GENERAL BANKING OPERATIONS OF RASTRIYA

BANIJYA BANK LIMITED, THIMI BRANCH

AN INTERNSHIP REPORT

Submitted by

Rojan Awal
Bhaktapur Multiple Campus
Exam Roll No: 24904/19
TU Regd. No: 7-2-20-650-2019

Submitted To
Office of the Dean
Faculty of Management,
Tribhuvan University

In partial fulfillment of the requirements for the Degree of

Bachelors of Business Administration (BBA)

Dudhpati, Bhaktapur
July, 2024
INTERNSHIP COMPLETION LETTER

ii
 DECLARATION

I hereby declare that this internship report entitled “General banking operations of Rastriya
Banijya Bank Limited, Thimi Branch” which is submitted by me in partial fulfillment of the
requirements for the award of BBA degree of Tribhuvan University comprises only my original work
and due acknowledgements have been made to materials used in the report.

………………………
Rojan Awal
July 2024

iii
 BONAFIDE CERTIFICATE

Certified that this Internship report

General banking operations of Rastriya Banijya Bank Limited, Thimi Branch
is the bona fide work of

Rojan Awal
who carried out the Internship Report under my supervision. This report is forwarded for
examination.

………………….. ………………….
Mr. Gopi Bhandari Tulsi Ram Ghemosu
............................
Supervisor Program Director
Signature
Name of the External Examiner:
July , 2024

iv
 ACKNOWLEDGEMENT

This report is an outcome of hard work, which is designed to help the readers who have the better
understanding of the banking scenario of Nepal with reference to Rastriya Banijya Bank Limited. Many
people have devoted their precious time and effort in the course of preparing this report. I would like to take
this opportunity to acknowledge all of them who helped me directly or indirectly.
I would like to express my deepest gratitude to Mr. Gopi Bhandari as a Supervisor for valuable guidance,
priceless suggestions and inspiring me to prepare this internship project. I would like to express my gratitude
to all those helping hands without their help the assignment of writing this report would have been much
difficult. Especially I would like to thanks to Dr. Kabita Luitel (Campus Chief), Mr. Tulsi Ram Ghemosu
(Program Director), Dr. Gauri Bhuju (Deputy Director) for his utmost support to the college so that we
are successfully writing internship report today. And all the lecturers of the Bhaktapur Multiple Campus for
their guidelines and suggestions to prepare this project I am thankful to all other faculty and staff members
of our college for their kind co- operation and help.
I am grateful to my Branch Manager of Rastriya Banijya Bank Limited, Mr. Achyut Bista for his continuous
support, encouragement and guidance. Moreover, I would like to thank Mr. Ukesh Nhisutu, Mrs. Prabigya
Shiwakoti, Mrs Prativa Shahi, Mr. Rangun kumar Shrestha, Mrs. Kuruna Shrestha for their support and co-
ordination.
Similarly, I would like to thank Dhurba Dahal and other staffs for their support and immense help. Thanks to
Tribhuvan University for including internship in partial fulfillment of the requirements for the degree of
Bachelor of Business Administration (BBA) program.Similarly, Thank you to all relatives, friends, family
members and others who in one way or other shared their support either morally, physically and financially.

Rojan Awal
Bhaktapur Multiple Campus

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 TABLE OF CONTENTS
Internship Completion Letter.........................................................................................................ii

Declaration.....................................................................................................................................iii

Bonafide Certificate.......................................................................................................................iv

Acknowledgement........................................................................................................................... v

List of Tables..................................................................................................................................ix

List of Figures.................................................................................................................................x

Abbreviations................................................................................................................................. xi

CHAPTER I....................................................................................................................................1

INTRODUCTION..........................................................................................................................1

1.1 Background of the Study..............................................................................................................1

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

1.3 Methodology of the Study............................................................................................................2

1.3.1 Organization selection...............................................................................................................3

1.3.2 Placement.................................................................................................................................. 3

1.3.3 Duration.....................................................................................................................................4

1.3.4 Activities Performed..................................................................................................................4

1.5 Limitation of the Study.................................................................................................................6

CHAPTER II..................................................................................................................................8

INTRODUCTION OF BANKING INDUSTRY......................................................................... 8

2.1 Introduction to Banking Sector and Bank.................................................................................... 8

2.2 History of Banking....................................................................................................................... 9

2.3 Present Scenario of Nepalese Banking Sector..............................................................................9

2.4 Challenges and Opportunities.....................................................................................................10

2.4.1 Threats/Challenges of the Banking Industry...........................................................................10

