AN INTERNSHIP REPORT ON NEPAL RASTRA BANK,

BALUWATAR BRANCH

Submitted by:

Samir Ghimire

Exam Roll Number: 19887/17

T. U. Registration No: 7-2-360-74-2017

College of Applied Business

Chabahil, Kathmandu

Submitted to:

Office of the Dean

Faculty of Management

Tribhuvan University

In the partial fulfillment of the requirement for the degree of

Bachelors in Business Administration (BBA)

Gangahiti, Kathmandu

May, 2022
 CERTIFICATE FROM THE SUPERVISOR

This is to certify that the internship report entitled “Internship Report on Nepal Rastra Bank” is
an academic work done by “Samir Ghimire” submitted in the partial fulfillment of the
requirements for the degree of Bachelor of Business Administration at Faulty of Management,
Tribhuvan University under my guidance and supervision. To the best of my knowledge, the
information presented by him/her in the internship project report has not been submitted earlier.

………………….
Bashu Dev Dhungel
Supervisor

i
RECOMMENDATION FROM THE ORGANIZATION

ii
 STUDENT DECLARATION

I hereby declare that the internship report entitled ‘An Internship Report on Nepal Rastra
Bank’ submitted to College of Applied Business, Faculty of Management, Tribhuvan University
is my original work done in the form of partial fulfillment of the requirement of Bachelor in
Business Administration (BBA) under the supervision and guidance of Mr. Basu Dev Dhungel.

……………………...
Samir Ghimire
May, 2022

iii
 ACKNOWLEDGEMENTS

This report is the result of continuous effort and extended support of many people. The
preparation of this report needed a lot of effort and suggestions of many people in order to get to
its complete form. Firstly, I would like to thank College of Applied Business (Affiliated to
Tribhuvan University) for designing a platform where we can gain not only theoretical
knowledge but also practical knowledge. I would like to thank Mr. Bashu Dev Dhungel, my
internship supervisor, for his support and guidelines. Without him, it wouldn’t have been
possible to conduct the internship and make the report.

First and foremost, my major indebtedness goes to Nepal Rastra Bank, Banking Department,
Baluwatar for giving us an opportunity to enhance our learning and professional development. A
sincere gratitude to Mr. Ram Bahadur Manandhar, (Executive Director, Banking Department,
Baluwatar), Mr. Ananda Paudyal (Director), Mr. Durgesh Gopal Shrestha (Director), Mr. Girija
Prasad Koirala (Director), for providing me such an opportunity to complete my internship at
the bank. I am very thankful to all the staffs of banking department for their careful and precious
guidance which were extremely valuable for my study both theoretically and practically.
I pay my deepest thanks to my family and my dear friends for their valuable support and
assistance. Though I am not a professional or experienced in this field but I had tried my level
best to make this project according to the internship guidelines.

I perceive this opportunity as a big milestone in my career development. I will strive to use
gained skills and knowledge in the best possible way, and I will continue to work on their
improvement, in order to attain desired career objectives. Hope to continue cooperation with all
of you in the future.

Sincerely,

Samir Ghimire

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 TABLE OF CONTENTS

CERTIFICATE FROM THE SUPERVISOR ................................................................................... i

RECOMMENDATION FROM THE ORGANIZATION ...............................................................ii
STUDENT DECLARATION ............................................................................................................ iii
ACKNOWLEDGEMENTS ............................................................................................................... iv
CHAPTER I ......................................................................................................................................... 1
INTRODUCTION ................................................................................................................................1
1. 1 Background ............................................................................................................................. 1
1. 2 Objectives of the Study ...........................................................................................................2
1. 3 Methodology ........................................................................................................................... 2
1. 3. 1 Organization Selection ...............................................................................................2
1. 3. 2 Placement ...................................................................................................................3
1. 3. 3 Duration of Internship .................................................................................................3
1. 3. 4 Activities Performed .................................................................................................. 3
1. 3. 5 Nature and Source of Data .........................................................................................3
1. 4. Limitations of the study ....................................................................................................... 4
CHAPTER II ........................................................................................................................................5
INTRODUCTION OF THE BANKING INDUSTRY ......................................................................5
2. 1 Meaning and Definition of Bank ............................................................................................ 5
2.2 Functions of Bank .................................................................................................................... 8
2. 3 Origin of Banking ................................................................................................................... 9
2. 4 Types of Banks ..................................................................................................................... 10
2. 5 Evolution of Bank in Nepal .................................................................................................. 11
2.6 Roles of Bank in an Economy ............................................................................................... 13
CHAPTER III .................................................................................................................................... 15
INTRODUCTION TO THE NEPAL RASTRA BANK .................................................................15
3. 1 Introduction to Nepal Rastra Bank ....................................................................................... 15
3. 2 Vision ....................................................................................................................................15
3. 3 Mission ..................................................................................................................................15
3. 4 Objectives of Nepal Rastra Bank ..........................................................................................16
3. 5 Functions of Nepal Rastra Bank ........................................................................................... 16
3. 6 Organization Structure of Nepal Rastra Bank ...................................................................... 17
3.6.1 Functions of the section .............................................................................................. 20
3.6.1.3.1 Clearing Outward: .................................................................................................23
3.6.1.3.2 Clearing Inward: ................................................................................................... 24
3.6.1.3.3 Final settlement: ....................................................................................................25
CHAPTER IV .....................................................................................................................................26
ANALYSIS OF ACTIVITIES DONE AND PROBLEM SOLVED ............................................. 26
4.1 Activities Performed in Nepal Rastra Bank ...........................................................................26
4.1.1. Activities Performed in Remittance Section ..............................................................26
4.1.2. Activities Performed in Indian Currency Section ......................................................26
4.1.3 Activities Performed in ECC Section: ........................................................................ 27
4.1.4 Activities Performed in Ledger Section ......................................................................27
4.1.5 Activities Performed in Internal Administration Section ........................................... 27
4.2 Issued Identified .....................................................................................................................27
 4.3 Problems Solved .................................................................................................................... 28
CHAPTER V ...................................................................................................................................... 30
CONCLUSION AND LESSON LEARNT ...................................................................................... 30
5. 1 Conclusion ............................................................................................................................ 30
5. 2 Lessons Learnt ...................................................................................................................... 31
REFERENCES.............................................................................................................................
ANNEX..........................................................................................................................................
 LIST OF TABLE

Table 2.1 Classification of Banks and paid up Capital Requirement………………………………13

Table 5.1 Lessons Learnt…………………………………………………………………………...31

 LIST OF FIGURE

Figure 3.1 Organizational Structure of NRB………………………………………………………..17

 CHAPTER I
INTRODUCTION
1. 1 Background
The Management Internship was carried out for the partial fulfillment of the Bachelor of
Business Administration (BBA) program under Tribhuvan University. Internship program is a
mandatory program directed for Bachelor of Business Administration (BBA) students under the
Faculty of Management of Tribhuvan University. BBA is the four-year course which consists of
eight semesters which in the eighth semester students are required to spend 12 weeks in a
business organization. This report provides information about the work and the details that was
learnt by the internee at Nepal Rastra Bank.

