ANALYSIS OF BANKING PRODUCTS AND SERVICES OF

Rastriya Banijya Bank Limited, Itahari

By

Yogendra Prasad Dahal

PU Registration No.: 051-2-2-01097-2018
Symbol No.: 270299
Kasturi College, Itahari

An internship report submitted to the University, Faculty of Management in partial fulfillment

for Degree of Bachelor of Business Administration (BBA)

January, 2023

Itahari, Sunsari

i
Recommendation

This is to certify that the internship report

Entitled

Analysis of Banking Products and services of

Rastriya Banijya Bank Limited, Itahari Branch

Submitted by:
Yogendra Prasad Dahal

has been prepared as approved by this college in the prescribed format of the Faculty of
Management. This internship report is forwarded for examination.

Mr. Mandip Bhattarai

Supervisor

Date:

ii
Viva Voce Sheet

We have conducted the viva voce examination of the internship report

Entitled

Analysis of Banking Products and Services of

Rastriya Banijya Bank Limited, Itahari Branch

Submitted by
Yogendra Prasad Dahal

and found the internship report to be the original work of the student and written
according to the prescribed format. We recommend the internship report to be
accepted as partial fulfillment of the requirements for the Degree of
Bachelor of Business Administration (BBA).

Viva Voce Committee

Head, Research Department: Prof. Dr. Kedar Prasad Poudel ……………………

Member, Internship Report Supervisor: Mr. Mandip Bhattarai ……………………

Member, External Expert: ……………………

Date:

iii
iv
 Acknowledgement

I would like to express my special thanks to Kasturi College as well as Purbanchal University
who gave me golden opportunity to this wonderful report on the topic of product and service,
which also helped me in doing a lot of research and I came to know about so many things I
am really thankful to them.

I would like to express my sincere thanks to Mr. Mandip Bhattarai (Supervisor) and Mr.
Bhaba Nath Ghimire for their co-operation, guidance, suggestions, and their valuable time
while making this report. I would also like to thank management of Rastriya Banijya Bank
Limited, Itahari for providing me an opportunity to work as an intern in Products and
Services. I am also thankful to Mr. Barun Kumar Karn, Branch Manager and staffs of RBB,
Itahari Branch for their support and guidance during internship and data collection for report
writing.

I would like to thank all the staff of Rastriya Banijya Bank Limited for their kind co-operation
and help during internship period. All the employees were highly supportive and motivating
which made even easier to cope with the working environment and to gain practical
experience and learn lessons.

Yogendra Prasad Dahal

BBA 7th Semester

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 Table of Contents

Cover Page i
Recommendation Sheet ii
Viva Voce Sheet iii
Certificate of Internship Training Organization iv
Acknowledgement v
Table of Contents vi
List of Tables viii
List of Figures ix
Abbreviations x
Executive Summary xi

Chapter I: Introduction
1.1 Overview of the Organization 1
1.2 Brief History 4
1.3 Nature of the Organization 4
1.4 Business Volume 6
1.5 Nature and Number of Employees 6
1.6 Products and Services 7
1.7 Organizational Structure of RBB, Itahari Branch 16
1.8 Overall and Concerned Department 17
1.9 Objective of the Study 19
1.10 Studying the Chosen Organization 20
1.11 Specific Objectives 20
1.12 Methodology 20

Chapter II: Observations

2.1 Functions of Concerned Departments 23
2.2 Detail of Assigned Work Responsibilities 23
2.3 Problem Encountered While Fulfilling Work Responsibilities 26
2.4 Data Collection for Specific Objectives 26
Chapter III: Analysis and Review

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 3.1 Analysis of Data Collection on Specific Issues 28
3.1.1 Data presentation and analysis of different deposit account 28
3.1.2 Data presentation and analysis of different banking services 29

3.2 Critical Analysis of the Theoretical Concepts Relating to Practical

Experiences in the CSD (Customer Service Department) 31
3.3 Knowledge Gained from the Work Assigned 31

Chapter IV: Conclusion and Recommendation

4.1 Contribution of Internship in Knowledge Gain 33
4.2 General Comments and Suggestions for the Bank 34
References 35
Annexure 36

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List of Tables

Table 1 Glimpse of Rastriya Banijya Bank (Overall) 2

Table 2 Management Committee of Rastriya Banijya Bank ltd. 2
Table 3 Profile of RBB, Itahari 5
Table 4 No. of Customers of RBB, Itahari 6
Table 5 Number of Employees and their Position 7
Table 6 Saving Account Products with Minimum Balance and Interest Rate 10
Table 7 Loan Products with Premium Rate 12

viii
List of Figures

Figure 1 Organizational Structure of RBB, Itahari 16

Figure 2 Research Methodology 22
Figure 3 Number of Depositors in Different Accounts by using Bar Diagram 28
Figure 4 Number of Different Banking Services Users Shown in Bar Diagram 29

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Abbreviations

A/C Account
ABBS Any Branch Banking System
AD Anno Domini
ATM Automated Teller Machine
BBA Bachelor of Business Administration
BFIs Bank and Financial Institutions
BLB Branchless Banking
BS Bikram Sambat
CSD Customer Service Department
C-ASBA Computerized Application Supported by Blocked Amount
E-Banking Electronic Banking
F/Y Fiscal Year
GON Government of Nepal
KYC Know Your Customer
LTD Limited
NARC Nepal Agricultural Research Council
No. Number
NRB Nepal Rastra Bank
NTC Nepal Telecommunication Corporation
RBB Rastriya Banijya Bank
RBBL Rastriya Banijya Bank Limited
SFAF Student Financial Assistant Fund
SMS Short Message Services
SWIFT Society for Worldwide Interbank Financial Telecommunication
WWW World Wide Web
% Percentage

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 Executive Summary

Internship report writing is the systematic process, which helps to understand the way
organization conducted and operated. It is designed for the balance between theoretical and
practical knowledge, which is very essential for developing the professional skills. Thus, the
internship in BBA 7th semester provides the student knowledge by getting familiar with
organizations and departments. In this regard, internship was done in Rastriya Banijya Bank
Limited, Itahari branch.

