchanging. (Akrani, 2011)

The first bank called the ‘Bank of Venice’ was established in Venice, Italy in 1157 to finance the
monarch in his wars. But modern banking began with the English goldsmiths only after 1640. The
first bank in India was the ‘Bank of Hindustan’ started in 1770 by Alexander & Co., an English
agency house in Calcutta which failed in 1782 with the closure of the agency house. But the first bank
in the modern sense was established in the Bengal Presidency as the Bank of Bengal in 1806. (chand)

2.2 Meaning of Bank:

A bank is a financial institution which deals with deposits and advances and other related services. It
receives money from those who want to save in the form of deposits and it lends money to those who
need it. Banking began with the first prototype banks of merchants of the ancient world, which
made grain loans to farmers and traders who carried goods between cities and this system is known as
a barter system. There are two types of banks: commercial/retail banks and investment banks. 

There are some of the definitions given by different scholar:

“Bank is such a financial institution which collects money in current, savings or fixed deposit
account; collects cheques as deposits and pays money from the depositors‟account through cheques.”
(Pagette, 2014)

“Bank is an institution which collects idle money temporarily from the public and lends to other
people as per need.” (Kent, 2014)

“Bank is a financial intermediary institution which deals in loans and advances.” (Cross, 2014)

18
2.3 History of Bank:

The history of banking in Nepal dates back to the year 1937 AD with the establishment of Nepal
Bank Limited as the first commercial bank in Nepal. It was established as a semi-government bank
with METALLIC COINS worth NRs 10 million as the authorized capital. Banknotes in Nepal
weren’t introduced up until the mid-1940s. It was in the year 1945 that the earliest banknotes were
issued by the treasury “Sadar Muluki Khana”. These notes were signed by a “Khajanchi”, the head
of the treasury who also was a high Hindu Priest.Later in the year 1955, Nepal Rastra Bank Act was
formulated for a better banking system and Nepal Rastra Bank was established in 1956 as the Central
Bank of Nepal accordingly. After this date, the banknotes were issued by the Central Bank with the
signatures of the governors of the institution.

Till the 1980s, the banking sector was wholly owned by the government, with Agriculture
Development Bank, Rastriya Banijya Bank, NBL and NRB being the pillars of financial institution in
Nepal. In 1984 saw the start of the private banking industry with the establishment of Nabil Bank and
the introduction of foreign banks such as the Nepal Arab Bank, Nepal Indosuez Bank and Nepal
Grind lays. The banking sector in Nepal has faced many hurdles and hindrances. It has undergone
various political conflicts and instability. But today, it stands more liberalized and modernized. There
are various types of banks working in the modern banking system in Nepal. As per the list issued by
NRB as of march 2023, the modern banking sector includes 20 Commercial Banks, 17 Development
Banks, 17 Finance Companies, and 69 Microfinance Institutions.

2.4 Commercial Bank:

A commercial bank is a type of financial institution that accepts deposits, offers checking account
services, makes business, personal and mortgage loans and offers basic financial products
like certificates of deposit (CDs) and savings accounts to individuals and small businesses. A
commercial bank is where most people do their banking, as opposed to an investment bank.
Commercial banks make money by providing loans and earning interest income from those loans.
The types of loans a commercial bank can issue vary and may include mortgages, auto loans, business
loans and personal loans. A commercial bank may specialize in just one or a few types of loans.

