The Project Proposal for

The effect of electronic payment system on customer satisfaction in

Everest Bank Ltd.

MS - 100
----------------------------------------------------------------------------------------

Submitted By:-
Name : Shristi Pandey
Enrolment No. : 169150681 
Course Code : MS-100
Program Code : MPB
Partner Institution : ICA, PI - 9602
Guide Name : Bhawani Ghimire (Thapa)

Submitted To: -
The coordinator (project),
School of Management Studies,
Indira Gandhi National Open University (IGNOU),
Maidan Garhi, New Delhi – 110068
INDIA.
February 2018
 BIO-DATA

Name : Mrs. Bhawani Ghimire (Thapa)

Citizenship : Nepali

Date of birth : 11/02/1968

Contact Address : 252/20, Ram Chandra Marg, Battisputali,

Tel No. 4496457

E-mail : bhawani.ghimire@himalayanbank.com

Qualification :

S.S.C- Adarsh Vocational Higher Secondary School

Kathmandu - 2nd division – 1984-85

H.S.C-AFAC English School and Junior College,

Chembur , Bombay – 1st division – 1986-88

B-Com from K.J. Somaiya College of Arts &

Commerce, Ghatkopar, Bombay. – 2nd division – 1988-91

Masters in Commerce with Major in Management

from Bombay University, Fort, Bombay. - 2nd division - 1991-92

Executive MBA from Kathmandu University - CGPA. 3.34 - 2009

Work Experience:

Worked as Account Assistant in Excalibar - Computer Creations, Tardev,

Bombay for the period of 6 months

Worked in OHCS (I) Pvt.Ltd , Chembur, Bombay in Chief

Executive Director’s Office for the period of 2 years - 1991-1993

Worked in Kathmandu Travels and Tours, Kathmandu for

the period of 6 months in Travel Inbound Office. - May 1993-Nov1993

Joined Himalayan Bank Ltd. in 28 Nov’1993 in General Manager’s office as Senior Assistant.
Supported mainly in preparation of various Banking Manuals. Looked after Branch’s Proposal
received from the Branches besides other works in Chief Executive officer’s office.

Promotion Record:-
Promoted to post of Supervisor with effect from 16th July’1996.

Promoted to post of Junior Officer with effect from 16th July’1998.

Promoted to the post of Officer with effect from 14th January’2002

Promoted to the post of Asst. Manager from 14th January’2005 with out of turn.

Promoted to the post of Dy.Manager from 14th Jan’2009

Promoted to the post of Manager from 17th July 2012

Promoted to the Post of Senior Manager from 16th July 2016

Worked as Branch Manager of Himalayan Bank, Bhaktapur Branch

Worked as Branch Manager, New Baneswor Branch,

Worked as Regional Branch handling 5 branches under the region.

Presently deputed as Head, Compliance and Internal Control Department.

Worked in Credit Control Department, on the position of Assistant Manager and looked
after following areas of work:-

 Expedite all EPS proposals sent by branches for approval of competent authority (DGM, GM,
CEO, EC or BOD) in Head Office and inform the branches about the decisions made by
competent authority accordingly. Brief the top management (DGM/GM/SGM) through
Manager, CCD/MPRD on the proposal and performance of the party in the branches after
gathering information from concerned branch manager/in charge.
 Check the performance and exposure of the party / group with other branches or EPS Dept-
Head Office if any sister concern of the group are dealing with us.
 Call for periodical branch reports on loan and advances as and when asked by Competent
Authorities.
 Drafting of management’s circular in consultation with Manager CCD/MPRD, concerned
department and top management. Follow up of the same with branches and departments for
effective compliance.
 Necessary follow up for effective compliance of management remarks on branch proposals.
 Any other work as instructed by Department Head, DGM, GM and CEO.
 Preparation of EC Compliance and compilation of the same for onward submission to EC.
Worked as Head, Loan Recovery Department from 28th August’2008 to Nov 29 ‘2011 and
looked after following works:

Overall NPL (Non Performing Loan Management) of the bank.