Internship is the process of working as an assistant or a trainee to gain practical experience in an

organization. In order to expose the students to the actual working environment, internship is
included as a mandatory requirement for the successful completion of Bachelor of Business
Administration. Internship is an opportunity to observe, learn and understand the corporate
culture. It is important because theoretical knowledge is valueless without practical learning. An
intern is someone who works in a temporary position with an emphasis on on-the-job training.
Internships are arrangements in which college students lend their talents to companies in return
for an opportunity to develop business skills and gain exposure to real work settings. It is always
best to select an organization that suits an intern area of specialization. This helps intern in easily
understanding the logic behind the operations carried out within the organization. It also provides
the intern an opportunity to understand how the knowledge acquired through the formal
classroom discussion sessions is applied in the real working situations. Thus, to meet this
objective internee selected Nepal Rastra Bank, which is the Central Bank of Nepal. This
approach focuses on the generalization concept where the internees obtain a general overview
about each of the department they get a chance to be in. The main objective of the study is to
understand and analyze the different types of activities that are carried out at Nepal Rastra Bank.
This study helps the students to be acquainted with the working environment before-hand they
actually start working in any organization. In addition to this, the program also helps the student
to identify their field of interest, and also the career they would wish to practice.

1
Finally, this report is prepared on the basis of the experiences and observation at Nepal Rastra
Bank. However, this report lacks data analysis because the primary data is unavailable.

1. 2 Objectives of the Study

The major objective of internship is to develop skills of the students through the application of
theory to practical work situations. It helps the intern to become competent, confident and skilled
professional in the near future.

The objectives of the study are as follows:

• To gain theoretical as well as practical knowledge on activities and environment of the

organization.
• To widen interpersonal and communication skills through the continuous interaction with
the various employees and related people of the organization.
1. 3 Methodology

Research methodology is concerned with various methods & technologies used in the process of
preparing project report. This study is mostly descriptive in nature where the fact and findings
are prescribed in the systematic manners. Therefore, a systematic approach and research
methodology was followed to collect the needed information which includes primary and
secondary sources such as observation of day to day work, published sources, organization
homepage etc. The following represents the methodology of the study.

1. 3. 1 Organization Selection

Considering the importance of internship and the positive aspects of it, the internees need to
select that organization that would give him/her the better opportunity to understand their area of
interest and their commitment. At the same time, the interest of the internee also should be
considered. Organization selection is a crucial factor in an internship program. The internee
needed to select that organization which could help the student learn various aspects of the
working environment, build up the confidence level, develop the interpersonal skills and
managerial skills, and at the same time should be related to the student’s field of study i.e.
Financial Institutions. Nepal Rastra Bank, Baluwatar was selected for the internship as it has the
provision for good environment of learning, and have perfect platform for skill growth and
development.

2
1. 3. 2 Placement

The placement of the intern was done by the Banking Department. Internee was primarily made
familiar with the organization and the working environment and then internee was allowed to
work in the various division of human resource department. In this department, the internee
assisted their mentors by assisting them in their working process and similarly internee came to
know about the working procedure. Thus, the internee could have the overall knowledge of the
banking department.
1. 3. 3 Duration of Internship

With regard to the requirement based on BBA under Tribhuvan University, the internee joined
NRB dated 14th February to 8th May 2022(12 weeks).

1. 3. 4 Activities Performed

The internee was assigned to perform the following activities on the day to day basis. The major
activities performed are enlisted below:

a)Clearing Cheques inward and outward.

b) Indian Currency(IC) transactions posting to general public.

c)Pension entries of retired NRB staffs.

d) Managing files.

1. 3. 5 Nature and Source of Data

The internship report work is basically a type of employment field work. This report has been
basically prepared on the basis of 12 weeks of internship work in Banking Department of Nepal
Rastra Bank. The following sources have been used to collect the necessary data. In this study,
primary and secondary data have been used.

Primary sources

Primary data are the first hand data. Here the necessary information is collected from:

• Day to day observations of day to day work activities,

• Instruction of supervisors,

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 • Discussion, interaction and enquiry with the NRB staffs

Secondary sources

Secondary data are data collected from published sources. The major sources are publications of
the newsletters, annual reports, magazines, books, prospectus, internets, organization homepage,
brochures, organizational documents, and other publications.

1. 4. Limitations of the study

This study has been conducted with certain limitations. Some of them are pinpointed as follows:

• Twelve weeks of time for internship is not sufficient for overall understanding of the
organization.
• The study is based upon personal understanding of the internee regarding the Nepal Rastra
Bank operation during the internship period.
• Due to privacy policy maintained in the organization, there is unavailability of some
information.

• Being a student, lack of technical knowledge in the respective field was another factor
which limits the report.

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 CHAPTER II
INTRODUCTION OF THE BANKING INDUSTRY
2. 1 Meaning and Definition of Bank

A bank is a depository financial institution which purchases money and sells money for money.
A bank can be defined in terms of the economic functions it serves, the services it provides to its
customers or the legal basis for its existence (Rose & Hudgins, 2017). In other words, Bank is
financial institution that deals with monetary transactions. In this way, a bank is a sensitive sector
of the industry because it plays with the public money. The primary operating activity of any
bank is to collect fund in the form of deposit from the surplus sector of the economy and transfer
this collected fund to the deficit unit of the economy in the form of loans. The benefit that the
surplus unit gets by depositing their access fund in the bank and the charge that the deficit unit
pays for using the fund of the bank are both expressed in percentage and that rate is known as the
interest rate.

A bank is a financial institution which provides financial services that may be in the form of
accepting deposits, accepting the loan, providing technical advice, dealing over foreign
currencies, remitting funds, etc. Bank is, therefore; known as a dealer of money that bridges the
gap between the savers of fund and users of the fund. Banks often offer many other money-
related services such as lending money, sending money to other people, exchanging large bills
for smaller bills, and providing credit cards. Physical buildings where these services are offered
are called banks, and the companies that own and operate these institutions are also called banks.
This kind of business is called banking, and a person who works in this business is called a
banker. All countries subject banking to government regulation and supervision, normally
implemented by central banking authorities stated that bank collects money from those who have
it to spare, or who are saving it out of their incomes and lends the money to those who require it
(Rose & Hudgins, 2010).