A commercial bank is authorized to serve the following functions:

1. Receive deposits - take money in from individuals and businesses (called depositors)
2. Disburse payments - make payments upon the direction of its depositors, such as honoring a
check

19
 3. Collections - a bank will act as your agent to collect funds from another bank payable to you,
such as when someone pays you by check drawn on an account from a different bank
4. Invest funds in securities for a return
5. Safeguard money - banks are considered a safe place to store your wealth
6. Maintain and service savings and checking accounts of its depositors
7. Maintain custodial accounts - accounts controlled by one person but for the benefit of another
person, such as a trust account

2.5 Introduction of Rastriya Banijya Bank Limited

RBB Ltd. - established on January 23, 1966 (2022, Magh 10) - a synonymous of stable and people's
bank in Nepal - is one of the pioneer Bank in the country with the history of nearly a half century.
Earlier constituted under RBB act 2021 with the full ownership of the government of Nepal, the Bank
has been running under Bank and Financial Institute Act (BAFIA) and Company Act (CA) 2063 at
present. The Bank licensed by NRB as an 'A' class commercial Bank of the country, has grown up as
an indispensable component of the Nepalese economy.RBBL which has made glorious history of
contributing for the monetization of the economy, eliminating dual currency in the market, initiating
preliminary financial literacy, and help flourish industrial, commercial and financial sector of the
country has now emerged as a modern and strong financial institute of the country. The Bank with
2600 hands has expanded its wings in the most part of the country through multiple distribution
outlets of 207 branches, 17 counters, 93 branch less banking (BLB) and 165 ATMs. The Bank with
the highest public confidence- reflected in the highest deposit base and growing demand for branch
establishment in the various parts -has stood as a pyramid in the financial arena of the country. The
Bank with as many as 1.7 million satisfied /direct customers ranging from poor to elite ones and
millions of indirect ones has drawn important imprint in the picture of country's economy through its
significant involvement in the best use of its resources to enhance the production, income and
employment opportunities. The Bank is fully committed to contribute its best for the socio economic
development of the country and people in the days to come

20
2.8.7 Organizational Structure

The board of directors is responsible for policy making and guidelines to the management. The
government nominates all board members including the chairman. The executive power is vested in
the chief executive officer (CEO). CEO is the highest-ranking corporate officer or administrator in
charge of total management of the bank. An individual appointed as CEO reports to the BOD. He/she
has the responsibility to act as a communicator, decision-maker, leader, manager and executor.
He/she advises the Board of Directors, motivates employees and drives changes within the bank.

The bank has 19 departments in its head office. RBBL has the largest branch network in Nepal; the
branch operation department is responsible for supervising the 258 branch network, 145 ATMs, 41
exchange counter and 98 Any Branch Banking Services. The internal audit department monitors the
work of the branches and regional offices. The figure below exhibits the organizational structure of
RBBL:

Source: rbb.com

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 2.8.8 Present Situation of Banking Sector

Banking in Nepal has become an important feature, which renders services in the people in
financial matters, and its magnitude of action is extending day by day. It is the major
institutional system in Nepal, which carries out financial flow within the economy. The
significance of banking in Nepal also highlights its importance with the electronic banking in
the recent years. In the recent times, the branches are being opened at rural areas where
deposit growths are at a slower pace. The leverage ratio of this bank is good i.e., above 7%
which is also above the regulatory requirements of 4%. But the retained earnings are not
good.

Table 2.1 Performance of RBBL for 3 Years

Ratios 2073/74 2074/75 2075/76 2076/77 2077/78

Capital adequacy ratios (%) 10.39 11.47 12.54 13.26 12.88

Nonperforming loan/total credit (%) 3.77 4.75 4.28 4.23 3.62

Loan loss provision (%) 152.18 174.53 100.89 96.14 99.18

Cost of capital (%) 1.27 2.74 2.74 4.19 3.39

Leverage ratio (%) 7.2 7.39 7.49 7.5 7.1

Base rate % 5.95 6.20 5.38 6.72 5.5

EPS (Rs) 42.19 59.17 51.81 44.96 47.47

According to the above table, the capital adequacy ratio (CAR) of this bank is on increasing trend
from the year 2075/76 to 2077/78. The CAR of the bank for 2077/78 is 12.88% which is
above the regulatory requirement of 11%. The non-performing loan of the bank decreased
from the year 2075/76 to 2077/78. The loan loss provision decreases for the year 2075/76 to
2076/77 and the provisioning increases thereafter. The base rate of the bank has been
increasing as the cost of capital has been increasing for the bank over the year. Banks
performance has been improving as can be seen via net profit.