Management and sale of Non Banking Assets.

Recovery of bad debts

Strategies adopted to reduce the NPL

Control and monitor branches NPL position.

Other Knowledge : Computer Knowledge - Window, Wordstar, Excel

: Language :- Can speak, read and write fluent English, Hindi, Nepali,
Can understand Marathi, Punjabi and Newari.

Extra Qualification : Done course in Advance Diploma on Computer Application

Training Acquired : Inhouse Training :-

Comprehensive Banking conducted by HBL

Training in International Banking conducted by the concerned dept.

In-House EPS Management Training Programme Phase I, “EPS Plus”, 11th –22nd

Sept’2004 in Kathmandu.

Outside Training :

Training in Beginners Level training in :

Accountancy conducted by MAC Consultant Pvt.Ltd., Kathmandu – 3 months

Training in Quality Report Writing conducted by Management Association of Nepal – One month

Training in EPS Management conducted by Nepal Rastra Bank (Central Bank) Training Centre –
15 days.
Training on EPS Management organised by Banker’s Training College, Reserve Bank of India,
Mumbai, India, September 1 to 13’2003.

3 days Interactive Workshop on “Integrated Risk Management” at Hotel Shanker, 3rd – 5th’2005.

Program on EPS Management conducted by Indian Institute of Bank Management, Guwahati,

Assam. India 11th – 15th July’2005.

2 days Training on Organisation Behaviour conducted by Mr. Mankidy from 26th to 27th Feb’2006

Art of Living conducted at Agrawal Bhawan, Kathmandu from 16th to 20th April’2007.

Programme in Management of NPAs and Recovery Srategies from 8 th Jan’ to 12th Jan’2007 at
NIBM, Pune.

Branh Management Training from 26th Feb to 1st March’2010 conducted by Professor Sinde at
Shankar Hotel.

Extra Activities and involvement:

Trainer in CNET Training Centre and Bankers Training Centre at Suryabinayak Bhaktapur

Takes classes on EPS management and loan recovery.

Visiting teacher at BEF Campus affiliated with Madurai Kamraj University for subject
Banking, Entrepreneurship.

Counsellor at IGNOU for MBA Finance.

Member of Tribhuvan Army Officers Golf Club, Guheswori

Member of Art of Living, Nepal.

Member of Rotary Club of Bhaktapur

 Table of Contents:-

I) Project Title Page no:1

II) Review of Literature Page no:1
III) Introduction of Everest Bank ltd (EBL) Page no:4
IV) Electronic Payment System Facility and Services Page no:6
V) Significance of the study Page no:7
VI) Objectives of the study Page no:8
VII) Statement of the problem Page no:8
VIII) Research methodology to be used Page no:9
IX) Expected contribution from the study Page no:9
X) Limitations of the study page no:9
XI) Bibliography Page no:10
XII) Abbreviations used Page no:10
I) Project Title: -
The project title of the project research is –The effect of electronic payment system on
customer satisfaction in Everest Bank Ltd.

II) Review of Literature

Commercial banks in Nepal

The existence of banks and other non-bank financial institutions in a formal and organized way
is collectively known as the financial system of a country. Financial system can be grouped into
banking and non-banking financial institutions. The banking system is made up of commercial
banks and investment banks. Commercial banks are primarily in the business of accepting
deposits and extending credits. Only commercial banks are authorized to conduct full-fledged
banking services. The other non-bank financial institutions can operate conditional or limited
banking services.

The economic development of any country depends on optimum utilization of natural resources,
technological development, formation of capital and capital market development are equally
important. Among these, capital formation is the most important element. The commercial banks
play a crucial role for generating capital in Nepal. Under the regulation of the Central bank, they
provide various credit facilities to their customers in order to generate sufficient capital for
business. So, there is a casual relationship between trade development and credit facilities.
Commercial Banks (CBs) often serve as vehicles for private individuals or companies to invest
in relatively low-risk projects usually in mature western economies, The financial support banks
bring to relatively high-risk projects also serve as impetus for the involvement of private sector
capital, bringing in such diverse actors as Commercial Banks, investment funds and private
individuals or companies.