It performs a wide variety of functions, which provide utility to the individual, corporation and
public. In the broadest sense, banking consists of safeguarding and transfer of funds, lending or
facilitating loans, guaranteeing credit worthiness, and exchange of money. These services are
provided by such institutions engaged in investment banking. A narrower and more common

5
definition of is the acceptance, transfer, and most important creations of deposits. This includes
such depository institutions as commercial banks, savings, and loan associations, building societies,
and mutual savings banks. A bank is an institution involved in monetary transaction which performs
the function of accepting various types of deposits, safeguarding deposits, lending loans, providing
means of Payment, electronic banking, and other services such as issuing travelers cheque and
money order (Thapa & Neupane., 2010).
It collects deposits from the general public, corporate bodies, and private organizations by providing
them the certain percent of interest, mobilizes the fund to productive sectors and distributes the
accumulated fund to others, who need money by charging the certain percent of interest. We can say
that bank actually acts as a mediator between savers and borrowers as they collect money from
savers and provide to the investors or users. Banking sector plays an important role in the economic
development of the country. The word ‘ Bank ’ has been derived from the Italian word ‘ Banco ’
which means a place for keeping, lending, and exchanging money. The bank is a financial
institution, which deals with money. It accepts deposits from individuals and organizations and
grants loans to them. It allows interest on the deposits made and charges interest on the loans
granted. Since, it accepts deposits and grants loans, it is regarded as the trader of money. Further, it
creates credit and supports for the formation of capital. Bank collect scattered money from public in
the form of deposits by providing them certain percent of interest and distribute the accumulated
fund to others, who need money by charging certain percent of interest, which is usually higher than
the interest that it gives to the depositors (Gautam et al, 2011).
According to Nepal Rastra Bank(NRB) Act 2002 “ Bank is a financial institution, which provides
financial services that may be in the form of accepting deposits, advancing loan, providing
necessary technical advice, dealing over foreign currencies, remitting funds, etc. ” According to
Kent “A bank is an organization whose principal operations are concerned with the accumulation of
the temporarily idle money of the general public for the purpose of advancing to others for
expenditure. ” According to Commercial Bank Act 2031 B.S. “ A commercial bank refers to such
type of bank which operates currency exchange transactions deposits, advances loans, performs
dealing relating to commerce except the banks which been specified for the cooperative, agricultural,
of the similar other specific objective.” As per Bank and Financial Institution Act (BAFIA) 2063,
“bank” means a corporate body incorporated to carry on financial transactions as referred by law”
(NRB,2015).

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The concept of banking is not a modern concept. This concept had started to evolve in the brilliant
human mind immediately after the humans were able to realize and develop money. Though money
had made the human life much easier than before, but ancient humans started to realize the
complexities that evolution of money had created in their life. So, in order to overcome these
complexities and the difficulties that were attached with the benefit of money the concept of
banking emerged in the human mind. Earlier the money lenders and the landlords perform the
banking activities as the informal banks but later the activities of these people are formalized and
the concept of bank as an institution had emerged. The word “ Bank ” is derived from the Italian
word “Banco”, Latin word “Bancus” and French word “Banque” because all meant the bench in
which the bankers would keep money and its records. The Jews of Lambardy were thought to be the
early bankers’ who transacted third business at the benches in the marketplace and when they were
unable to meet their liabilities, the depositors used to break their benches and this tradition had
given birth to a banking term “Bankrupt”. The first ancient Bank of the world is supposed to be the
Bank of Venice which was established in 1157 A.D. Following the footsteps of this bank, other two
banks were established in 1401 and 1407 named Bank of Barcelona and Bank of Geneva,
respectively. The crucial breakthrough in the modern banking history was made in 1694 A.D when
the first modern bank “The Bank of England” was established. After the establishment of this first
English Bank, Banking sector had experienced various ups and downs but still they persisted and
because of that persistence they are now able to exist in this 21st century world as one of the
essential element of human life. The recent recession of 2008 is the outcome of the inefficient
banking practice and the world had to suffer much only because of the inefficiency and negligence
of a single banking sector (Kalika, 2019).
Bank is a financial intermediary which creates the relationship with both the surplus units and the
deficit units. To create the relationship with these units, bank offers various financial products and
the person who purchase that product will knowingly or unknowingly becomes the relative of the
bank. The major financial products that any bank offers to the public are various deposits schemes
and the loan schemes.
Bank exists in the economy to perform the function of the intermediary. Banks intermediates not
only the surplus and deficit units but also perform various management activity to create a
balance in the economy. It should perform the size inter-mediation because in general surplus

7
units are large in number but they less amount of surplus funds and the opposite scenario is of
the deficit side

Basically, banks are those financial institutions that offer the widest range of financial services-
providing credit and encouraging savings; and also perform the widest range of financial
functions for all type of business firm in the economy. Commercial bank is the term used for a
normal bank to distinguish it from an investment bank. It raises fund by collecting deposits from
business and consumers. It also buys corporate bonds and government bonds. Its primary
liabilities are deposits and primary assets are loans and bonds. The banks which perform all
kinds of banking and generally finances trade and commerce, are called commercial banks.
Commercial bank is merely a business firm engaged in financial inter-mediation as well as
additional functions under strict supervision and control of central bank.

In the present context, bank had become the basic need of the human which performs not only
the basic financial activities but also performs the non-financial activities to ease the human life.

2.2 Functions of Bank

A bank is a financial institution that performs several functions which strengthens the economic
system of a nation. The basic functions performed by a bank are elucidated below:

Accepts deposits: Bank accepts deposits in the form of saving, fixed, current and recurring
deposits.

Grants loan and advances: It provides loans and advances to the individuals and institutions.
Different types of loan provided by the bank are overdraft, home loan, automobile loan,
revolving loan, term loan etc.

Agency functions: A bank acts as an agent of the customer and performs the agency functions
like:

• Periodic payment and collection of the customers

• Funds transfer

• Acts as correspondent, trustee, tax consultant

• Portfolio Management

8
Utility functions: It performs general utility functions like:

• Issuing drafts, letter of credit

• Provides locker facilities

• Underwrites the shares

• Deals in foreign exchange

• Project reports

• Involves in social welfare programs

2. 3 Origin of Banking

The concept of bank had started to evolve in the brilliant human mind immediately after the
humans were able to realize and develop money. Though money had made the human life much
easier than before but ancient humans started to realize the complexities that evolution of money
had created in their life. So, in order to overcome these complexities and the difficulties that
were attached with the benefit of money, the concept of banking emerged in the human mind.
Moving towards the word “Bank”, it is thought to be derived from the Italian word “Banco”,
Latin word
“Bancus” and French word “Banque” because all meant the bench in which the bankers would
keep money and its records.

The Jews of Lambardy were thought to be the early bankers who transacted third business at the
benches in the marketplace and when they were unable to meet their liabilities, the depositors
used to break their benches and this tradition had given birth to a banking term bankrupt. Banks
were first introduced in Rome with its vast trade networks that extended throughout the Europe,
Asia and much of Africa. Following the footsteps of this bank, other banks were also established.
Namely: Bank of Barcelona (1401), Bank of Genoa (1407), Bank of England (1594) and Bank of
Amsterdam (1609). Likewise, India established its first bank, “Bank of Hindustan” in 1770.
(Gupta, 2000)

Nowadays, banks are referred to as lifeblood for business houses as they offer many facilities
like travelers cheque, insurance services, pension services and other investments. The crucial
breakthrough in the modern banking history was made in 1694 A. D when the first modern bank

9
“The Bank of England” was established. After the establishment of this first English Bank,
Banking sector had experienced various ups and downs but still they persisted and because of
that persistence they are now able to exist in this 21st century world as one of the essential
element of human life.