The report is mainly focused on Products and Services offered by Rastriya Banijya Bank
Limited. Before that, history of organization, its nature, structure, overall departments and
volume of organization are presented to introduce the organization. Further, the objectives of
the study, specific objectives and methodologies to obtain those specified objectives are
clearly defined. With the objective of understanding the study effectively, analysis and review
have been described based on the data obtained during the internship period. They are
collected from primary and secondary sources. For the analysis, tabular and bar diagram
presentation is used to compare the data obtained from internship period. At last, based on the
analysis, it is concluded that, the products offered by the bank is understandable easily by all
customers and they are very satisfied from the services provided by the bank.

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 Chapter I
Introduction

1.1 Overview of the Organization

As per the official website of RBBL, Rastriya Banijya Bank Limited (RBBL) has a history of
serving its customers far and wide across the nation for more than half a century. The bank
then fully owned by Government of Nepal, was established on 10 Magh 2022 (23 January
1966) under the special statute "Rastriya Banijya Bank Act, 2021" and had operated under
"Commercial Bank Act,2031” until it was re-registered as public limited company on 6
Baishak 2063 (19 May 2006). At present, the Bank operates as "A" class financial institution
licensed by Nepal Rastra Bank and carries out commercial banking activities as per the
provisions of the "Bank and Financial institutions Act 2073," (2017).

RBBL – which has made glorious history of contributing for the monetization of the
economy, eliminating dual currency in the market, initiating preliminary financial literacy,
help flourish industrial, commercial and financial sector of the country has now emerged as a
modern and strong financial institute of the country.
(http://bankkosamachar.com/bfis/rastriya-banijya-bank-limited/) With 3000+ hands, it has
expected its wings in the most part of the country through multiple distribution outlets of
more than 269 branches, 93 branchless banking (BLB) and more than 203 ATMs. The bank
has altogether 19 departments in its head office. It has high public confidence, reflected in
the highest deposit base and growing demand for branch establishment in the various parts.
(www.rbb.com.np)

Rastriya Banijya Bank has become the largest commercial bank of Nepal. Being one of
pioneer bank of the Nepal, it carried out lots of financial and non-financial activities through
its significant in the best use of its resources to enhance the production, income and
employment opportunity. Similarly, the bank has been working as a chief administrator in the
Educational Assistance Project (run with the assistance of World Bank) aimed at assisting
poor and diligent students learning at higher secondary and bachelor level.

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Table 1
Glimpse of Rastriya Banijya Bank Limited
Title Description
Type Government owned
Established 10thMagh, 2022
Authorized Capital 10 billion
Paid-up Capital 14.94 billion
Central office Singhadurbar plaza, Kathmandu
Branch office 269
Provincial office
Province 1 56
Madhesh Province 34
Bagmati Province 65
Gandaki Province 31
Lumbini Province 38
Karnali Province 22
Sudurpaschim 23
ATM Service 203
Branchless Banking 93
Source: www.rbb.com.np

Table 2
Management committee of Rastriya Banijya Bank Limited
Kiran Kumar Shrestha Chief Executive Officer
Devendra Raman Khanal Deputy Chief Executive Officer
Saraswati Adhikari Deputy Chief Executive Officer
Debesh Prasad Lohani Deputy Executive Officer
Bimal Dangol Deputy Executive Officer
Vinaya Raman Poudel Deputy Executive Officer
Pawan Regmi Deputy Executive Officer
Durga Kumari Kandel Deputy Executive Officer
Hemraj Kharel Member Secretary
Source: www.rbb.com.np

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Vision of RBB
“The most credible bank for one and all, always contribution towards Nation’s prosperity.”

Mission of RBB
“We strike to enhance the quality life of all Nepalese by eliminating barriers to financial
access and helping them achieve their full potential, and by ensuring safe, innovative and
affordable financial service, through vast networks of efficient centers, socially responsible
business processes and empathetic human resources.”

Objectives and Activities of RBB

The primary objective of RBB is to provide banking services throughout the Nepal and
contribute in the socio-economic development of country. Some objectives/Activities of RBB
are:
 Focus on providing innovative financial services.
 Increase in capital base of the bank by meeting the minimum capital requirement.
 Business growth and increase in market share.
 Enhance operational efficiency.
 Sustainable increase in profits.
 Focus on empowerment of deprived class

Strategy of RBB
“Our envisioned intention is to become the leading provider of diverse financial services to
all Nepalese”.

Core Value
 Respect people and their community.
 Effectiveness and efficiency in our business process.
 Value all kind of resources.
 Responsible and accountable for our deliveries.
 Honesty, integrity and creditability in each of our actions.

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1.2 Brief History

Rastriya Banijya Bank is one of the pioneer banks in the country, with a history of more than
a half century. Rastriya Banijya Bank limited is fully government owned and largest
commercial bank in Nepal. RBB was established on January 23, 1966 A.D. (Magh 10, 2022
BS) under the RBB Act 2021 with an initial authorized capital of Rs.10 million. It was
inaugurated by late King Mahendra Bir Bikram Shah Dev. 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. (www.rbb.com.np)

The growth and development of the country is possible only when competitive banking
services reach each and every corner of the country. However, as the central bank, Nepal
Rastra Bank had its own limitations and as a commercial bank it was not logical for Nepal
Bank Limited to go to unprofitable sectors. RBB was licensed by NRB as ‘A’ class bank to
perform commercial activities. With the merger of NIDC bank on may2 2018, RBB becomes
largest commercial bank of Nepal.

1.3 Nature of the Organization

Rastriya Banijya Bank, Itahari Branch was established on 10th Magh, 2050 B.S. under the
supervision of its central office. RBB, Itahari is situated at Ithahari-4, Purbaline opposite to
Itahari Mall and near to Itahari Police Station and lies in the heart of city. The bank code of
this branch is 255. The current branch manager of this branch is Mr. Barun Kumar Karna.
There are altogether 23 staffs including 8 ladies and 15 gents working in different post
(Permanent and contractual).