History of Commercial Bank

The word 'bank' is derived from the Italian word 'banco' meaning the portable benches or
counters over which the moneychanger comes from. A bank is an institution, which deals with
money and credit. It accepts deposits from the public, makes the funds available to those who
need them, and helps in the remittance of money from one place to another.

The commercial banks are those banks which are established to accept deposits and grant loan to
the industries, individuals and traders with a view to earn profit. Apart from financing, they also
render services like collection of bills and cheques, safe keeping of valuables, financial advising
etc. to their customers.
According to Commercial Bank Act 2031, “Commercial Banks are those which are established
under this act to perform commercial function those which are established for specific purpose
like development banks, co-operatives etc.”

In Nepal the origin of commercial banking activities can be traced to ancient Nepal. However,
‘Tejrath’ has performed the institutional form of commercial banking activities for the first time
during the Rannodip Malla, Rana Prime Minister of Nepal. Afterwards with the necessity of
commercial banks, Nepal Bank Limited, the first commercial bank was established in 1937A.D.
Then Nepal Rastriya Bank, which is now the central bank of Nepal came into being. In 2022 B.S
another commercial bank owned by the government named Rastriya Banijya Bank was
established. The list of Commercial banks is shown as under:

List of Commercial Banks (Class A) in Nepal

1. Nepal Bank Ltd.
2. Rastriya Banijya Bank Ltd.
3. Agriculture Development Bank Ltd.
4. Nabil Bank Ltd. The role of commercial banks
5. Nepal Investment Bank Ltd.
6. Standard Chartered Bank Nepal Ltd.
The commercial banks play an important role in
7. Himalayan Bank Ltd.
accelerating the development of an economy. The
8. Nepal SBI Bank Ltd.
commercial bank is the great institution that conducts
9. Nepal Bangaladesh Bank Ltd.
10. Everest Bank Ltd.
the payment mechanism of country. The individuals
11. Kumari Bank Ltd and institutions make payments to each other through
12. Laxmi Bank Ltd. the mechanism of commercial bank. The commercial
13. Citizens Bank International Ltd. bank plays a leading role in the smooth operation of an
14. Prime Commercial Bank Ltd. economy .it makes available all financial services to
15. Sunrise Bank Ltd. individuals and institutions.
16. Janata Bank Nepal Ltd.
17. Mega Bank Nepal Ltd. Commercial banks engage in the following activities:
18. Century Commercial Bank Ltd.
19. Sanima Bank Ltd.  processing of payments by way of telegraphic
20. Machhapuchhre Bank Ltd. transfer, EFTPOS, internet banking, or other
means
21. NIC Asia Bank Ltd.
 Issuing bank drafts and bank cheques
22. Global IME Bank Ltd.
 Accepting money on term deposit
23. NMB Bank Ltd.  To provide advance loans on sufficient
24. Prabhu Bank Ltd. securities of gold,silver,ornaments,government
25. Siddhartha Bank Ltd. securities and promissory notes ,movable
26. Bank of Kathmandu Ltd. properties or documents of little connected
27. Civil Bank Ltd. therewith,share and debentures of the
28. Nepal Credit and Commerce Bank
Ltd.
 companies registered in the Nepalese companies act , bill of exchange to the reliable
person or clients. Besides,they are bound to provide advance loans in certain minimum
percentage of their total deposit in the priority sector of which are fixed on the direction
of Nepal Rastra bank.
 Providing documentary and standby letter of EPS, guarantees, performance bonds,
securities underwriting commitments and other forms of off balance sheet exposures
 Safekeeping of documents and other items in safe deposit boxes
 Distribution or brokerage, with or without advice, of insurance, unit trusts and similar
financial products as a “financial supermarket”
 Cash management and treasury
 Merchant banking and private equity financing