Presently, banks are not only the deposits collecting and loan lending institutions but also the
institutions which helps its customers from various ways as per their convenience and ability
with full security. They had been developed as the essential service providing institutions in this
rushing world. The banks had start affecting the lifestyle of the citizens as well as the economy
of the country as well. The recent recession of 2008 is the outcome of the inefficient banking
practice and the world had to suffer much only because of the inefficiency and negligence of a
single banking sector. Hence, banking had become an important element of the world economy
in the present time.

2. 4 Types of Banks

Banks are classified into various categories based on the function they perform. In Nepal,
basically banks are used as synonyms for commercial banks only. However, central bank,
commercial banks and development banks represent the diversity of banking business in the
country. In Nepal, following types of banks are seen:

1. Central Bank

The Nepal Rastra Bank (NRB) was established in Baisakh 14, 2013 B. S. (April 26, 1956 A. D.)
as a central bank of Nepal to supervises the banks and financial institutions (licensed by the NRB)
in Nepal and guides monetary policy. Nepal Rastra Bank was established in 1956 under the
Nepal Rastra Bank Act, 1955, to discharge the central banking responsibilities including guiding
the development of the embryonic domestic financial sector. Since inception, there has been a
significant growth in both the number and the activities of the domestic financial institutions.

2. Commercial Bank

A Commercial bank is a type of Bank / Financial Institution that provides services such as
accepting deposits, making business loans, and offering basic investment products. Commercial
bank can also refer to a bank, or a division of a large bank, which more specifically deals with

10
deposit and loan services provided to corporations or large/middle-sized business – as opposed to
individual members of the public/small business – Retail banking, or Merchant banks. At present
there are 27 Commercial Bank in Nepal.

3. Development Bank

The bank which is established for the development of different sectors like industrial, agricultural,
infrastructural etc. by imitating the modern system and methodology through financial, technical
and administrative assistance is known as development bank. Development banks in Nepal are
playing vital roles for the development of economy status of Nepal. Nepal has many nationalized
and private banking. There are 18 development banks in Nepal.

4. Finance Companies

The history of financial institutions is not very old. When banking sector started carrying out
current activities of finance company, large number of finance companies was established and
they expanded at a rapid pace in the developed countries, UK and USA in 1960. In the context of
Nepal, there were few insurance companies and Karmachari Sanchaya Kosh working as
nonbanking financial institution before enactment of Finance Company Act, 2042. There are
total 20 finance companies in Nepal.

5. Micro Finance Companies

Nepal is a land locked developing country. Most of the poor people lives in rural areas and have
little opportunity. Micro finance (Micro Credit Development Bank) could help poor people who
do not have any collateral, but willingness to work and a desire to do some business activities
from which he will acquire employment as well as income. At present there are 74 Micro
Finance Companies in Nepal.

2. 5 Evolution of Bank in Nepal

A bank is a financial institution that accepts deposits from the public and creates credit lending
activities can be performed either directly or indirectly through capital markets. Due to their
importance in the financial stability of a country, banks are highly regulated in most countries.
The history of banking in Nepal is believed to be started from the time of Prime Minister
Ranoddip Singh in 1877 A. D. He introduced many financial and economic reforms. The

11
Tejaratha Adda was established at that time and its basic purpose was to provide credit facilities
to the general public at a very concessional interest rate.

The Tejarath Adda disbursed credit to the people on the basis of collateral of gold and silver. All
employees of government were also eligible for this type of loan, which was settled by deducting
from their salary. Tejaratha Adda extended credit only; it did not accept deposits from the public.

But the real banking started with the establishment of Nepal bank limited in 1994 B. S which was
founded by Judda Samsher. It was the first bank of Nepal. Its main function was to provide loans
and accept deposits. Later Nepal Rastra Bank was established as a central bank in 2013 B.

S. The bank was completely government ownership bank and it also started to issues notes since
2016 B. S. Then after, several commercial banks have been established in the recent years.

A sound banking system is important for smooth development of banking system. It can play a
key role in the economy. It gathers savings from all over the country and provides liquidity for
industry and trade. In 1957 A. D. Industrial Development Bank was established to promote the
industrialization in Nepal, which was later converted into Nepal Industrial Development
Corporation (NIDC) in 1959 A. D.

Rastriya Banijya Bank was established in 1965 A. D. as the second commercial bank of Nepal.

The financial shapes for these two commercial banks have a tremendous impact on the economy.
That is the reason why these banks still exist in spite of their bad position.

As the agriculture is the basic occupation of major Nepalese, the development of this sector plays in
the prime role in the economy. So, separate Agricultural Development Bank was established in
1968 A. D. This is the first institution in agricultural financing.

For more than two decades, no more banks have been established in the country. After declaring
free economy and privatization policy, the government of Nepal encouraged the foreign banks
for joint venture in Nepal.

Today, the banking sector is more liberalized and modernized and systematic managed. There
are various types of bank working in modern banking system in Nepal. It includes central,
development, commercial, financial, co-operative and Micro Credit banks. Technology is

12
changing day by day. And changed technology affects the traditional method of the service of
bank.

For the purpose of regulation and controlled NRB had divided the depository financial
institutions into four classes on the basis of minimum paid up capital requirement and functions.
This classification is unique feature of Nepalese banking industry only and there is no such
classification globally. The Nepalese version of classification of depository financial institutions
according the Nepal Rastra Bank and their present number, are shown in table 1.

Table 2.1: Classification of Banks and paid up Capital Requirement

Category Name of Financial Institutions Minimum Paid Up Numbers
Capital

A Commercial Banks 8 Billion 27

B Development Banks 2500 Million 18

C Financial Companies 600 Million 20

D Micro Finance Companies 100 Million 74

(Source: www.nrb.org.np 2021)

For the smooth running of financial institution in the country, NRB has classified financial
institution into four categories. Table 2. 1, shows the classification of financial institution.
According to the classification of financial institution, different paid up capital has been
allocated as shown in the table above.