Hence the central bank should exhibit its aggressiveness to bring back the lost track of bank and
financial institutions. Banks are rapidly expanding their reach and new player are joining the
market. Banking sector has been very successful in weathering the storm in the last decade

22
 and has proven to be one of the best success stories in Nepal. This sector need to be taken to
the newer height through adopting the best international practices both on governance and
risk management fronts.

SWOT Analysis of RBB

SWOT analysis is the analysis strength, weakness, opportunity and threat. SWOT analysis is used to
analyze the internal and external environment of an organization. All the external forces of the
organization provide an opportunities and threats and the forces in the internal environment of an
organization provide strength and weakness.

Within the help of SWOT analysis, internal strength can be matched with the external opportunity to
gain the competitive strategic advantage. Similarly, internal weakness can be corrected and external
threat can be avoided. The aim of SWOT analysis is to produce a good fit between resource capability
and external opportunities. For every organization to be stable SWOT Analysis helps in incredible
way for which every aspect should be viewed. Being a topmost organization of Nepal this analysis is
to be prioritized for which following observation is made. Following are the strengths, weakness,
opportunities and threats of RBB.

Strength: Weakness:

• Strong management, brand name, image, • No clear strategic direction.

reputation.
• Weak Marketing Skills.
• Widely recognized market leader
• Lack of innovative and
• Product innovation skills active manpower.

• Good customer service • Internal operating problem

• Better product quality • Falling behind in research development.

• Valuable human assets. Threats:

Opportunities:
• Entry of new competitors.

• Service additional customers ground. • Slowing market growth.

• Expanding to new geographic areas. • Adverse change in trade policies and

exchange rate.
• Expanding product line

23
 2.8.9 Challenges and opportunities

Commercial bank performs various financial and banking activities. Throughout the
performance, commercial bank faced challenges and analyzes opportunities in order to cope
up with the future problems and perform all the activities in an effective way. There are
various threats as well as opportunity. Thus, the following are the challenges and
opportunities:

Network: The good communication system offered by the vendors at the various locations of the
country. Similarly, the reliability of the communication system as well as erroneous
connectivity even in urban area.

Security: Security of financial transaction, being executed from some remote location and
transmission of financial information.

Scalability and Reliability: To handle the exponential growth of the customer base, with IT
enable banking, the customer may be sitting in any part of the world (a true anytime,
anywhere banking) and hence banks need to ensure that the systems are up and running in a
true 24 X 7 fashion. As customers will find electronic banking more and more useful, their
expectations from the solution will increase. Banks unable to meet the performance and
reliability expectations may lose customer confidence.

Interoperability: There is a lack of common technology standards for mobile banking. There are
a large number of different mobile phone devices and it is a big challenge for banks to offer
mobile banking solution on any type of device.

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 CHAPTER 3: ANALYSIS OF THE ACTIVITIES
PERFORMED
3.1 Introduction of Performance

Being an intern in one of the reputed bank of Nepal, intern got an opportunity to learn
experience and gain knowledge about the working of all the services provided by RBB.
During the internship, I was placed in the internal administration section, customer service
department, cheque department, electronic cheque clearing, ATM & file recording, balance
inquiry, statement, cash sorting, loan filing at the Balaju Office.

3.1.1 Customer Service Department

A company’s customer service department handles the concern of customers. The department
answers customer’s questions attempts to resolve customer’s complaints and tries to sell new
service to them. RBB at Balaju office have separate customer service department function to
help customer. Various works performed from under customer service department are
described below:

Customer Query Handling

As a CSD staff during internship, all internee time was spent in handling the numerous
queries of various walk-in customers. Internee gave the information that they wanted. Many
customers were interested to learn about that product, which Internee happily obliged. In
addition to that, Internee answered queries about banks other products, services, transactions
hours’ etc. internee single- handed handled all the customer queries physically.