Traditionally, large commercial banks also underwrite bonds, and make markets in currency,
interest rates, and EPS-related securities, but today large commercial banks usually have an
investment bank arm that is involved in various EPS activities. Due to merger and acquisition in
Nepal, the total number of commercial banks in Nepal has become to 28. Among these banks
some are established under joint venture with foreign banks while some are fully domestic bank

Commercial banks are those which collect the immobilized capital from public, organizations etc
as deposits and invest these capitals in different sectors like business, industries, and services etc,
which fulfill the demands of capital in these sectors. The development of an economy in fact
depends upon the development of commercial banks to some extent. The role commercial bank
is significant not only in mobilizing saving but also in making investment for the development of
different sectors of the economy. Their role is also important for the poverty reduction, raising
employment opportunities between the richer and poorer section of the society. Therefore it is
called an engine economic growth. Development of the commercial banks has become the basis
for measuring the level of economic growth of a nation.

III) Introduction of Everest Bank Limited

Catering to more than 8.5 lacs customers, Everest Bank Limited (EBL) is a name you can depend
on for professionalized & efficient banking services. Founded in 1994, the Bank has been one of
the leading banks of the country and has been catering its services to various segments of the
society. With clients from all walks of life, the Bank has helped develop the nation corporately,
agriculturally & industrially.
Joint Venture Partner
Punjab National Bank (PNB), our joint venture partner (holding 20% equity) is the largest
nationalized bank in India having presence virtually in all important centers. Owing to its
performance during the year 2012-13, the Bank earned many laurels & accolades in recognition
 to its service & overall performance. Recently, PNB was awarded with "IDRBT Banking
Technology Excellence Award" under Customer Management & Intelligence Initiatives. The
Bank also bagged "Golden Peacock Business Excellence Award 2013" by Institute of Directors.
Similarly, the Bank was recognized as 'Best Public Sector Bank' by CNBC TV 18. The bank has
now more than 6,635 branches and 8622 (as on 30th sept 2015) ATMs spread all across the India.
As a joint-venture partner, PNB has been providing top management support to EBL under
Technical Service Agreement.
Networks
Everest Bank Limited (EBL) provides customer-friendly services through its wide Network
connected through ABBS system, which enables customers for operational transactions from any
branches. The bank has 64 Branches, 94 ATM Counters, 2 extension counter & 26 Revenue
Collection Counters (as on 19th November 2017) across the country making it a very efficient
and accessible bank for its customers, anytime, anywhere.

Performance

Key Financial Highlights

Fiscal Fiscal Fiscal Fiscal
Fiscal Fiscal
Particular Year Year Year Year
Year 2073 Year 2074
2069 2070 2071  2072 
Total Business. (Rs
8662.29 10191.82 11055.84 13,845.73 16,264.70 17,337.91
in Ten Million)

Operating Profit.
1,790.39 2401.55 2494.03 2,416.60 2,834.24 3,182.02
(Rs in Million)

Dividend/Bonus            
Payments.(In %)
Cash Dividend 1.58* 50 50 5 -  *

Bonus 30 10 12 30 70  *

* Regarding Dividend/Bonus Payments for FY 073/074, AGM for said period has not been
conducted yet.
Awards
 The bank has been conferred with the "Best Managed Commercial Bank" by ASIAN PAINT
NEWBIZ Award 2013.
 The bank adjudged as "Number 1 Bank" under CAMELS (along with Customer Base & Branch
Network) rating conducted by KAROBAR national daily (a leading business media house of
Nepal).
 The bank has been conferred with “Bank of the Year 2006, Nepal” by the Banker, a publication
of financial times, London.
 The bank was bestowed with the “NICCI Excellence award” by Nepal India chamber of
commerce for its spectacular performance under finance sector.
  