The bank provides various banking products and services like: accepting deposits on different
accounts, providing loans, ATM services, mobile banking, ABBS, remittance, overdraft
facilities etc. This branch stands on top in terms of highest ATM users and mobile banking
users outside Kathmandu valley. This branch accepts higher number of customer as growing
commercial activities in Itahari. This bank provides varieties of banking products and
services which help to gain competitive advantage over other competitors. They focus on
customer satisfaction. All the staffs are discipline to their duty and are satisfied with the work
4
and facilities of bank. This branch stands at no 1 position in terms of deposit collection in
Province 1.

Table 3
Profile of RBB, Itahari
Title Description
Date of Establishment 10th Magh, 2050 B.S.
Location Itahari-4, Purbaline
Branch Code 255
Branch Manager Barun Kumar Karna
No. of Departments 7
Total no. of Employees 23
Website www.rbb.com.np
e-mail itahari@rbb.com.np
SWIFT Code RBBANPKA
Phone No. 025-582040, 587075
Source: Internal Record of RBB, Itahari Branch

At present RBB is providing various banking services to satisfy its customer. They are as
follows:
a) Deposit Facility
b) Loan and Advances
c) Government Transactions
d) Remittance
e) Branch less Banking
f) ATM
g) E-Banking
h) Mobile pay
i) SMS Banking
j) Provision of salaries to the government employees
k) Provision of pension to the government employees

So, RBB, Itahari is established to provide the banking services to the people of Itahari City
and its surrounding areas. It is one of the largest commercial bank of Itahari. It helps to
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mobilize the economic surplus which in turn provides a great aid in development of the
country. It has performing an outstanding role to meet the growing competition and to satisfy
its customers.

1.4 Business Volume

Being the largest commercial bank of Nepal definitely collects large volume of deposit from
customer and sanction large volume of loan as well. As per the data published by RBBL, the
total deposits of RBBL from the customer during the period of 2078/79 is Rs.
259,354,055,533 while its amount of lending to customer is Rs 212,049,558,981. Similarly,
amount of lending to BFIs is Rs 16,574,188,753 whole over the Nepal. While the total
deposit of RBBL, Itahari branch is Rs 2,205,596,228.68 and lending Rs 1,705,519,980.29
during the fiscal year 2078/79. RBBL Itahari branch has near about 41,302 customers, which
are presented in following table.

Table 4
Number of customers of RBBL, Itahari branch
Types of account Number of customers Percentage
Saving account 31559 76.41%
Fixed deposit account 1174 2.84%
Current account 1684 4.07%
Pension account 2585 6.26%
Social security account 4300 10.42%
Total 41302 100%
Source: Official Record of RBB, Itahari Branch

RBB Itahari branch has near about 41,302 customers among them 31,559 customers have
saving account, 1174 have fixed deposit account, 1684 customer have current account, 2585
customers have pension account and 4300 customers has social security account.

1.5 Nature and Number of Employees

RBB, Itahari branch is operating with 23 staff members including 8 ladies and 15 gents
working in different post. The staffs of RBB, Itahari are co-operative and sociable towards

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their customer. There is good relationship between the staffs. They work as a family member
to make working environment friendly.

Table 5
Number of Employees and their position
Level Male Female Total
Officer level 3 1 4
Non officer level 1 5 6
Contract 7 2 9
Security Guards 4 0 4
Total 15 8 23
Source: Official Record of RBB, Itahari Branch

RBB, Itahari branch has total of 23 employees among them 4 are officer level, 6 are non-
officer level, 9 are without level and 4 are security guards.

1.6 Information about Deposit Products and Banking Services of RBB

RBB offers a wide range of products and services to its customers. RBB, Itahari branch,
delivers various types of banking product and services to satisfy its customer. Major products
and services offered by RBB are:

A. Deposits products
RBB offers wide range of deposit products to its customers. The interest rates on each deposit
product depend upon the type of account. Customer can open any type of account after
fulfilling documentation procedures and submitting required documents. The different types
of deposit products offered by RBB:

1. Current Deposit
Especially current deposit are designed for those people who does frequent banking
transactions such as frequently withdrawing and depositing amount from their respective
accounts. There is no any restriction on number withdraw and deposit. The current account
can be opened only in firm’s or company’s name. This account is non- interest bearing

7
account. They are offering various flexible payment methods to allow customer to distribute
money directly to others. In this account there is no provision of interest. The minimum
balance for opening this account is Rs.3000. Some features of current account are:
 Withdrawal below minimum balance
 Extended banking hours in Kathmandu valley branches
 Minimum amount of deposit while opening account
 Cash Management
 Free cheque book

2. Fixed deposit account

RBB has introduced several innovative schemes under fixed deposit. Fixed account are for
those people who wants to invest their money in risk free environment. Fixed deposit have
fixed maturity period. It is one of the safest place to invest money. The funds deposited in
this account can’t be withdrawn in between. If the customer withdraws then certain charges
are to be paid to bank as compensation. This account offers higher rate of interest than saving
account. Interest rate depends upon the maturity period and amount of money. Interest is
provided quarterly and tax is deducted at source from the interest. The amount of interest on
fixed deposit is transferred to saving account of depositor. The yield to interest on this type of
deposit is relatively higher than other type of saving deposit but it also depend on maturity
period and amount of money. Some features of this account are:
 Attractive interest rate
 Fixed maturity period
 Convenient account opening
 Wide option of tenure
 Auto renewal possible
 Loan facility up to 90% of deposit amount
 Free cheque book

3. Saving account
RBB saving account is a deposit account held at a bank maintained by a customer for the
purpose of accumulating funds over a period of time while earning an interest. Saving
account are those people who wants to save small amount of money from their regular
income. RBB offers different saving account facility to develop saving habits of individuals

8
and households. The minimum balance of Rs1000 must be maintain by the customer in this
account. In this type of account depositors can withdraw the deposit except minimum
balance. Some features of savings account are:
 Reasonable interest rate
 Affordable balance
 Unlimited withdrawals and deposit
 Withdrawal below minimum balance
 Extended banking hours in Kathmandu valley branches
 Free cheque books
 Free statement
Savings products offered by RBB, with their minimum balance and interest rate are shown in
following table.