2.6 Roles of Bank in an Economy

Banks are vital institutions in any society as they significantly contribute to the development of an
economy through facilitation of business. Banks also facilitate the development of saving plans and
are instruments of the government’s monetary strategy among others (Gyanmandu, 2019). The roles
of banks in an economy are:

13
Credit Provision

Credit fuels economic activity by allowing businesses to invest beyond their cash on hand,
households to purchase homes without saving the entire cost in advance and governments to smooth
out their spending by mitigating the cyclical pattern of tax revenues and to invest in infrastructure
projects.
Liquidity Provision
Businesses and households need to protection against unexpected needs for cash. Banks are the
main direct providers of liquidity, both through offering demand deposits that can be withdrawn
anytime and by offering lines of credit. Further, banks and their affiliates are at the core of financial
markets, offering to buy and sell securities and related products at need, in large volumes, with
relatively modest transaction costs.
Risk Management Services
Banks allow businesses and households to pool their risks from exposures to financial and
commodity markets. Much of this are provided by banks through derivatives instruments
transactions. Banks also enable individuals and businesses to take part in the global foreign
exchange and commodity markets indirectly. It would be very difficult for example for a small
company needing only a few million Japanese yen to import a vehicle from japan to get onto the
global currency markets without the aid of a bank.
Rapid Economic Development
The banks make available loans of different periods to agriculture, industry, and trade. They make
direct investments in industrial sectors. They provide industrial, agricultural, and commercial
consultancy hence facilitating the process of economic development.
Promotion of Entrepreneurship
The role of private sector is crucial in accelerating the pace of economic growth. The banks increase
the participation of the private sector in economic development by making available the loans easily
on reasonable rate of interest. The expansion of financial sector encourages entrepreneurs to make
investments by promoting entrepreneurship.

14
 CHAPTER III

INTRODUCTION TO THE NEPAL RASTRA BANK

3. 1 Introduction to Nepal Rastra Bank

Nepal Rastra Bank (NRB) has been incorporated as the Central Bank of Nepal, was established
on April 26, 1956 A. D. under the Nepal Rastra Bank Act, 1955, to discharge the central banking
responsibilities including guiding the development of the embryonic domestic financial sector.
Central bank has a major task and responsibility to stabilize the economic growth and financial
system of the economy. Thus, all the major government fiscal, monetary and economic policies
are being smoothly implemented in the country with the active support and help of the Nepal
Rastra Bank. Nepal Rastra Bank is assigned with basic tasks and responsibilities to promote the
economic welfare of the country in broader perspective. Nepal Rastra Bank is responsible to
create favorable and sustainable conditions of macro-economic development.

NRB is a non-profit organization established under complete government ownership. It manages

a state’s currency, money supply, and interest rates. NRB usually keeps an eye on the
commercial banking system of a country and acts as a banker, advisor, the lender of the last
resort and financial agent of the Government of Nepal.

The central office of Nepal Rastra Bank is located at Baluwatar in Kathmandu. There are 17
departments and one division established to carry out its functions. There are 8 offices outside
Kathmandu Valley. They are located at Biratnagar, Janakpur, Birgunj, Pokhara, Siddarthanagar,
Nepalgunj, Dhangadhi and Surkhet. To reflect the dynamic environment, the functions and
objectives of the Bank have been recast by the new Nepal Rastra Bank Act of 2002.

3. 2 Vision

To become “A modern, dynamic, credible and effective Central Bank”.

3. 3 Mission

To maintain macro-economic stability through sound and effective monetary, foreign exchange
and financial sector policies.

15
3. 4 Objectives of Nepal Rastra Bank

The objectives of Nepal Rastra Bank specified in Nepal Rastra Bank Act are briefly highlighted
below:
• To formulate necessary monetary and foreign exchange policies in order to maintain the
stability of price and balance of payment for sustainable development of the economy.
• To promote economic stability and liquidity required in banking and financial sector.

• To develop a secured, healthy and efficient system of payment.

• To regulate, inspect, supervise and monitor the banking and financial system.

• To promote entire banking and financial system of the kingdom of Nepal and to enhance
its public credibility.

3. 5 Functions of Nepal Rastra Bank

The basic functions of Nepal Rastra Bank specified in Nepal Rastra Bank Act, are briefly
highlighted below:
• To manage note issue and money in circulation in the country.

• To formulate necessary monetary policies in order to maintain price stability and to

implement these polices.

• To formulate foreign exchange polices for the benefit of the country.

• To determine the system of foreign exchange rate

• To manage and operate foreign exchange reserve.

• To issue license to commercial bank and financial institutions to carry on banking and
financial activities and transactions as well as to regulate, inspect, supervise and monitor
them.

• To act as a banker, an advisor and a financial agent of Nepal’s Government.

16
3. 6 Organization Structure of Nepal Rastra Bank

Organizational structure enables the distribution of authority. The central bank has both tall and
flat organizational structure. As per section 14 of Nepal Rastra Bank Act, 2002, the Board of
Nepal Rastra Bank comprises of seven members: four ex official members - the Governor (who
is the Chairman), the Secretary, Ministry of Finance, two Deputy Governors, and three other
Directors, who are appointed from amongst the persons renowned in the field of Economics,
Monetary, Banking, Finance and Commercial Laws. The Governor, Deputy Governors and other
Directors are appointed by Government of Nepal, Council of Ministers for term of five years.
Government may, reappoint the retiring Governor for another one term and the retiring other
Directors for any term, if it is deemed necessary.

Figure 3.1: Organizational Structure of Nepal Rastra Bank

Source: www.nrb.org.np (2022)

17
Nepal Rastra Bank is central regulating body of financial institution in Nepal. It consists of
diverse range of financial activities performed by various branches and division. There are a
total of 17 departments with sub-departments, 2 department level offices, divisions, and one
unit functioning in 9 different districts, two being in Kathmandu itself.

The departments of NRB are as follows:

1. Economic Research Department

2. Banks and Financial Institution Regulation Department

3. Foreign Exchange Management Department

4. Currency Management Department

5. Financial Management Department

6. Human Resource Management Department

7. Internal Audit Department

8. Assets and Services Management Department

9. Monetary Management Department

10. Non-Banking Financial Institutions Supervision Department

11. Financial Institutions Supervision Department

12. Development Bank Supervision Department

13. Micro Finance Institutions Supervision Department

14. Information Technology Department

15. Corporate Planning and risk Management Department

16. Payment Systems Department

18
17. Bank Supervision Department

(Nepal Rastra Bank, 2022)

As an Intern I was assigned to observe and do job in the divisions and sections of Banking
department. Banking department is the main part of NRB operation. It undertakes diverse
work being the agent of government, as bank of banks and financial institutions. Banking
department manages account of government agencies & commercial banks, collects
revenue , makes cash payment from the government accounts, transfers from controller’s
offices to the designated accounts as per the instruction, prepares drafts, remits amounts
within the country and outside, public debt management functions i.e. keeping accounts of
the government securities, payment of interest and principle of government securities,
payment of the pension to the retired NRB staffs, determination of fiscal position of the
government by consolidating government transactions undertaken by commercial banks on
behalf of NRB. Kathmandu Banking Department has also been operating a clearing house,
which is responsible for clearing and settlement of negotiable instruments (cheques and bills)
in Kathmandu valley from the member banks and financial institutions. There are various
sections under banking department like:

• Administration Section,

• Transfer Section,

• Ledger Section,

• Electronic Cheque Clearing Section,

• Foreign Exchange Section

• Remittance Section

• Letter of Credit Section

• Indian Currency Section

• Refinance Section

19
3.6.1 Functions of the section

3.6.1.1. Ledger Section

This department acts as customer service department which is responsible to provide various
initial services to the government organizations, financial institutions and public institutions.
It performs various activities under this section which are:

3.6.1.1.1 Pension payment

Every month the pension is paid to the retired NRB staffs upon presenting the RED BOOK
which holds the details of their account number, name, address, employee identification,
service period, position during retirement, nominee of the account. With the input of account
number in the system of NRB i.e. Olympic we can easily get the information on how much
pension is to be paid. After the signature verification of the retired employee or the nominee
the pension amount is debited from the respective account. This is again validated by
another staffs and if all the details are correct then payment is made. If the retired staffs is
unable to come to take the pension then he/she can send some other person with the signed
application “manjurinama” of taking the pension amount on his/her behalf. But this works
only for three months and after that the employee him/herself should be present. This rule is
made to avoid the fraud.