Balance Enquiry Handling

During internship Internee learnt that bank takes special caution in disclosing the balance in
any account, which internee found very impressive. Customers often come to CSD for
balance enquiry but it is only entertained after establishing the identity of the a/c holder by
checking the photo or signature in the system. Telephone balance enquiries are not
entertained. No one is given the privilege of Balance Enquiry via phone.

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KYC Form Update

KYC is an acronym for ‘Know your Customer’, a term used for customer identification
process. It involves making reasonable efforts to determine true identity and beneficial
ownership of accounts, source of funds, the nature of customer business etc. which in turns
help the banks to manage their risks prudently. The objective of the KYC guidelines is to
prevent banks being used intentionally or unintentionally by criminal elements for money
laundering.

KYC update is the recent activity by NRB at 2071-4-31. That is carried out in all the
commercial banks and developments banks as instructed by NRB.

Account Opening

Any interested customer who wishes to open an account in RBBL is inquired about the type
of account customer wants to open, then customer is provided with account opening form and
is requested to fill up account opening form and attach all required documents. After the form
is filled up by customer, intern verifies the form and passes on to the CSD head for final
verification. After the approval from CSD head, CSD staff opens an account in bank on the
name of respective customer. Then the customer is provided with an account number and
requested to deposit at least minimum amount according to their account type.

During account opening time intern asks customer whether customer need other services
offered by bank like the ATM Card service, internet banking service, SMS banking service
etc. and if customer is interested to get those services then customers are asked to fill up
respective forms to get those services.

3.1.2 Electronic Banking Department

Electronic Banking refers to the systems that enable bank customers’ access to accounts and
general information on bank products and services through a personal computer (PC) or other
intellectual devices. E-banking is the cornerstone and waves of the future banking services
and security. Now most of the banks in Nepal are providing a number of E-Banking services
and playing a pivotal role. E- Banking services is one of the great initiatives to bestow a part
of modern world. It provides gigantic benefits to consumers in terms of case and cost of
transactions, either through

Internet, telephone, Mobile, Other electronic delivery channels for any consumers, electronic
banking means 24-hours access to cash through an Automated Teller Machine (ATM) or

26
Direct Deposit of paychecks into checking or savings accounts. But in present time E-
Banking involves numerous types of transactions. E- Banking offences are earlier occurred in
Nepal.

Today e-banking play a key role in the national economy. ATMs, telephone banking, PC
banking to internet banking are rapidly being introduced. E-banking reduces costs and
improving competitiveness by developing alternative distribution channels. It also increased
the ability to enlarge their accessible customer stand.

Electronic banking refers to the process of performing various banking activities by the use of
electronic channels through mobile phone, internet etc. One of the studies has found that in
terms of electronic banking, ATM services are adapted by most of the banks in Nepal.

The forms of e-banking include:

 Credit Cards (introduced by Nabil Bank in 1990)

 Debit Cards (all commercial banks)

 Automated teller machines (introduced by Himalayan Bank Ltd. in 1995)

 Electronic fund transfer at points of sale (EFTPOS)

 Internet banking (introduced by Kumari Bank Ltd. in 2002)

 Mobile banking (introduced by Laxmi Bank Ltd. in 2004).

3.1.3 Major functions performed in Electronic Banking Department

Electronic banking changes the value of banking brand. E-banking can serve cheaper
transactions facilities for the customer within a short time. Through e-banking people can
make a transaction easily and safely. On the other side, banks feel secured about their all
transactions smoothly, swiftly, timely and accurately. The major functions to be performed in
electronic banking under various areas are listed below.

Analysis on Mobile Banking Services

Mobile banking refers to the use of a smart phone or other cellular device to perform online
banking tasks while away from your home computer, such as monitoring account balances,
transferring funds between accounts, bill payment and locating an ATM. Mobile Banking is a
service that allows you to do banking transactions on your mobile phone without making a
call, using the SMS facility or

27
Using Wireless Access Protocol (WAP). The majority of mobile banking application in
Nepal is developed by F1 Soft company, established in 2004, which works in the field of
software development and providing it`s Information Technology services since more than 10
years. Following operations can be performed using mobile banking services.