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Table 6
Saving Account Products with minimum balance and interest rate
S.N Types of saving account Minimum balance Interest rate
.
1 Normal saving account RS.1000 7.133%
2 RBB special saving account RS.5000 9.133%
3 RBB golden saving account RS.5000 9.133%
4 RBB diamond saving account RS.5000 9.133%
5 Karmayogi bachat khata RS.5000 9.133%
6 Mahalaxmi bachat khata RS.5000 9.133%
7 Chunamuna bachat khata RS.500(RS.500 minimum 9.133%
deposit per month)
8 Teachers saving account RS.500 9.133%
9 GON pensioner’s account 0 9.133%
10 RBB pensioner’s account 0 9.133%
11 Social security saving account 0 9.133%
12 Armed police saving account 0 9.133%
13 Nepal police’s salary account 0 9.133%
14 University pensioner’s saving 0 9.133%
account
15 NTC pensioner’s saving account 0 9.133%
16 NARC pensioner’s saving account 0 9.133%
17 Dirgayu saving account RS.1000 9.133%
18 RBB employee saving account RS.100 9.133%
19 RBB remittance saving account RS.0 10.133%
Source: www.rbb.com.np

Saving accounts except Chunamuna Bachat Khata can be opened by all Nepali nationals by
fulfilling necessary documentation process and by submitting the required documents.
Chunamuna Bachat Khata is designed for the minor children. In order to open such account
there must be the person who conduct transaction on the behalf of minor until he/she reaches
at majority age. In this account the guardian of account holder should deposit Rs500 every
month in this account.

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4. Karmayogi Khata
Similarly ‘karmayogi khata’ is especially designed to target those people who wants save
money for forming capital for entrepreneurial purposes. The minimum balance for opening
this account is rs.5000.

4. Mahalaxmi Khata
Mahalaxmi khata is also anther type of products in RBB which especially focus on female or
housewives who want to save small amount of money for their future needs. The minimum
balance required to open this account is Rs 5000. It has 9.133% interest rate.

5. Chunamuna Khata
This type account is designed for the children who are at minority age. It is only for those
people who are below 16 years. It can be access only by the a/c holder when he/she reaches at
majority age. In this account, the accountholder must deposit at least Rs.500 per month.

6. Nepal government pension saving deposit.

This account is opened for those people who receives pension from Nepal. There is no need
of minimum balance while opening account. The amount of pension is deposited in this
account.

B. Loan and advances

RBB provides loans such as consumer/personal loan, corporate loan and other categories of
loans. Consumer/personal loans includes various forms of loans that are provided to the
individual consumer for their personal use such as RBB home loan, RBB auto loan, hire
purchase loan, education loan, loan against gold and slivers etc. Likewise corporate loan is
provided to the business houses or business personal for business use like fixed term loan,
working capital loan, overdraft, demand draft, letter of credit, bonds, guarantees etc. The
other forms of loan provided by bank includes: consortium loan, housing or real estate loan,
industrial or commercial loan, priority sector loan and RBB project loan. The loan products
offered my RBB with their premium rate are shown in the following table.

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Table 7
Loan Products with Premium rate
S.N. Loan product Premium rate (%)
1 Working capital loan
Overdraft 3 to 5%
Hypothecation 3 to 5%
Pledge loan 3.50 to 5.50%
Demand loan 3 to 5%
2 Term loan
Industrial/ commercial loan 2 to 4%
Housing/ Real estate loan 3 to 5%
Loan against gold and silver 6%
Loan against RBB fixed deposit Coupon + 2%
Loan against government bond 0.25 to 1%
Priority sector loan 2 to 4%
3 Deprived sector loan 2%
4 Subsidies loan 2%
5 Agriculture loan (other than subsidies loan) 3 to 4%
6 Trust receipt/ import loan 2.50 to 4.50%
7 Export loan 1%
8 Export refinancing As per NRB directives
9 Hire purchase loan 3.50 to 5%
10 Home loan
Up to 5 years 3.75 to 4%
Up to 10 years 4 to 4.25%
Up to 15 years 4.25 to 4.50%
11 Mahalaxmi home loan
Up to 10 years 4 to 4.25%
Up to 15 years 4.5 to 4.50%
12 Electric vehicle loan 3 to 4%
13 Personal loan 3.50 to 5%
13 Vehicle loan 5%
14 Pensioner loan 4%
15 Teacher loan 3.50 to 5%
16 Education loan 3.50 to 5%

12
 17 Mortgage loan 4 to 6%
Source: www.rbb.com.np

C. Banking Services of RBB

RBB is providing different banking services to its customer’s for their convenience and to
survive and compete in the marketplace. Banking services plays vital role in establishing
goodwill of the bank and helps in achieving competitive advantages among other competitors
in the market. Therefore Rastriya banijya bank ltd provides different banking services to its
customers. Some services provided by RBB are:

1. ATM/Card services
An Automated Teller Machine (ATM) is an electronic banking outlet that allows customers
to complete basic transactions such as withdrawing money from their personal account,
balance enquiry etc. RBB is a visa associate member bank has launched issuance of Visa
Electronic Debit card from all of its branches. Bank provides issuance electronic Debit Card
from all branches to customer to enable 24hrs ATM facility. Some functions offered at RBB
ATM are:
 Fast Cash.
 Visa Domestic
 Visa international
 Cash Withdrawal.
 Enquiry (Balance enquiry and Statement enquiry).
 PIN change.

2. Mobile banking
Rastriya Banijya Mobile Bank provides convenient mechanism and quick access to banking
services RBB customers from their mobile devices. The system is SMS based which can be
used by the both Nepal Telecom as well Ncell telecommunication. The mobile banking
customer can keep an eye on their financial transactions. For using this service customer
should fill up mobile application form. Bank charges Rs.200 per year for this service. Some
main features offered are:
 Check balance and statement anytime.

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  Get instant SMS alerts on every transaction.
 Online shopping.
 Payments on retail outlet.
 Recharge/Top-up/Pay utility bills payment (NTC, NCELL, ADSL, and Dish
Home etc.)
 Transfer funds from one account to another.