3.6.1.1.2 Account opening

Another function performed by ledger department is to open the account of the government
organization, financial institutions and public institutions which is done after fulfilling the
following criteria’s:

• Recommendation letter from Financial Comptroller General Office (FCGO) and other
concerned government offices to open current account

• Signature card with the name and position along with signature of minimum two
authorized person of concerned organization

• Letter from the respective offices

• Signature card should include stamp of that organization and should be verified by
Financial Controller General Office (FCGO).

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3.6.1.1.3 Signature updates

During the course of operations there occur changes in the members of management
committee, board of directors. Hence, this department updates the signature of the newly
appointed members by removing the previous one which is done after the following criteria:

• Letter from the respective organization with the authorized signature to change and update
the signature

• Brief information on which signature to be cancelled and to be replaced.

• Valid reason on why signature is being changed.

• Stamp of the organization on the signature card as well as application letter.

• The process is made after the deputy director validates the letter and signature card
followed by signature scan and update in the system.

3.6.1.1.4 Issuance of cheque books

The function of the ledger department is to issue the cheque books to the organizations that
have accounts in NRB. The cheque is used by the organization to make the various payment
and transfers to their concerned parties. The cheque is issued upon fulfilling the following
criteria:

• Letter from the respective organization demanding the issuance of new cheque book with
minimum two compulsory authorized signatures, stamp of the organization and name of
the staff send.

• Presentment of demand slip attached in the previously issued cheque book.

• ID photocopy of the staffs who will receive the cheque on behalf of the organization.

• If all the details is found feasible then the cheque is issued by imputing the cheque
numbers in particular account in the system as well as register.

• A signature card is also given to the person who is receiving the cheque which needs to be
duly signed by the authorized person and bring back to ledger department.

• Upon receiving the signature card, cheque is then made valid to use.

21
3.6.1.1.5 Interest and principal payment on development bonds

With the view to balance the supply and demand of money in the market NRB issues the
90days treasury bills, promissory note as well as development bonds to make investment.
When the money is being hold by the public then this instruments are issued in order to
make the investments in the development of the country. This department then provides the
interest amount semi-annually or annually along with the principal amount on the time of
maturity. This activity is performed after fulfilling the following criteria:

• Presentment of the original certificate of T-bill, promissory note or development bond

which contains information regarding the amount, interest rate, maturity date, date and
place of issuance, and issuer's signature issued by NRB.

• Liable person or (manjurinama) from the authorized person to get the interest and
principal amount.

• Civil and national bond interest payments are done in every 6 months. For financial
institutions 15 percent tax will be imposed and for individual 5 percent.

3.6.1.2 Transfer Section

Essentially, an electronic funds transfer is a transaction by which funds move from one
institution to another or one account to another at the direction of an institution’s customer
and through the transmission of electronic instruction messages that cause the institutions to
make the required bookkeeping entries and make the funds available. The funds transfer
process generally consists of a series of electronic messages sent between financial
institutions directing each to make the debit and credit accounting entries necessary to
complete the transaction. NRB uses Olympic software to transfer funds as per the message
or voucher received for transfer. This transfer of fund may be through electronic instruction
messages (SWIFT) or through cheque. The second and another important activity performed
by the transfer department is recording the tax voucher. Various organizations have to pay
tax to the government, and this is paid by organization through NRB.

22
3.6.1.3 Electronic Cheque Clearing (ECC) Section

Nepal Rastra Bank in collaboration with Nepal Clearing House Ltd (NCHL) operates ECC
system in Nepal. ECC System offers banks and financial institutions with an electronic
medium of cheque clearing and establishes a national payments gateway to facilitate
electronic payments & financial transactions across banks and financial institutions within
the country. This system has been made possible through the establishment of Nepal
clearing house limited (NCHL). Nepal Clearing House Limited (NCHL) is a public limited
company established on 23rd December 2008(9thMangsir 2065) under the leadership and
guidance of Nepal Rastra Bank (The Central Bank of Nepal) and Nepal Bankers Association.
NCHL initially implement and operate NCHL-ECC System in Nepal offering banks and
financial institution with an electronic medium of cheque clearing and later, establish a
national payment gateway to facilitate electronic payments and financial transactions across
banks and financial institutions within the country.

Electronic Cheque Clearing (ECC) System provides means to electronically transfer cheque
images through a secure medium thus completely replacing the traditional physical routine
of moving paper-cheque among the banks and clearing house, which has resulted in
significant reduction of tedious and time consuming manual process of cheque clearing, both
for the banks and for the customers.

Individual banks and financial institution are enrolled within NCHL network as participating
members and are responsible for their clearing operation. It has 128 members including bank
and financial institutions. The software used for electronic cheque clearing is Progress soft.
Nepal Clearing House (NCH-ECC) currently support cheques clearing of four currencies
like Nepalese, U.S Dollar, GBP, and Euro Dollar with presentment cut off time at 14:00,
paying bank response cut-off time at 15:00 and final settlement at 15:30 for standard, regular
(Magnetic Ink Character Reader (MICR)) cheques. Previously non-standard (existing
nonMICR) cheques were also presented for clearing but from 1st Ashoj 2072 only MICR
cheques were accepted.

This department with the help of NCHL performs various functions which are as follows:

3.6.1.3.1 Clearing Outward:

23
Clearing outward is the process of crediting the account of the organization having account
in NRB. In clearing outward section, the customer presents cheques of different commercial
banks and financial institutions to be deposited to different accounts of NRB. Upon
receiving the other institutions cheque, outward section of NRB signs and endorses it, then
scans it and sends to concerned authority through progress software. It sends cheque to
respective banks for approval to deposit amounts to different payee’s accounts maintained at
NRB. The cheques presented are generally of four currencies i.e. Nepalese, U.S Dollar, GBP,
and Euro Dollar.
The following works are done under clearing outward:

• Verifying the received physical cheques of other institution. (cheque date, amount, signature,
stamp)

• Bank ECC stamp and endorsement stamp were to be put once the cheque was verified.