 Balance Enquiry

 Funds transfer

 Mini Statement

 Cheque Book Request

 Purchase Recharge Cards

 Payments on Retail Outlets

 Top ups and Bills Payment

Analysis of Settlements of Disputes

The cardholder of the bank may have dispute on the transaction performed by their card
either through use of Bank’s own ATMs and Point of Sale (POS) terminal or through the use
on any other ATMs and point of sale (POS) terminal. At this time, customer doesn’t receive
cash but his/her account debited. Thus, such problem is analyzed by bank by obtaining the
written application from the cardholder and should get the following information:

 Cardholder’s date of complain.

 Card number of the card holder.

 Card holder name and contact number.

 Transaction date.

 Transaction amount.

 Bank/ATM/Merchant name and Location.

 Reason for the dispute.

Analysis undertaken on VISA Debit Cards

VISA Debit Cards can be used at any ATM machine connected to Visa Network in Nepal and
India for Domestic Cards and worldwide for International Cards. It can be used at any POS

28
terminal connected to Visa Network for the purchase of goods and services. It operates in
electronic environment and cannot be used in manual imprinter machines. It will not have
any pre-set limit and the cardholder can use the card up to the balance in his/her bank account
or up to the daily limit assigned by the issuer bank. The transaction amount will be debited to
the cardholder’s bank account on real time of transaction.

Procedures for VISA Debit Cards

 Application Form Collection & Registration

 Application Form Entry in Card Management System

 Entry Verifying, Modifying

 Authorizing

 Dispatching and Delivering Card and Pin

 Data export to Electronic Banking Department

Software used in Electronic Banking

Various software is used to run the working procedures of banking transaction. So I got an
opportunity to work in different areas of electronic banking and also got a chance to perform
in kinds of software like Narada, Pumori and Fone Bank.

3.1.4 NARADA

NARADA is software which is comprehensive solution to manage the life cycle of Card
Production from customer registration to PIN, mailer generation and card issuance. It
supports all functions necessary to manage and service the Cardholder including photograph
and signature scanning. By using NARADA, the internee can easily perform the task
regarding VISA debit cards which are listed below.

 Creation of Card

 Activation of Card

 Change Card Status

 Re-issue of Card

 Pin Reset and Regenerate

29
Following are the activities analyzed while using NARADA software in case of VISA Debit
Card. Some procedures can be undertaken while creating the VISA Debit Card.

3.1.4.1 Card Activation

1. Card must be activated only after the customer requests for activation.

2. One of the following must be verified to identify the authentication of the

cardholder:

3. Date of Birth

4. Mother’s Maiden Name

3.1.4.2 Lost Card Reporting

1. If a debit card is lost or stolen or misplaced, the cardholder should inform the
Electronic Banking Department or nearest branch of the bank.

2. The Electronic Banking Department officials on receiving the information should

immediately block the card to prevent any misuse.

3. Within 24 hours, he/she is required to submit a written request to block and Re-
issue the card to the concerned branch.

3.1.4.3 Replacement/Re-issuance

1. The concerned branch should verify the signature in the application and
forward the request to reissue the card as per the attached form.

2. Necessary re-issuance fee shall be levied to the cardholder for the new card.

3. If the customer requests to reissue the card as urgent, he/she must deposit the
urgent charge.

3.1.4.4 Regenerate New PIN Number

1. If the cardholder misplaced or failed to remember the PIN number, he/she is

required to submit written request for re issuance of PIN number to the concerned
branch.

2. E-Banking Department upon receiving such request shall regenerate new PIN number
and handed over to the concerned branch. E-Banking Department must follow the
procedure mentioned in the manual to activate the card. Cardholder is levied with
PIN regeneration fee.