Pioneering achievements
 EBL was one of the first banks to introduce Any Branch Banking System (ABBS) in Nepal.
 EBL introduced Mobile Vehicle Banking system to serve the segment deprived of proper
banking facilities through its Birtamod Branch, which was the first of its kind.
 EBL introduced branchless banking system first time in Nepal to cover unbanked sector of
Nepalese society through biometric machine.
 EBL is first bank that has launched e-ticketing system in Nepal where customers can buy yeti
airlines ticket through internet.
 EBL introduced online payment of Mobile/PSTN/ADSL/NCELL bill or from the counter as
well.
 EBL is the first bank to introduce agro-specialized branch "KRISHI UDHYAM BIKASH
SAKHA" at Rajbiraj.
 EBL introduced Cash Deposit Kiosk for the first time in Nepal through which the Customers can
deposit Cash conveniently.

Corporate Vision and Mission

Vision of EBL

“To be a Leading Commercial Bank with Pan Nepal presence and become a household name,
providing wide range of financial products and services under one roof” 

Mission of EBL

“Growth through Banking for ALL”

Electroic Payment System:

Today’s business environment is extremely dynamic in nature. It has experienced rapid changes
as a result of technological improvements, increased awareness and demands for banks services.
The Banking industry of the 21st century operates in a complex and competitive environment
characterized by these changing conditions and highly unpredictable economic climate, thus,
information and communication technology (ICT) is at the centre of this global change.Banks
over the time have been using electronic and telecommunication networks for delivering a wide
range of value added products and services. Therefore, information systems could not be ignored
because they play a critical role in current Banking system in Nepal.

Electronic Payment is a financial exchange that takes place online between buyers and sellers.
Electronic banking is known as e-banking, virtual banking or an online Banking, it is a service that allows
customers to access their bank information, conduct financial transactions, make deposits, withdrawals
and pay bills through the internet without having physical visit to their banks. It provides the convenience
of accessing banking facilities from the comfort of their home/offices.

IV) Electronic Payment System Facility and Services

1) M-Banking (EBL Touch-24)

Mobile Banking service is bundled with application and text based features. This facility
gives real-time access to the accounts, anytime, anywhere by just clicking on menu
option displayed on the mobile application or by sending text message to the service
center

Key Facts

Eligible Mobile sets : Works on all types of mobile phones•

Installation : Easy to follow the setup process during installation,
Easy to pay : Money transfer is based on account number.
Wide functionality : Transfer, payments, Inquiries etc.
Connectivity Network : WiFI, 3G
Service Mode : SMS and Web based.

2) ATM SERVICES: ATM Network,Debit Card,EPS Card

3) Mobile ATM

The Bank has online based product “Mobile ATM” (Branch Less Banking). It is an agent
based banking to reach the people in unbanked areas of the country. EBL has this product
which is based on mobile device. Agents provide a range of banking services which
include: cash deposit & withdrawal, balance inquiry, collection of document in relation to
account opening, KYC and remittance payment. By using mobile phone, customer
through SMS can have access to banking channel.

4) E-Banking

EBl is pleased to have been given the chance to be of service and would like to offer a
wide range of services in the form of E-Banking.
 Account summary/ Statements
Balance Inquiry
Fund Transfers
Utility Bill Payment
Offline Requests (Cheque books, remittance etc)
Various Alerts (Email/SMS)

5) SMS Banking

Mobile Banking service is bundled with application and text based features. Customer of
EBL can enjoy the banking facility in their mobile phones. This gadget based service
makes 24 hour availability of the bank as per the need of the customers. Current/Savings
& Overdraft account holders are eligible for this service.

V) Significance of the Study: -

In recent years people are attracted towards various banking services to maintain their daily
activities. Payment systems are a vital part of the financial infrastructure of a country which
smoothly gives rises to the need of various EPS facilities. Hence it has no doubt that EPS facility
has become one of the prominent source of finance for many business organization. That’s why
it has become the best services and latest attractions for the banking customers.