• Scan the cheque and input the data such as account no, branch no, amount, date in the
Software.

• Send the scanned cheques to the concerned institution for clearing.

• Check whether the cheques are approved or not, if not correct the mistake and send again.

3.6.1.3.2 Clearing Inward:

Clearing inward is the process of debiting the account of the organizations which have
account in the NRB upon the verification and acceptance of cheque presented electronically.
In this process the cheque of NRB presented in other financial institutions is scanned and
send through progress software. Original cheque remains with the concerned financial
institutions. Upon Checking the cheque no., a/c payee stamp, amount in figure and words,
date, account no. from face cheque and checking endorsement stamp, reference a/c from
back, the cheques are accepted which goes to Manual CFI. From Manual CFI both the
accepted cheque and rejected cheque go to Financial clearing with reason specified for
rejection of cheque. From there, after verification for sufficient balance and signature, the
cheques go to Clearing Approval and finally accepted cheques are send to NCHL for final
clearing that facilities electronic payment.

24
3.6.1.3.3 Final settlement:

This final settlement is related to making the final settlement of clearing by debiting or
crediting the account of government organization and financial institutions as per the
information received from NCHL. NCHL receives information regarding the cheque being
present, accept and reject. With this it makes the final report regarding the settlement of the
amount by showing whether the particular organization account needs to be debited or
credited. In settlement, if the cheque payment (Dr) is higher than deposit (Cr) of the
organization then its account needs to be debited and vice versa. Upon receiving the
information at 3pm ECC department makes the final settlement by posting it to the system.
Since ECC at Baluwatar, being the central office for cheque clearing maintains parking
account of NRB, it settles the accounts of all the branches of NRB.

3.6.1.4 Foreign Exchange Section

As name suggests, this section works for exchanging the Nepalese currency to foreign one and
vice versa. There were three sections in this department being remit in, remit out, L/C and IC.
Remit in was the section where foreign currency was exchanged into Nepalese and remit out is
the reverse one where Nepalese rupee is taken in exchange of foreign one. In remit out, SWIFT
message were also transferred to other banks. The Society for Worldwide Interbank Financial
Telecommunication (SWIFT) provides secure electronic financial messaging services to
financial institutions. SWIFT represents an extensive telecommunications network by which a
financial institution in one country can communicate with its branches or correspondent
institutions anywhere in the world. Remit in and out deals only with the transactions of
government staffs or the government organizations. Others had to do their transactions from
commercial banks.

25
 CHAPTER IV
ANALYSIS OF ACTIVITIES DONE AND PROBLEM SOLVED
The internee started internship from 14th February, 2022 which ended later in 8th May, 2022.
During the entire period of twelve weeks of internship, I was placed in five section: Foreign
Exchange Section (Remittance section & IC section), ECC Section, Internal Administration and
Ledger Section. The supervision and assignment of the tasks were done by the respective heads
of the sections. The jobs performed by me in various section are as follows:

4.1 Activities Performed in Nepal Rastra Bank

Foreign exchange section in NRB is divided into two sections. They are: Remittance and IC.

4.1.1. Activities Performed in Remittance Section

• Check the documents required to fill the remit in and remit out form.
• Help individuals to fill the form in case they need help.
• Direct them to get the authorization.
• Prepare voucher once the authorization is obtained.
• Posting date, amount and currency code in passport.
• Send document for further processing.
• Once processing was completed the individuals were sent to counter for payment.

4.1.2. Activities Performed in Indian Currency Section

In IC section, the internee was responsible for recording the information of those who were in
this department for buying Indian Currency. I had to record the name of customer, passport
number or citizenship number or code of employee if they were employee of NRB, their contact
number and amount to be exchanged once they fill the Indian Currency exchange form. Also I
had to ask them if they have tried to exchange Indian currency in any other commercial bank or
not before coming.

26
4.1.3 Activities Performed in ECC Section:

This department is held responsible for providing loans to various entities whether it be bank or
any other financial institutions for the purpose of re-finance at different terms and conditions. In
other words, NRB provides loans to those organizations which have already provided loan to any
other projects. These projects on which BFI’s have provided loan to submit their documents to
those BFI’s which provides loan to them. Similarly, BFI’s applying for loan in re-finance should
submit all the documents of the projects along with the loan providing documents to NRB. NRB
should keep these records regarding re-finance safe for up to 10 years according to NRB
Directives. So, in this department I was responsible for recording various data’s of those
documents such as the company’s name that was applying for re-finance, when the loan was
approved, in what date loan was disbursed and final date of loan payment by the organization.

4.1.4 Activities Performed in Ledger Section

This department acts as customer service department which is responsible to provide various
initial services to the government organizations, financial institutions and public institutions. I
was allowed only to perform Pension payment in this section. As intern were not given full
access to look after other transactions that takes place in ledger section.

4.1.5 Activities Performed in Internal Administration Section

Internal administration means activity which ensures an independent functioning of the data
controller (structure administration, personnel management, management and use of available
material and financial recourses, and clerical work). The major tasks associated with internal
administration of Nepal Rastra Bank on which I were: Filing the documents, preparing letters
under the guidance of NRB staffs, transferring necessary filed and documents in different
sections of banking department.
4.2 Issued Identified

During my intern period I found various problems and issues in the departments which were
creating hindrance in the smooth operation of the work. Some of the issues were:

● Lack of process layout

27
This is the major problem I found in NRB. In every department I found the lack of proper process
layout. In order to accomplish one task, the flow of the process is not smooth. For E.g.: in the ledger
section the after the entry is made in counter, to validate one has to reach another corner and to
make payment to another again to another corner. The desks of staff are placed inappropriately
which made it difficult to communicate with each other.

● Overstaffing

Another major issue is the overstaffing. In most of the departments I saw that the staffs have more
leisure hours than work hours.

● Uneven distribution of job

There is an uneven distribution of jobs where some staff have more workload whereas some have
minimum.

● Lack of technical knowledge/competency

With the replacement of manual recording by software installment it has decreased the workload but
still some of the staff are not efficient in using the system, software’s as well desktop. They highly
need proper technical knowledge and training.

● Lack of maintenance of logistics

I highly found the lack of maintenance in terms of keeping the records on books, files and so on.
There is a lack of proper storage and filing. The maintenance is needed for computers, printers,
buildings, rooms, furniture and so on.

● Lack of communication

There is also lack of communication between the departments or in the hierarchy level. For instance
in most of the cases fax messages were made twice due to absence of upper level employees like:
executive director, director and deputy director.

4.3 Problems Solved

● During reconciliation, sometimes if a debit item does not match with a credit item then such
transaction must be informed to the supervisor.

28
● As staff are tired of teaching how to perform the activities to every new intern, the intern
teaches every new intern regarding activities needed to carry in that department by internee.

● Records regarding increased pension are not recorded in the pension book for a long time,
thus Internee recorded all those records.

● Help to fill up the form in case customers who are not literate or old aged.

● Handling the phone calls when no staff is around.