30
3.1.4.5 Renewal Process

1. The Visa Electron Debit Cards issued by RBB will be valid for 3 years. However,
on the anniversary of the card issuance every year, the cardholders shall be levied
with the annual fee.

2. The renewal process of debit card begins two months before its expiry date.

3.1.4.6 Closing of Card and Account

1. The debit cardholders who want to close their card should submit a written
request and surrender the card to their concerned branch.

2. The cardholders shall be levied with the card closed charge.

3. However, before closing the card, Branch shall check the balance in the linked
accounts to ascertain the availability of the card closing charge.

4. The Branch then shall charge Rs. 200.

5. The staff receiving the returned card must damage the card in front of the
customer.

6. The branch then will need to send card holders request form to E-Banking
Department.

7. Upon receiving such request form and card, E -Banking Department official must
mark the card "CLOSED" in the Card Management System and place the card in
the damage box.

3.1.4.7 Handling of Captured Cards

ATM can capture the cards in following circumstances:

 Wrong PIN tries for more than three times.

 Attempted use of expired card.

 Attempted use of blocked/negative listed card.

 Pick up instruction of the card issuer.

31
3.1.5 PUMORI

PUMORI Banking software is banking software developed by Mercantile Office Systems. It

is being used by more than 150 financial institutions including numerous Commercial Banks,
Development Banks, Finance companies and Co-operatives in more than 600 branches
throughout the nation. The continuously growing customer base of PUMORI users has made
the need for quality PUMORI manpower imperative.

PUMORI banking software is an innovative and reliable software platform designed to build
centralize solutions for banks, financial institutions and co-operative sectors. It is user
friendly, which leads towards full automation and low cost upgrade and rapid migration. The
following operations are performed using PUMORI software.

1. It is used to maintain the database of the users.

2. It is used for registering the client’s information that use internet banking.

3. It is used to verify the signature of the client.

4. It is an online real time system that provides up to date account information for
internet banking users.

The lack on using PUMORI software is that, it sometimes runs slowly and it
disturb in the performance of the system.

3.1.6 Fonebank

It is a kind of software which provides seamless integration with core banking system, online
banking software, payments networks and as well as to any existing mobile banking module
of the bank. Fonebank service enables a user friendly view of banking transactions and
provides much of the bank’s services such as;

 Account Enquiry

 Fund Transfer

 Cheque Book Request

32
  Transaction History

 Merchants Payment

 Utility Payments

Fone bank software is simple and easy to use. It secures the data of the entire consumer who
are engaged in using mobile banking services.

3.1.7 Problem solved

During the period of internship of eight weeks in the RBB, intern did many activities that are
done in various section of finance department. Intern was closely monitored by the supervisor
on the task performed and asked to consult if any difficulties arise during performing. Some
of problem solved by the intern during internship are as follows:

1. Problems regarding ATM cards such as Creation of Card, Activation of Card,

Change Card Status, Re-issue of Card, Pin Reset and Regenerate Card, Renewal
and View Card etc.

2. Membership settlement

3. Handling of captured cards

4. Problem regarding e-banking and SMS banking

5. Dispute handling

6. Problems regarding mobile banking such as Balance Enquiry, Funds transfer,

Mini Statement, Cheque Book Request, Purchase Recharge Cards, Top ups
andBills Payment etc.

3.2 Position and Responsibility of Intern

Rastriya Banijya Bank Ltd. facilitates Electronic Cheque Clearing system in this branch. ECC
system is an inter-bank cheque clearing solution. The operating rules will help the members
to perform their daily cheque clearing operation using ECC safely and efficiently, the
operating rules in this document are based in the rule book issued by the NRB. Modernizing
the banking sector in Nepal is an essential strategic objective that NRB seeks to realize by
implementing an advanced cheque clearing solution that manages the daily cheque clearing
cycle electronically. ECC is the state of the art interbank cheque clearing solution that has
replaced the manual cheque clearing solution in Nepal. It is an image based, cost effective,

33
cheque clearing and settlement solution, where the original paper cheque are transferred to
scanned images in order to be presented electronically through the secured communication
channels from the member in which they are deposited to the member on which they are
drawn resulting in a faster access to funds, lower transportation expenses and increased
cheque trust. ECC calculates the multilateral net clearing position and sends to the settlement
system of NRB for settlement of the net clearing position of the direct member. The Central
System of the clearing mechanism lies at Nepal Clearing House Ltd.