2.4.2 Opportunities of the Banking Industry....................................................................................10

2.4 Evolution of Banking Sector in Nepal........................................................................................10

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 CHAPTER III...............................................................................................................................12

INTRODUCTION TO THE ORGANIZATION...................................................................... 12

3.1 Introduction of Rastriya Banijya Bank Limited.........................................................................12

3.2 Vision and Mission Statement....................................................................................................12

3.2.1 Vision:..................................................................................................................................... 12

3.2.2 Mission:................................................................................................................................... 12

3.3 Goal/Objectives of RBBL.......................................................................................................... 13

3.3.3 Present situation of RBBL.......................................................................................................13

3.7 SWOT Analysis of RBBL..........................................................................................................14

3.5.1 Strengths of Rastriya Banijya Bank Limited (RBBL).............................................................15

3.5.2 Weaknesses of RBBL..............................................................................................................15

3.5.3 Opportunities for RBBL..........................................................................................................16

3.5.4 Threats to RBBL......................................................................................................................16

CHAPTER IV...............................................................................................................................18

JOB PROFILE AND ACTIVITIES PERFORMED................................................................ 18

4.1 Overview.................................................................................................................................... 18

4.2 Activities Performed in the Organization...................................................................................18

4.2.1 Customer Service Department.................................................................................................18

4.2.2 Electronic Cheque Clearing Department.................................................................................21

4.2.3 Administration Pension Department....................................................................................... 21

4.2.4 Experience in Internship..........................................................................................................22

4.3 Problem Faced and its Solution.................................................................................................22

CHAPTER V................................................................................................................................ 31

CONCLUSION AND LESSON LEARNT.................................................................................31

5.1 Conclusion..................................................................................................................................31

5.2 Lesson Learnt............................................................................................................................. 31

5.3 Observed Gap between Theory and Practice..............................................................................32

5.4 Feedback to Organization...........................................................................................................33

5.5 Feedback to the College/University........................................................................................... 33

REFERENCES
vii
APPENDICES

viii
 LIST OF TABLES

Tables No: Page No.

Table 2.1 Classification of Banks 11
Table 2.2 Classification of the FIs 12
Table 3.1 Branch Network 15
Table 3.2 Board of Director 15

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 LIST OF FIGURES

Figures No: Page No.

Figure 1.1 Duration 4
Figure 3.1 Swot Analysis 17

ABBREVIATIONS

x
ABBS : Any Branch Banking Service
AD : Anno Domini
ADSL : Asymmetric digital subscriber line
ATM : Automated Teller Machine
BAFIA : Bank and Financial Institution Act.
BBA : Bachelors in Business Administration
BLB : Branchless Banking
BOD : Board of Directors
BS : Bikram Sambat
CDM : Cash Deposit Machine
CEO : Chief Executive Officer
CSD : Customer Service Department
ECC : Electronic Cheque Clearing
KYC : Know Your Customer
L/C : Letter of Credit
MICR : Magnetic Ink Character Recognition
MS : Micro Soft
NTC : Nepal Telecom
RBB : Rastriya Banijya Bank
RBBL : Rastriya Banijya Bank Limited
RIDA : Research Inputs and Development Action
SFAFDB : Students Financial Assistance Fund Development Board
SWIFT : Society for Worldwide Interbank Financial Telecommunication
TU : Tribhuvan University
USD : United State Dollar

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 CHAPTER I
INTRODUCTION
1.1 Background of the Study
This report is prepared in partial fulfillment of the degree of Bachelor in Business

Administration (BBA), an undergraduate course under Tribhuvan University (TU). The

main objective of the internship is to help students understand the real working environment as
well as to apply the knowledge they have gained in the classroom into the real business
practices. The internship enables the students to be acquainted with the practical aspect of the
Nepalese business environment. This program also helps to know how the organization as a
whole operates and also how communication takes place and activities are coordinated in the
corporate world. It focuses on middle-level managerial skill and knowledge enhancement
under the supervision of faculty of management (FOM) to deliver applied education in the
field of economics, finance, marketing, business environment, and information technology
along with current affairs and changes that occurs in the management field.

This course creates the platform to enhance the practical based learning process by
synthesizing theoretical concepts with real time examples and experiences. To achieve this
practical based learning process and enhance the knowledge of the students, students must
undergo internship program in their final semester i.e. Eighth semester. The Nepalese
financial sector is composed of banking and non-banking sectors. Banking sectors comprise
of class A, B, C and D class institutions mentioned in Nepal Rastra Bank Act, 2058. Class A
institutions are commercial banks, Class B institutions are development banks, class C
institutions are finance companies and class D institutions are micro- finance companies.