3. ABBS
RBB has been providing Any Branch Banking Services from all branch across the country.
ABBS is the facility provided to customer by banks for deposit and withdrawal of money
within the same network of the bank, with or without service charges. RBB has been
providing ABBS from all branches across the country. Through this service a customer from
any branch of RBB can easily deposit their money in any branch and withdraw their money
from any branch.

4. Branchless banking (BLB)

RBB offers a Branchless Banking services to the customer who do not have access to the
branches of the bank. It increases the access of financial services to the unbanked
communities. Branchless banking refers to providing financial services by financial
institution to its customers outside traditional bank premises by using delivery channels like:
retail agents, mobile phones etc. The basic facilities provided are as follows;
 Balance Inquiry and Mini-statement
 Cash withdraw
 Cash deposit
 Fund transfer

5. Remittance
Remittance deals with either the transfer of money from one bank to other bank or from one
branch to another branch to their customers. RBB also provides remittance service facilities
of transferring fund through online computer system. This special feature helps the tourist
and especially the Nepalese people who worked abroad to transfer funds to Nepal when
required. The receiver can get the transferred money upon the completion of a simple form
requirement without any hassles and with no time. Remittance service is provided through

14
draft, SWIFT, and telegraphic transfer, mail transfer, fax transfer etc. Activities performed
are;
 Receiving and sending faxes in the other branches.
 Remitting money to different branches using RBBL remit.
 Receiving amounts remitted from different branches.
 Verifying the accounts where the money had been sent and transferring amount to
respective account.
 Authenticating the beneficiary and making cash payment.

6. Internet banking
RBB facilitates banking with a click of a mouse by which customer can track account from
anywhere in the world. It provides 24/7/365 access to the baking facilities for customer.
Some features offered by RBB are:
 Balance enquiry
 Balance transfer
 Third party balance transfer
 Online purchase/payment etc.

7. Locker
Locker is a furnished to the individual and institutional customers who prefers to safe
deposit. The Locker has been the first choice for the safest custody of the valuable goods
with flexibility of time to store and take away when required. The bank serve as the security
entity by providing the locker facility making customer ensure that their valuable properties
are safe. The customers charge certain fees in return of such facilities.

8. Trade financing
Through the wide spread and strong network of correspondent banking relationships, RBB is
offering various products related to international trade according to the need of customer.
The major products and services in this regard are:
 Letter of trade credit (Local, Import and Export)
 Various types of Bonds/Guarantees
 Collections
 Short-term trade financing

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9. SFAF services
Student Financial Assistance fund Development Board and Rastriya Banijya Bank signed
agreement for carrying out banking and consulting services for the administration of student
financial assistance trust fund on the 21st November, 2008. This program covers all
community secondary and higher secondary schools. The financial support (scholarship and
loan) will be provided to students studying in higher secondary and higher education level
after conducting proxy means testing of students studying in grade 10 and 12. The main
objective of program is to facilitate work-study initiative. Some requirements for account
opening in RBB for SFAF are:
 Photocopy of Nepalese citizenship
 Photocopy of transcript of the mark sheet
 Recent 3 photos – passport size
 Recommendation letter from the college/campus
 A commitment note (kabuliyat-nama) of the students

1.7 Organizational Structure of RBB, Itahari Branch

Branch Manager

Assistant
Branch Manager

CSD Remittance Administration Pension

Department Department Department

Loan/credit Teller/Cash IT
Department Department Department

Teller 1 Teller 2 Teller 3 Teller 4

Figure 1
Organization Structure of RBB, Itahari

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Source: Internal Record of RBB, Itahari Branch

1.8 Overall and Concerned Department

Different departments are running under Rastriya Banijya Bank, Itahari Branch. In this
branch, there are altogether two department, i.e. operation department and credit department.
These departments perform the different functions to satisfy the customers. The different
departments of RBB, Itahari are:

1. Operation department
Operation department ensures that the production process is completed from start to finish.
These production processes need to line up with the goals and functions of other departments
within a company. Operational department are responsible for managing activities that are
part of delivering effective services. Under this department, there lies three other department
that are given below;

a) Customer service department (CSD)

The customer service department plays an important role in the survival and continued
functioning of bank. CSD is the front desk of organization and most important department of
RBB. In this department they are responsible for providing basic banking services. It is the
enquiry sector and is established for customer’s convenience. The customer can take any type
of information from this section. So, the employees of this department must be capable to
handle every type of customers. This department is responsible for dealing with different
customers, opening the accounts and so on.
Task, duties and accountability towards CSD
 To response to the customer’s enquiry as of their necessity.
 Maintaining good public relation.
 Receiving customer calls.
 Updating KYC.
 To assist the customer in opening, maintaining and closing different accounts and
filling up forms.

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  To issue new cheque book and statement of account.
 To sell other banking products like: ATM, M-banking etc.
 File management.

b) Cash department
In this department all monetary activities are carried on such as accepting deposit amount,
providing money to their customer by receiving cheque etc. This section is also responsible
for maintaining daily record of transaction within its periphery. It is the most important
department of the bank that cash department have direct interaction with customers.
Task, duties and accountability towards the cash section are:
 Receive the cash from the depositors and deposit it to the respective account.
Deposit money only after it matches as tally with the deposit voucher.
 Receive the cheque, verify and examine the signature of the respective account
holders.
 Make the payment of cash on the basis of cheque, drafts, bills payable and other
payment vouchers and secure them in well-managed ways.
 Maintain the amount of liquidity after the daily transaction ends.
 Manage all the cash related transactions and handover the responsibility to the
concern people.

c) Remittance department
This department is responsible for transferring money from one place to another through
various channel of banking. Remittance is one of the functions of RBB. Remitters from any
part of the world can send money from any bank to an account at RBB. The purpose of
remittance is to move funds from sender to receiver. They work very closely with the cash
department. The originating bank will send the money through one of RBB’s correspondent
bank. The remitters must provide the following to the sending bank:
 Beneficiary’s bank a/c number.
 Beneficiary’s branch name or address and
 Beneficiary’s bank (i.e. RBB-SWIFT Code RBBANPKA)

d) Administration department

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This department looks upon overall activities of the bank. It does the purchasing work of the
bank. The stationeries are purchased and are distributed from the administration department.
The letters and documents of the bank are sent from their department and they are received
too. It prepares profit and loss account. It looks after the salary, bonus, pension etc. of the
employees working in this bank.
2) Credit department
The main function of credit department is to provide loans and advances to their customers.
Credit department plays a critical role in managing accounts receivable portfolio risk to
protect potential losses and help bank to sell more products and services. This department
provides different types of loan such as home loan, education loan auto loan, term loan etc.