3.3 Experience in Internship

During 11 weeks of internship program it was different experience and exposure to the real
work scenario. Internee learnt about the banking sector and banking operations about RBB
and helped me to know about various kinds of information/ service offered to customers by
RBB. The internship period helped internee know how an organization can be different from
other through people resources which are inimitable to gain competitive advantage.

3.3.1 Key Skills

Entries, Posting and Operating Skills

Internee learnt to make different entries while opening the account of the customers. Internee
learnt to post the transaction in the computer. Internee learnt to enter the all information the
customers update in their account using the software called Pumori Plus.

Communication Skills

The regular interaction with the customer helped internee a lot to develop communicating
skills.

Simultaneous Study and Working Skills

The internship program made internee explore their potential and ability to work and study
parallel. internee previously believe that couldn’t take the work and study side by side but
internee internship program helped internee develop and enhance skill of studying and
working simultaneously.

Technical Skills

Before internship, internee was unable to use any of the technical instruments like printers

34
and computers (for data entry, cheque books, issuance record, and specimen signatures).
Hence, internee learnt the basic necessary skills for operating printers and computers in
internship.

3.3.2 Key Attitudes Learnt

As an intern in the RBB, internee learnt other things apart from the skills and that is attitudes.
Internee used to feel uncomfortable, nervous while interacting with anyone but after
completing my internship; internee am boosted up with confidence. Some other attitudes that
internee learned during their internship are as follows:

Confidence Build-up

Internship program really help internee to build up confidence. Internee used to feel
uncomfortable and nervous while interacting with anyone. But during the stay in the bank,
internee deal with different customers and helped them to increase the confidence level to
greater extent.

Attitude Towards Employees

As working as internee in the bank, some employees were good and some were not good in
terms of politeness and helpfulness. Many employees were helpful creating good and
working environment. Customers loved those employees and they loved to stay at the bank a
bit longer.

Attitudes towards Organizations Team Work

Internee was introduced as a team member and was assigned various activities that have to be
performed in a team. It taught internee how activities are to be performed in a team and
impact of behavior of one on the work and performance of the team member. I realized what
we studied was real, the proper team work lead to synergy benefits.

3.4 Main issues identification and resolved

During 11 weeks of internship, the problem internee faced and the solution used to solve
them in Rastriya Banijya Bank Ltd. are pointed as below.

Problem encounters

35
 1. Telling wrong amount to the customer

2. Customer come to RBB for opening a/c without complete documents

3. Customer forget their a/c no

4. Most of the times, firms documents were presented without stamp

5. Sometimes customer present document without nominees name

6. Forget their sign to be done in the cheque

7. Customer relatives come to receive the cheque

8. Teaching the new internee

Solution

1. Telling amount to customer after confirmation

2. Informing about the procedure and process

3. Searching customer a/c through name

4. Informing customer to come and complete all the document

5. After confirming the customer through the citizenship, then only tell the amount and
show signature (if forget)

6. Informing customer to tell a/c holder to come herself/ himself to receive their cheque
and ATM

Informing customer about the ATM card available

36
 CHAPTER 4: SUMMARY, CONCLUSION AND
IMPLICATION
4.1 Summary

This report has been prepared as the partial fulfillment of third semester of MBA-CL under
Central Department of Management. Rastriya Banijya Bank Limited proved to be a strong
mainstay for building up my professional career. The internship gave me the perfect opening
to plant my acquaintance in the appropriate field. It helped me to apply the year’s long
theoretical lessons into practical area. I learned to work under pressure and broadened my
knowledge, vision, ability and confidence to perform in real working upbringing. Within a
short period of time, Internee was able to work on Internal Administration Section, Customer
Service Department, Cheque Department, Electronic Cheque Clearing, ATM & file
recording, Balance Inquiry, Statement, Cash sorting, Loan filing of the Balaju Office and not
of the entire organization as a whole