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

a job. It is a job taken by a student in order to learn a profession or trade. Internship is an
opportunity to observe, learn, understand and participate in the corporate culture. As
internship nourishes the student with pragmatic concept of job design and job requirements, it
is often regarded as the first step in career development.

1
An internship is an extensive program through which an intern can learn the practical aspects
of what is taught between 4 walls of a classroom. It provides golden opportunity to generate
quality education because it enables us to learn, observe and understand the real corporate
world. Most importantly, the internship could be regarded as the first step of career
development. The internship enables the students to be acquainted with the practical aspect of
the Nepalese business environment. This program also helps to know how the organization as
a whole operates and also how communication takes place and how activities are coordinated
in the corporate world. Thus, the internship program can be regarded as a fruitful opportunity
for the students of BBA to be familiar with corporate work of Nepal.

In case of banking market, there is wider diversification in a commercial bank. Commercial

banks provide the largest number of placements under different branches and departments.
The general banking practices of RBB is the main focus of this study. There is the provision
of job rotation, generalization in organizational environment. Therefore, choosing a
commercial bank can be perceived as a wise decision as internee can learn wider area under
same roof.

1.2 Objectives of the Study

Every kind of study has its own objectives. Without objectives nothing can be accomplished.
The main objectives of this report are to acquaint the BBA student like us with the reality of
organizations’ functioning and to undertake in depended analysis and the appraisal of
situation. The general objective of this report is to partially fulfill the requirement for the
degree of BBA. However, the specific objectives are as follows:-
 To gain practical insight of the real working conditions.
 To acquire sound knowledge about the organization's policies and principles.
 To familiarize with day-to-day activities carried out at customer department services.
 To conduct the SWOT analysis of RBBL.

1.3 Methodology of the Study

A systematic approach and methodology are needed in order to do any type of study and
prepare report on that study. Intense research has to be done in order to get the appropriate
results. This internship report has been designed to give a clear picture of the operations
performed in Rastriya Banijya Bank. The study is based on both primary and secondary data

2
collection methods. The methodology explains the efforts undertaken for selection of
organization, placement at department, duration of internship and general overview of the
activities performed during the internship period.
 website of RBB
 Annual reports, different statement file, balance sheet and various documents
and other published data

1.3.1 Organization selection

I selected RBB for my internship primarily due to its convenient location near my home,
ensuring an easy and efficient commute. The paid internship was a significant factor in my
decision, as it reflects the organization’s commitment to valuing and compensating its interns
for their efforts. Additionally, RBB offers a unique opportunity to gain hands-on experience
with their advanced systems, which is essential for my professional growth. The company's
reputation for providing a supportive learning environment further solidified my choice, as it
aligns with my goal of acquiring real-world skills while being guided by experienced
professionals. This combination of convenience, financial support, practical exposure, and a
strong learning culture made RBB the ideal choice for my internship.
1.3.2 Placement
My placement at the Thimi branch of RBB was a pivotal aspect of my internship, offering a
well-rounded experience that significantly contributed to both my professional and personal
development. The branch’s proximity to my home was particularly convenient, reducing
commute time and allowing me to fully immerse myself in the tasks at hand. This strategic
location, combined with RBB's structured internship program, ensured that I was placed in a
role that not only matched my skills but also presented challenges that encouraged growth.

Throughout my time at RBB, I was exposed to real-world projects and responsibilities that
enhanced my understanding of the industry. The hands-on experience with the company’s
advanced systems was invaluable, equipping me with practical skills that are crucial in
today’s competitive job market. The supportive environment, enriched by mentorship from
seasoned professionals, fostered an ideal learning atmosphere where I could seek guidance
and receive constructive feedback on my work.

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Moreover, the diverse range of responsibilities I was entrusted with helped me develop
critical thinking and problem-solving skills, which are essential for success in any
professional setting. Overall, my placement at RBB was instrumental in my career journey,
providing me with the tools, confidence, and practical knowledge to excel in future
endeavors. The combination of convenience, structured learning, and real-world exposure
made this experience an invaluable component of my professional growth.
1.3.3 Duration
As prescribed by Tribhuvan University, the internee joined the bank for 8 weeks from 28 th
April, 2024 A.D. to 21st June, 2024A.D. During this internship period of Eight weeks, the
internee was able to learn about the bank’s culture, working environment and the working
procedure of the various department of the bank. The duration of internship can be shown in
the following figure:

Dur ati on s pan

4.5

3.5

2.5
Weeks

1.5

0.5

0
CSD Departments ECC PENSION

Figure 1.1 Duration span

1.3.4 Activities Performed

As Intern was placed in various departments, Intern performed various activities related with
each department. This section includes the study based on the internship period and the
various tasks performed during the stay in bank. From first to four week of internship intern
was placed in customer service department of Rastriya Banijya Bank. After that intern was
placed at electronic cheque clearing department for the cheque clearing facilities for three
weeks.