Loan Products

RBB offers a variety of loan products to support financing needs of individuals and business
firms. Some of the loan products offered by RBB are:
 Business loan
 Housing loan
 Vehicle loan
 Hire purchase loan
 Educational loan
 Apartment loan
 Loan against gold
 Loan against fixed deposit receipt
 Loan against the government bond
 Loan against shares
 Loan against the first class bank guarantee
 Teachers loan
 Personal loan
 Rastra sewak loan
 Agricultural loan

1.9 Objective of the Study

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The objective of the study encompasses two major parts as general and specific objectives. It
provides platform for the students to use their theoretical knowledge into practical
experiences. The general objectives of study were:
 To explore the applicability of theoretical knowledge in the practical workplace.
 To gain working experience in banking industry and activities performed by it.
 To get familiar with real work environment.
 To know about various financial products and services provided by bank.

1.10 Studying the Chosen Organization

The main purpose of doing internship to RBB, Itahari branch are given below;
 ‘A’ class commercial bank licensed by Nepal Rastra Bank.
 Fully government owned bank
 Having large number of customers.
 Boost level of confidence and ability to handle customer.

1.11 Specific Objectives

The specific objectives are as follows:

 To gain knowledge regarding different products and services.
 To assists in enhancing the managerial as well as communication skills.
 To analyze the trend of different banking products and services.
 To know the satisfaction level of customers regarding products and services offered
by the bank.
 To know the product and services mostly used by the customers.

1.12 Methodology

Methodology is a way to find out the result of a given problem on a specific matter. It is the
design process for carrying out research or the development of a procedure.
(writingguide.methodology).These studies were done under RBB, Itahari Branch. The report
has been prepared on the basis of two month internship experience gained at customer service
department. Interaction with the staffs, operational knowledge gained and personal

20
observation are the major source of primary data for the study. Secondary source of data are
like website of bank, previous internship report and the bank’s annual report etc. The
following are the sources of research methodology that are followed for preparing this report

 Primary sources: Primary data are those data which is collected for the first time
from the field of inquiry. Primary data are collection of data from regards its
materials. Primary data used in this internship report are gathered from the staff of
RBB.
 Guidelines
 Feedback of customers
 Personal observation
 Discussion with bank officer

 Secondary sources: Secondary data is defined as data collected earlier for a purpose
other than the one currently being pursued. Secondary data are often in a form of
public data but the unpublished data. Secondary data were obtained from the various
ways:
 Published journal
 Annual report
 Unpublished report of RBB
 Different statement

21
 Organization Selection

Internship

Information Collection

Secondary Primary Source

Source

Data Presentation, Analysis and

Interpretation

Preparation of Report

Figure 2
Research Methodology

22
 Chapter II
Observation

2.1 Functions of the Concerned Departments

During my two months period internship, I have worked in Customer Service Department.
CSD is the most important department that deals directly with customer. .
The functions of customer service department are:
 Maintaining positive public relation and company culture.
 Handling customer queries.
 Building good customer relation.
 Providing necessary information of bank to the customers.
 Dissemination of information relating to various banking products and services
available to satisfy needs of customers.
 Providing different forms like: account opening, KYC, mobile banking etc. according
to customer requirement.
 Opening an account.
 Updating KYC form.
 Closing an account.
 Issuing VISA/ATM cards.
 Issuing statement of transaction.
 Issuing cheque books.
 Signature update.
 Balance enquiry.
 Scanning documents.
 Filling voucher, cheque and forms for illiterate people.
 Filing the documents.

2.2 Detail of Assigned Work Responsibilities

During the two month internship period, I was assigned on Customer Service Department.
While working as internee in RBBL Itahari branch. Here the intern has to handle the CSD by

23
themselves. So the work responsibilities that were assigned to me on CSD during my
internship period are mentioned below;

Handling customer queries

CSD is the front desk where intern had to handle the customer queries. Intern had to deal with
the various queries raised by the customers themselves because CSD is handled by only
interns in RBB. It was quite challenging at the beginning because we had to be fully
acquainted with all information regarding products and service. As an intern we had to
provide the information relating to documents necessary to open an account, features of
different accounts, mobile banking, ATMs, new products and services introduced, problem of
customers and so on. After regularly working for some days it later build the confidence.

Balance enquiry
Balance enquiry is the frequent task that has to be performed in CSD. The balance enquiry
process is associated with customer account and used to check the customer amount. More
than 50 percent of CSD visitor customers does balance enquiry. The balance information is
not allowed to provide other than account holder.

Opening an account
Opening a new account is the main function of CSD. Before opening new account a
customers should fill up details information and bring other necessary documents such as
passport size photo, citizenship photocopy, electricity bill etc. It is the most frequent activity
done in this department. Intern had to open different accounts in the system (Pumori) like:
saving, current, social security etc. other than fixed accounts and loan accounts etc. Customer
entitled to open various account are supplied with contract paper named account opening
form by bank. This form serves both the purpose of details of customer and contract between
customer and the bank. While opening new account presence of account holder is necessary.

Procedure of account opening

 Ask the customer which type of account he/she is willing to open then provide
account opening form to the customer according to it.
 Receive duly completed account opening form along with the signature card.