It was the great experience working as an intern in Rastriya Banijya Bank Limited. There was
good communication and healthy relationship in between the different levels of staffs.
Working as an intern mainly provided an opportunity to learn about practical implication in
career building hence it is a significant platform for future career.

4.2 Conclusion

Internship plays an important role in matching the knowledge gained from theoretical
perspective of education with the practical exposure at workplace. Intern found that the
customers are valuable assets of the bank and they feel satisfied when they are behaved
properly. Their queries are needed to be answered in a friendly and proper way so as to please
and retain them in the organization. Likewise, during the internship period the intern found
that the bank has a professional working environment. The top management of the company
is highly experienced and builds control on awful situations. The experience at the bank will
surely guide in future career. The intern is grateful and proud to have had worked in a reputed
organization like Rastriya Banijya Bank Limited. The intern wants to conclude that Rastriya
Banijya Bank Limited is excellent in terms of their services despite with some pros and cons
with the issue related to customer satisfaction.

RBBL is well established bank with wide coverage over the nation so it has an ample

37
opportunity to gain competitive advantages over its competitors. RBBL has made a promise
to provide excellent services to their customer and improve their customer satisfaction by
overcoming their weakness and doing their best to retain quality services.

4.3 Implication

Internship is a really good program and recommended to my fellow friends, which helps to
enhance and develop skills, abilities and knowledge's.

Recommendations to the Organization:

On the basis of the analysis, the following suggestions can be recommended to bring
the satisfactory improvement to the existing situation:

1. Proper training and guidance should be provided to the staffs to make efficient use of
technology

2. The employee performance appraisal is the most to motivate the employees and
enhance their productivity

3. Most of the tasks are still done manually and it affects the performance of the bank.
So entire system of the bank should be computerized in order to perform work
promptly and efficiently.

Recommendations to the University

The recommendations that I would like to provide to college about the enhancement of
the program are:

1. The college representative or supervisors should visit the organization at least once to
confirm what the student is actually doing.

2. The students should be asked to submit their progress report during the internship
period which will help the college to know whether the students are provided an
opportunity to learn in the organization.

Future Internee

An internship in a bank can be a great way to gain valuable experience and make connections
in the industry. By researching the bank, being prepared to learn, maintaining a professional
demeanor, networking, and taking initiative, internee can make the most internship program
effective, internship is the great practice to test theoretical knowledge into real practical life
where internee can test themselves whether internee is fit for or not to make career in that

38
particular field, Moreover, Internee may get exposure of career guidance from experience
working professional while doing internship which can helps to develop interpersonal and
communication skills development.

39
 References

Gautam R., Gurung R., Pokharel J., Kandel R., & Sigdel S.(2014) Foundations of

Financial Institutions and Markets. Kathmandu: Ayam Publication

Rawal, D. T. (2002). Banking Supervision. Kathmandu: RBB.

RBB. (n.d.). Introduction of Rastriya Banijya Bank. Retrieved January 5, 2022, from
https://www.rbb.com.np/intro.php

Shrestha, M.K. & Bhandari, D.B. (2008). Financial Markets & Institutions. Kathmandu:
Buddha Publication

Thapa, S. (2018). An Internship Report on RBB. Kathmandu: RBB

study.com. (n.d.). Retrieved from What Are Commercial Banks? - Definition, Roles &
Functions: https://study.com/academy/lesson/what-are-commercial-banks-definition-
roles-functions.html

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