4
In remaining one weeks, intern was placed at pension department. Intern used to assist the
bank client in providing information and handling documents in customer service desk. Intern
had user account to access Pumori Software (banking software) with which Intern performed
the tasks. The activities that internee performed during internship period are as follows:

 Customer Service Department (CSD)

 Clearance Department

 Pension Department

A) Customer Service Department

Customer Service is often known as front desk or help desk of an organization. It provides all
necessary information to the customers, therefore the person inside of the desk also should be
well known about organization system. It is the window through which bank sees its customer
and customer interact with bank. It is the image icon of the bank so good customer service
means good image of bank. Under this department following activities are done:

i. Customer Counselling

 Providing information about products to the customers

 To respond to the customer queries.

 To provide different types of forms and vouchers.

ii. Account Operations

 Account opening

 KYC (Know Your Customer) update

 Account closing

 Balance checking

 Filing and documentation of different accounts.

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 iii. Distribution Activities

 Customer’s statement printing.

 Accept requisitions for cheque books.

 Issuing cheques

 Recording and distribution of cheque books.

B) Cash Department

Teller is the department of cash deposit and cash payment. Here the customer can deposit
cash in their own account as well as other person account by filing up the deposit slip and
withdrawal can be made through cheque or withdrawal slip. Following are the activities done
in teller department:

 Accepting deposit.

 Payment for cheque.

 Verify the signature.

 Transfer of balance from one account to another account.

 Record the amount of deposit and payment in the file.

 Posting in the computer the amount deposited and paid

C) Clearance Department (ECC)

Clearing is the process of depositing the mentioned cheque amount in customer bank account
through other commercial bank’s cheque in order to make the transaction process convenient
and deliver maximum customer satisfaction. In clearing department, bank deals with different
types of cheque of different banks, which are requested by a customer to clear. Clearances of
cheque are supervised by clearing house located at Thapathali. Clearing is done by all banks
except NRB. It is done for customer satisfaction to avoid travelling from one bank to another.
Taking care of the convenience and different need of customer, clearance department offers
two methods of clearing the cheque:
i. Regular Clearance

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 ii. Express Clearance

D) Pension Department
Pension department check the balance of pension account, provide information about pension
patta renewal, renew pension patta and pay pension amount to respective person. Generally,
pension is distributed from the twenty fifth day of every month. In order to know whether it is
necessary to renew pension patta or not, the internee should at first check the customer’s
account using Pumori.

1.5 Limitation of the Study

As we know that each and every research and the study have their own limitations, this study
also has some major limitations which are listed below:
 This study may not be applicable to other organization of similar nature.
 Two month of internship program was not enough for learning overall functioning of
each department
 The bank’s policy to keep some information confidential prevented from analyzing
overall activities.
 The internee was not the real employee of the organization so the internee has no right
to access in every information and department.

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 CHAPTER II
INTRODUCTION OF BANKING INDUSTRY

This section involves the brief introduction of the banking industry. It includes the
introduction of banking industry, meaning of bank, evolution of banking industry in Nepal,
meaning, development and functions of commercial banks in Nepal, present scenario of
banking industry on Nepal, opportunities and threats of banking industry in Nepal.

2.1 Introduction to Banking Sector and Bank

The banking sector is the section of the economy devoted to the holding of financial assets for
others, investing those financial assets as leverage to create more wealth, and the regulation of
those activities by government agencies. Bank is an organization offering financial services,
especially loans and the safekeeping of customers’ money until required and making loans at
interest. It is a financial institution that accepts deposits and channel the money into lending
activities.
A bank is an institution, which draws surplus money from public who are not using it and
lend to those who are intending to use it for productive purpose. Bank is also a type of
financial institution where financial services are broadly offered and wide ranges of financial
functions are performed.
(Horace) A bank is manufacturer of credit and machine so facilitating exchanges.
(C. R, Crowther).Nepal Rastra Bank 2002 defines bank is a financial institution which
provides financial services that may be in the form of accepting deposits, advancing loans,
providing necessary technical advices, dealing over foreign currencies, remitting funds, etc.
Thus, in general bank is an institution with following features:

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 a. It deals with money; accepts deposits and lend to people who need.

b. It deals with credit and has the ability to create credit.

c. It is commercial institution and aims at earning profit.

d. It is unique financial institution that creates demand deposit which serves as a medium
of exchange and as a result, the bank manages payment system of country.