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  Check the application form filled by customer and see whether all the required
information is properly filled or not, if not assist them in filling details.
 Verify photocopies of documents with original document.
 Fill the application details in Pumori, account opening software.
 Send the form along with account opening customer to the operation in charge for
verifying and approval of account.
 After verification, CSD is responsible for entering additional details, after then
account number is given to the customer and customer have to deposit the minimum
balance.
 After customer deposits the minimum balance, provide cheque book by verifying
deposit slip.
 Scan and upload signature card in the system which includes signature, photo and
stamp (if current account).
 Keep the record of account opened in account opening register and do filing.

Printing and issuing cheque book

Printing and issuing cheque book to new and old customer is the responsibility of CSD. A
cheque is written order to bank made by account holder to pay certain sum of money to the
specified person or party of the cheque. Intern had to print the cheque. While requesting new
cheque by old customer requisition slip must be provided by customer with their authorized
signature. While issuing new cheque we were told to be strict and observe the signature very
carefully.

Providing bank statement

Bank statement provides detail transactions that were already done by the customers. It
provides information of transaction made by customer. While working in CSD, we have to
provide bank statement on the request of a/c holder or authorized person.

Other miscellaneous activities

Other miscellaneous activities includes;
 Update KYC
 Providing information about different banking facilities and services.
 Attending customer queries in polite manner.

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  Distribute and collect ATM and mobile banking application.
2.3 Problem Encountered While Fulfilling Work Responsibilities

Some of the problems encountered in CSD, during the internship period are as follows:

 Due to lack of complete knowledge of bank and its working procedure, interns lack
confidence while dealing with customer request.
 Customers are having the problems related to poor information dissemination and
confusion regarding e-banking services in RBB.
 Problem related to manufacturing of ATM machine which leads to great
dissatisfaction among customer.
 Poor internet connection while doing work.
 Unavailability of photocopy machine in RBB, due to which some customer used to
become angry for not providing service as private banks.
 Difficult to handle customer anger and complaint due to slow working procedure.

2.4 Data Collection for Specific Objectives

Data collection is one of the crucial stage in preparing a report. The entire report is prepared
on the basis of data that have been collected by the researcher. The data and information
collected for the internship report is based on both primary and secondary data.

I. Primary sources: Primary data are original data gathered to solve the problem and
considered at the time. It includes direct personal interview with the different managerial and
non-managerial employees. It is also called field report or firsthand data gathered by
researcher for the need of their study. Primary data were collected during the internship
period through:
 Personal observation
 Face to face conversation with the clients.
 Discussion with bank officer
 Feedback of customers
 Direct involvement in the general banking activities of the bank.
 Customers survey

26
II. Secondary sources: Data collected from secondary source are second hand and are not
original one. During the preparation of internship report secondary data played a vital role.
Secondary data were collected through:
 Annual General Report gathered from RBB.
 Online data from official website of Rastriya Banijya Bank Ltd.
 Information gathered from publication and journals, articles etc.
 Relevant journals and research paper.

27
 Chapter III
Analysis and Review

3.1 Analysis of Data Collection

Data analysis and review is the crucial part of the report. This chapter entails the details and
structured analysis and personal interpretation of the activities performed during the
internship in the bank with different facts and figure. This help to show the clear picture of
the firm. In this section, the data are presented through the help of tables, charts, diagrams
etc.

3.1.1 Data presentation and analysis of different types of deposit accounts. The data and
information regarding different deposit products of RBB, Itahari branch such as current a/c,
saving a/c, social security a/c and pension a/c during 2 months of internship period are
presented below:

Number of account opened

1000
885
900
800
685
700 620
600 525
500
400
300 265
200 160 170
89 81
100 13 6 8 19 11
3
0
1st month 2nd month Total
No. of Account Opened

Saving Account Current Account Pension Account

Social Security Account Total

Figure 3
Number of depositors in different accounts by using bar diagram
Source: Annex A

The bar diagram represents the number of customers in each respective deposit accounts. The
total number of customers who hold saving account, current account, pension account, social

28
security account are 685, 19, 11, and 170 respectively in two month internship period. It
clearly shows that the number of depositors in saving account are more than current, pension,
fixed deposit account. This figure shows that the maximum number of depositors of this
branch are belonging from saving account. After saving account the second highest number
of accounts opened are from social security account. And current account and pension
account are least number of accounts in comparison to others accounts.

3.1.2 Data presentation and analysis of different banking services

No. of Mobile Banking and ATM users

1200 1116

1000 930

800
579 537
600
476 454
400
186
200 103 83
0
Mobile Banking ATM Total

Total number of users 1st month Total number of users 2nd month
Total number of users Total

Figure 4
No. of Mobile Banking and ATM users in 2 month period
Source: Annex B

The bar diagram shows the number of customers who uses different banking services such as
mobile banking and ATM. According to the figure the total number of customers who uses
mobile banking and ATM services are 579 and 537 respectively in two months internship
period. The figure clearly shows that the number of mobile banking users are more than ATM
users. This figure clarifies that most of the customer use mobile banking service in RBB.

SWOT analysis. SWOT analysis is done to determine the strength, weakness, opportunity
and threats of an organization. The internal environment provides strength and weakness

29
whereas external environment provides opportunity and threats. The SWOT analysis of RBB,
Itahari branch is as follows:

Strength
 Loyal customers.
 Friendly working environment.
 Consists of informal communication channel and friendly working environment.
 Experienced and co-operative employees.
 Good relationship between customer and employees.
 High level of customer base as well as capital base.
 Extended network throughout the country with 269 branches all over the Nepal.

Weakness
 Poor infrastructure of the bank.
 Frequent internet break-down problem though has own intranet.
 Improper office layout.
 Poor internet as well as ATM services.

Opportunities
 Due to old financial institution, trustworthiness and goodwill of this bank is very high.
 Wide variety of products and service mix offered like: ATM, Mobile banking,
different loans at affordable rate etc.
 One of the leading ‘A’ class commercial bank.
 Increase in awareness level of bank among people.
 Increase in no. of business.
 Development of information technology.

Threats
 Unstable political and economic scenario of the country.
 Frequent fluctuation in interest rates.
 Tough competition from other private banks.
 To fulfill qualified employees in IT sector.