The significance of the study is as follows:-

1. It is helpful for the further research in this felid i.e. EPS Facility
2. An electronic payment system introduces potential cost savings through an improved
business model and effective supply chain management, since much of the transaction
process is automated.
3. Electronic payment systems allow financial institutions, businesses and the government
to offer a variety of payment options to their customers.
4. E-payments systems result in reduced costs for both businesses and individuals. 
5. The traditional payment systems mainly involved clients sending their confidential
information via post or physically visiting the transaction site.

VI) Objectives of the Study:-

The main objective of the study will be to know the various EPS facilities provided by Everest
bank and to check the level of satisfaction over these facilities in order to provide further
possibility of improvement in this felid. Some of the specific objectives are as follows: -
 1. To study about the various EPS Facility and services of Everest Bank Limited,
Nepal,
2. To find out effect of electronic payment system on customer satisfaction in Everest
Bank Ltd.
3. To suggest EBL about appropriate improvements required in its EPS Facilities
and services.

VII) Statement of the problem: -

In response to the economic liberalization policies of the government of Nepal, establishment of

private joint venture company are continuing. The availability and accessibility for the capital is
very important for any economy. For the economic development of the country, strong money
market and easy EPS facilities are not sufficient so banks have to provide vast EPS facilities and
services to their customers in order to meet their needs.
Everest bank is giving all kind of product and services including various types of EPS Facilities.
The various EPS schemes has developed to cater the need of the customers.

The study is to find out if the EPS facility and services are satisfactory to the customers and to
see if there is space for improvement in the products and services owing to consumer need and
satisfaction of the customers in this intense competition in the financial sectors, in these modern
times.

VIII) Research Methodology to be used: -

Research methodology indicates the method and process used to collect the information and data
related with the study. It involves research design, planning and procedure to be followed by the
researcher for conducting research, collection of data, their sources and use of appropriate
quantitative tools to analyze the study.

Questionnaire will be developed for doing survey on EPS Facility and customer Satisfaction will
also be done.

This study on Everest Bank is fundamentally based on secondary data. The data and information
are gathered with the help of various second hand sources such as reports of annual newsletter,
financial statements, official records and various other published articles in newspaper,
magazines. The website of Everest Bank Limited has also becomes useful source of related data
used in report. The report is also based on some primary data collected through interviews and
questionnaire with branch managers, staff of Everest Bank Ltd and with some related existing
customers.
 Various Financial and statistical tools will be used for the presentation of the collected data. All
relevant facts and figures are arranged and presented in systematic tables and with the help of
graphs.

IX) Expected contribution from the study: -

1. This study will show what are the various Electronic payment system facilities and
Services provided by the bank
2. Electronic Payment system Facility and services provided by EBL are analyzed through
customer’s point of View.
3. The bank will be able to attract more customers by providing them better service.
4. The customers would be benefited by getting better knowledge about various EPS
facility of bank
5. The study will provide some feedback to the bank which provides them some future
guidelines for the improvement in its EPS sector.
6. Customers will be able to enjoy easy and better online facility.

X) Limitations of the study: -

As we know that every rose has some thrones, this study also has some limitations which are as
follow;

1. The study is only for the partial fulfillment of the requirement of the degree of MBA.
2. The study is totally dependent on Second hand data collected through oral interview and
questionnaire.
3. The study is able to cover only limited area of Kathmandu valley due to time limitation.
4. The study is prepared within the limited time period.
5. The study becomes more difficult because of unavailability of the latest data.

Bibliography: -

1. http://en.wikipedia.org/wiki/commercial_bank
2. http://www.everestbankltd.com/
3. https://www.nrb.org.np/bfr/pdffiles/List_of_BFIs_Jan_2017_English.pdf
4. http://www.everestbankltd.com/annual
5. Everest Bank Limited Annual Report Magazine
6. https://www.nrb.org.np/
Abbreviations used:

EBL – Everest Bank Limit

EPS – Electronic Payment system
ATM – Automatic Teller Machine