2.2 History of Banking

The concept of banking dates back to 1800 BC in Babylon, where moneylenders provided
loans. In ancient Greece and Rome, banks offered loans, accepted deposits, and facilitated
currency exchange, but disappeared after the fall of the Roman Empire. Banking resurfaced in
the 12th and 13th centuries in Italy. The term "bank" originates from Latin, Italian, and
French words meaning "bench," referring to early moneylenders who conducted transactions
in marketplaces. Modern banking, with roots in merchants, goldsmiths, and moneylenders, is
now integral to the global economy, encompassing various specialized banks and leveraging
advanced technology.
2.3 Present Scenario of Nepalese Banking Sector
In the context of present situation there is tough competition for banking industry. The overall
competitions have been increased over the gap of time. As, we know the economy of Nepal is
very small but number of service provider high. Due to this reason many banking industries is
facing lots of problem. Some are in the position of insolvent and some are in the process of
merger. The political instability is creating lots of problem in their operation. Few banks are
making their presence in market by providing security and confidence to customer. Banking
industry is failing to achieve their respected target.
The NRB has classified the financial institutions into “A” “B” “C” “D” categories on the basis
of the minimum paid-up capital and provide the suitable license to the bank of financial
institution. Group “A” is for Commercial Bank. “B” is for Development Bank, “C” is for the
Financial Institutions and “D” is for the Micro Finance Development Banks
Table 2.2 Classifications of the Financial Institution
Classification Component Minimum Paid up capital Number

KA or A Commercial Banks( 8000 million 27

including foreign joint-

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 venture banks)
KHA or B Development Banks 2500 million 18
GA or C Finance Companies 800 million 20

GHA or D Micro Credit institutions 300 million 74

Others Institutions - 15

Infrastructure Development 2000 million 1

Bank
Source: www.nrb.org.np
2.4 Challenges and Opportunities
During my internship, I faced challenges like system breakdowns, staffing shortages, and
inefficiencies in queue management and filing systems, which impacted service delivery.
However, these challenges also presented opportunities to enhance operational efficiency,
improve teamwork, and develop problem-solving skills, offering valuable insights into the
banking industry.
2.4.1 Threats/Challenges of the Banking Industry

The main opportunities of the banking industry are highlighted below:

 Brand switching customers: These are consumers who actively seek alternatives to
their current brand choices, often influenced by factors such as price, quality, or new
product offerings, reflecting a dynamic market behavior.
 Explore the rural markets in Nepal : This involves investigating and penetrating the
less urbanized areas of Nepal to understand consumer behavior, infrastructure needs,
and economic potential, aiming to expand market reach and foster inclusive growth.
 Habit of saving and investments through modern technologies: This refers to the
adoption of digital platforms and fintech solutions by individuals to manage
savings and investments efficiently, leveraging convenience, accessibility, and
security in financial transactions.

2.4.2 Opportunities of the Banking Industry

The main challenges of the banking industry are highlighted below:

 Political instability
 New policies laid down by NRB

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  Brand switchers
 Attitude, perception and interest of customers
 Low public confidence
 Rivalry among existing competitors
2.4 Evolution of Banking Sector in Nepal
Nepal's banking sector has evolved from early informal practices of money lending by
goldsmiths and local lenders before 800 AD to the establishment of formal institutions. A key
development was the founding of Tejarath Adda in 1880, which provided loans against
collateral like gold and silver. The modern banking era began with the establishment of Nepal
Bank Limited in 1937, marking the start of structured banking in the country. The creation of
Nepal Rastra Bank in 1956 as the central bank was pivotal in regulating the sector, issuing
currency, and managing monetary policy.
The 1980s and 1990s were transformative, with liberalization policies allowing the entry of
foreign joint venture banks like Nepal Arab Bank and Nepal Indosuez Bank, introducing
international standards to the industry. The restoration of democracy in 1990 spurred further
growth, with increased private sector participation leading to the rise of commercial banks
such as Himalayan Bank and Everest Bank. This period saw improved services, broader
financial inclusion, and the expansion of the banking sector across Nepal, which continues to
play a crucial role in economic growth, trade, investment, and financial inclusion today.