● Engaged in calming down the customer who lost their temper, by giving them proper
explanation mainly when an accountable person was not around.

● When NRB staff are busy with their stuff. At that time I solve the customer queries.

● Big crowd was handled by placing their cheque or any authorized document in the queue, this
way they waited for their turn patiently.

29
 CHAPTER V
CONCLUSION AND LESSON LEARNT
5. 1 Conclusion

Central bank is the bank of all banks. It is the supreme body, which controls and stabilizes the
economy of the country through various direct and indirect means. In direct means, it uses the
monetary policy as a tool to expand and contract the economic activities of the country and in
indirect means; it uses tools like issuance of treasury bills, national savings bond, and bank rates
etc. central bank neither maintains accounts of public nor does it give loans to the public. Nepal
Rastra Bank which was established in 26th April 1956 is the central bank of Nepal.

The 12 weeks as intern at Nepal Rastra Bank has been one of the most productive and fruitful
time during course of my Bachelors in Business Administration. This internship has broadened
my knowledge, vision, ability, management skill and confidence to perform in real working
environment. It was a great chance to gain practical knowledge of banking sector. The
practical cases are rather different from that we study in theory. Further intern has also become
versed to get socialized with the diversified people, to deal with the senior staffs, and to deal
with the intern colleague so as to make the working environment cheerful, pleasant and
friendlier. This program has helped the intern to gain confidence in dealing with people and
develop communication, decision making and interpersonal skill. Beside this, the supervisors
were extremely helpful in guiding on the internship program.
It was a great experience working as an intern in NRB. The operational environment was
benevolent. There was good communication, healthy competition and healthy relationship in
between the personnel of NRB. Working as an intern was a great opportunity to develop
conceptual and analytical knowledge about banking sector in Nepal. Interpersonal skill was
also enhanced during the course of twelve week period. Furthermore I got a chance to engage
in corporate environment fostering the ability to face the challenges and opportunities in the
workplace. I also got to analyze and experience how people work in a team. Thus, the
knowledge and experience endowed with this study will surely be constructive towards the
pavement of my career and professional life.

30
Overall, my internship at NRB has been a success. I was able to gain practical skills, work in a
fantastic environment, and make connections that will last a lifetime. This experience will not
only be beneficial today but also in the future where I’m exposed to work in the real life. I could
not be more thankful.

5. 2 Lessons Learnt

The duration of internship lasted for around three months and during the course of the internship
there were various lessons that intern was able to learn. This internship was a great opportunity
for an intern to face real-life work scenarios after four years in the classroom, and it must be said
that it was a great learning experience. Some of the lessons learnt during this time as an assistant
trainee at NRB could be summarized as follows:

Table 5.1: Lessons Learnt

Personal Learning Professional Learning
Positive Attitude Punctuality
Extrovert Managerial Skills
Trust Communicating Skills
Mutual Respect Customer Handling Techniques
Collective Responsibility Typing Skills

5. 2. 1 Personal Learning

Explaining about personal learning, internee have learned and realized that whatever, where ever
you work one always needs to have positive attitude for better performance, this helps to gain
self-confidence.

The following are the personal learning that internee learned from internship period:

1. Internees have learnt to be extrovert; communicative to the co-workers, earlier, as internee

was a bit introvert being less open communicative with others.

2. Internees have realized one should trust team members as trust influence your
involvement and maintain the creativity within the team members.

3. While working in team internee also came to realize, one factor which maintains the team
chemistry and combined effort is mutual respect among members.

31
4. Personally, internee have also learnt things that helped her to understand and analyze my
weakness and converting them to my core strengths.

5. While performing in group or teamwork, every member should have a feeling of

collective responsibility; this makes equal participation in the task from every team
member.

6. Equally one should take care of their team members because a task is result of combined
effort and if one member doesn’t work as standards, the whole team attempt to
assignment is pulled back or dropped down.

32
 REFERENCES

Baral, H (2021). Record Management and Digitization of Employee Record of Nepal Rastra
Bank. Unpublished Manuscript. Faculty of Management, Tribhuwan University.
Gautam, R.R., Gurung, R., Pokharel, J., Kandel, R., & Sigdel, S. (2011). Foundation of financial
institutions & markets. Kathmandu, Nepal: Ayam Publication Pvt. Ltd.
Kalika, S.N. (2019) Evolutionary overview of central banking in Nepal. An account of law and
practice. Management dynamics, 22(1), 107-120.
Koirala, S (2022). An Internship Report on Nepal Rastra Bank (Foreign Exchange Management
Department). Unpublished Manuscript.

Kolb, R.W & Rodriguez, R.J. (1996). Financial Institutions & Markets. Massachusetts:
Blackwell Publishers, Inc.

Nepal Rastra Bank. (2014). Nepal Rastra Bank- Then, Now, and Ahead. Kathmandu: Nepal
Rastra Bank, Office of the Governor.

Nepal Rastra Bank. (2015). Current status of banks after merger and its effectiveness. Retrieved
from https://ww.nrb.gov.np/
Nepal Rastra Bank. (2018). Nepal Rastra Bank. Retrieved May 1, 2018, from Nepal Rastra Bank
Website: https://www.nrb.org.np/about/

Rose, P.S., Hudgins, S.C. (2010). Bank management and financial services. Delhi: Tata McGraw-
Hill Education Private Limited.
Thapa, K. (2017). Commercial Bank Operations. Kathmandu: Khanal Publication Pvt. Ltd.

Thapa, K. (2017). Financial markets and institutions. Kathmandu: Khanal Publication Pvt. Ltd.

Thapa, K. & Neupane, D. K. (2010). Banking and insurance. Kathmandu: Nepal, Asmita
Publication Pvt. Ltd.
Tuladhar, B.R. (2019). An Internship Report of Nepal Rastra Bank (NRB). Unpublished Manuscript.
Reveka Kuwar (2021). Internship report on Nepal Rastra Bank.
 ANNEX

S.N Name of the Bank Country Date of Establishment

1. Bank of England U.K. 1695

2. Bank of France France 1800
3. Bank of Netherlands Netherlands 1814
4. Bank of Norway Norway 1817
5. Bank of Austria Austria 1817
6. National Bank of Denmark Denmark 1818
7. National Bank of Belgium Belgium 1850
8. National Bank of Russia Russia 1860
9. Bank of Spain Spain 1856
10. Reichs of Bank of Germany Germany 1868
11. Bank of Japan Japan 1882
12. Federal Reserve Bank U.S.A 1914
13. South Africa Reserve Bank South Africa 1921
14. Rserve Bank of Peru Peru 1922
15. Bank of Poland Poland 1924
16. Central Bank Of China China 1928
17. Reserve Bank of India India 1935
18. Bank of Canada Canada 1935
19. Bank of Thailand Thailand 1942
20. State Bank of Pakistan Pakistan 1948
21. Nepal Rastra Bank Nepal 1956(2013/01/14)