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  Rapid change in customer preferences and choices.

3.2 Critical Analysis of the Theoretical Concepts Relating to Practical Experiences in

the CSD

The main purpose of study is to gain knowledge and experiences in a specific field. The
greatest lesson learnt from internship, is that there is difference between theoretical
knowledge and practical experience. Studying theories, getting information about various
banking functions is one thing and working in an actual bank or financial institution is quite
different. The gap between the study and practical experience that we got are:
 Discipline, punctuality and regularity are very important traits compulsory for bank
professionals.
 Organizational culture does not exist in real banking world too and every member.
 The banker should have knowledge of overall banking but it was found the particular
staff has knowledge of their own department only.
 In banking industry, customer satisfaction and relationship is basically required for
success of the bank but it was found there is no any culture of taking customer advice
and learning from it.
 Every bank should treat their customer equality.
 The entire department should be properly coordinate; otherwise the bank will fall
apart.
 Customer retention and making new customer is profitable for banking industry.

3.3 Knowledge Gained from the Work Assigned

Studies teach students theoretical aspects of practical field that is why students face
difficulties in the real situation in adjusting in practical environment of the organization. An
internship is the first step of learning experience at work environment after the studying of
theoretical knowledge in college. During the two months of internship, the duty was assigned
to various task of CSD. Internship was fruitful in developing interpersonal skill, professional
qualities and time management skill. Some of the knowledge gained are:

31
1. Knowledge about ‘Pumori’ software
In CSD, the internee has to perform most of their task through ‘pumori’ software such as a/c
opening and closing ,cheque printing, KYC updating, balance enquiry, providing statement
etc.

2. Proper documentation
During internship period, internee has to arrange all the official documents systematically
each day after completion of daily work. This helps to provide knowledge regarding proper
filing and documentation.

3. Improve communication skill

Internee has to deal with customer in frequent and regular manner during the course of work.
This enhance the skills on how to deal and communication with the customers.

4. Gain various managerial qualities

During the course of internship, the internee has to deal with different situations,
complexities, work pressure etc. This helps to enhance skills such as confidence, patience,
punctuality, sincerity etc.

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 Chapter IV
Conclusion and Recommendation

This chapter include data and information that are collected during the internship period.
In this chapter summary of different products and services are discussed.

4.1 Contribution of Internship in Knowledge Gain

In the bank customer is considered as the main factor without which the bank cannot operate
its transaction. Therefore the bank always seeks to satisfy the customers giving them the good
services. In RBB, Itahari branch the flow of customer is high is high, so different customers
have their own queries. Almost all of these queries are fulfilled by CSD. For ex: balance
enquiry, open a/c etc. Some of knowledge gained due to internship program are:
 It helps to boost up the confidence level.
 Through internship, real working scenario of banking sector can be experienced.
 Internship helps to enhance the communication as well as managerial skills.
 Proper management of time.

Major Findings
The major findings that I have experienced during my internship are given below:
 Most of the customer of this branch use saving account.
 ATM and mobile banking services is mostly used by the customer of this branch.
 Internet facility of this bank is extremely poor.
 All the staff of this bank is helpful.

Conclusion

33
Internship is the important aspect for the students. It provides the real work experiences to the
students in their concerned field. It helps to improve the skills such as communication,
interpersonal skill, organizational skills, conflict resolution skill etc. Such knowledge helps
student to achieve goals. Similarly, banking sector plays vital role in socio economic
development of the nation. It mobilizes the surplus in the economy for the productive
purposes. So internship in banking sector helps the students to gain knowledge regarding
different banking products, services, working procedures.
4.2 General Comments and Suggestion for the Bank
Rastriya Banijya Bank is the largest commercial bank in Nepal. After observation and
analysis, I came up with the following suggestions for Rastriya Banijya Bank Limited, Itahari
Branch for their better work performance and efficiency.
 Rastriya Banijya Bank should use only one core banking system in all the branches.
 Rastriya Banijya Bank should provide performance based reward to employee for
used employee creativity and productivity improvement.
 Customers have to wait for a longer period in cash counters due to limited counters
with which the customers are dissatisfied. So, RBB should increase the number of
cash counters to render the faster service by minimizing waiting time.
 Crowd should be properly managed inside the banking premises.
 The banking premises are always un-cleaned and unattractive. So, more cleaners
should be hired for proper cleanliness.
 The burden of work on employees is high. So, the number of staff should be
increased to divide the burden of the work.
 The minimum balance to be deposited at the time of opening should be minimized.
 The accessories like ball pen, vouchers should be sufficiently available to customers
at the time of need.
 Photocopy machine should be placed for customer service.
 Proper counseling regarding all products and services and their features should be
given to the customers to promote bank’s service offering like e-banking. SMS
banking and online transactions.
 Advance accounting software and proper internet system should be maintained for
speed of work.
 RBB Itahari branch should properly maintain its functioning of ATM machine.

34
 References

Annual Report of Rastriya Banijya Bank for fiscal year 2078/79.

Financial statement 2078/79-Qtr-1 (English), RBB.
Financial statement 2078/79-Qtr-2 (English), RBB.
Financial statement 2078/79-Qtr-3 (English), RBB.
Pant, P. R. (2009). Social science research and thesis writing. Kathmandu: Buddha,
Academic Enterprises Pvt. Ltd.
Shrestha, D (2022). A study of account opening procedure of Rastriya Banjiya Bank, Itahari
Branch. An Internship Report submitted to Purbanchal University, Kasturi College,
Itahari.
www.nrb.org.com
www.rbb.com.np

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 Annex – A

Number of different Accounts opened in 2 months period

Type of Account No. of Account Opened
1st month 2nd month Total
Saving Account 160 525 685
Current Account 13 6 19
Pension Account 3 8 11
Social Security Account 89 81 170
Total 265 620 885
Source: Internal Record of RBB, Itahari

Annex – B

No. of mobile banking and ATM users in 2 month period

Banking services Total number of users
1st month 2nd month Total
Mobile Banking 103 476 579
ATM 83 454 537
Total 186 930 1116
Source: Official Record of RBB, Itahari

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