11
 CHAPTER III
INTRODUCTION TO THE ORGANIZATION

3.1 Introduction of Rastriya Banijya Bank Limited

Rastriya Banijya Bank Limited is fully government owned, and the largest commercial bank
in Nepal. RBBL was established on January 23, 1966 (2022 Magh 10 BS). Under the RBBL
Act. Now the bank is running under bank and financial institute act 2063. RBBL has been
contributing to socio economic development of the country for the last five decades. RBBL
provides various services to a wide range of customers including both elite and poor.

RBBL has Nepal’s most extensive banking network with over 250 branches (including
Provincial Office). Through its widest branch and ABBS network RBBL has been catering
modern banking services to millions of customers. The bank has played a significant role for
the development of financial sector i.e. bank, insurance companies through its promoter role.

The Bank with 2600 hands has expanded its wings in the most part of the country through
multiple distribution outlets of 250 branches (including Provincial Office), 25 counters, 93
branch less banking, and 204 ATMs. The Bank with as many as 1.7 million satisfied direct
customers ranging from poor to elite ones and millions of indirect ones, has drawn important
imprint in the picture of country’s economy through its significant involvement in the best
use of its resources to enhance the production, income and employment opportunities.

3.2 Vision and Mission Statement

The core philosophy of the bank includes its vision mission and objectives. And they are
stated below:
3.2.1 Vision: “The most credible bank for one and all, always contributing towards Nation’s
prosperity."
3.2.2 Mission: “We strive to enhance the quality of life of all Nepalese by eliminating
barriers to financial access and helping them achieve their full potential; and by ensuring safe,

12
innovative and affordable financial services, through vast networks of efficient centers,
socially responsible business processes and empathetic human resource”
3.3 Goal/Objectives of RBBL
The goals and objectives of Rastriya Banijya Bank Limited (RBBL) generally revolve around
the following key areas:
 Financial Inclusion: RBBL aims to extend banking services to all segments of
society, especially in rural and underserved areas, to promote financial inclusion and
economic growth.
 Customer Service Excellence: The bank focuses on providing high-quality,
efficient, and customer-centric services to meet the diverse needs of its clients, including
individuals, businesses, and government entities.
 Sustainable Growth: RBBL is committed to achieving sustainable financial growth
by maintaining a healthy balance between profitability and social responsibility. This
includes expanding its market presence, optimizing operations, and investing in technology
and innovation.
 Support for National Development: As a government-owned bank, RBBL plays a
crucial role in supporting national economic development by financing key sectors such as
agriculture, industry, and infrastructure. The bank aims to contribute to the overall economic
stability and progress of Nepal.
 Risk Management: The bank prioritizes robust risk management practices to ensure
the stability and security of its operations, protecting the interests of its stakeholders,
including depositors, shareholders, and employees.
 Human Resource Development: RBBL focuses on developing a skilled and
motivated workforce through continuous training and development programs, aiming to
enhance the overall performance and service delivery of the bank.
 Corporate Social Responsibility (CSR): The bank is committed to its CSR
initiatives, focusing on social welfare, environmental sustainability, and contributing to the
well-being of the communities it serves.

3.3.3 Present situation of RBBL

The strategic objectives of the RBBL are as follows:
 Focus on providing innovative financial services: RBBL is committed to
developing and offering cutting-edge financial products and services that cater to the

13
 evolving needs of its customers. By leveraging technology and modern banking practices,
the bank aims to stay ahead of market trends and provide a seamless banking experience.
 Increase in capital base of the Bank by the minimum capital requirement: To
meet regulatory standards and strengthen its financial stability, RBBL focuses on expanding
its capital base. This not only ensures compliance with the minimum capital requirements
set by regulatory authorities but also enhances the bank's ability to support large-scale
projects and absorb potential losses.
 Business growth and increase in market share: RBBL aims to expand its market
presence by growing its customer base, increasing the volume of deposits and loans, and
entering new markets. The bank’s strategy includes enhancing its product offerings,
improving customer service, and adopting competitive pricing to attract and retain clients.
 Enhance operational efficiency: To remain competitive and improve profitability,
RBBL is focused on streamlining its operations. This involves optimizing processes,
reducing operational costs, and investing in technology to increase productivity and service
delivery efficiency.
 Sustainable increase in profit: RBBL's strategic focus on sustainable profit growth
involves balancing short-term gains with long-term financial health. The bank prioritizes
revenue growth through diversified income streams, prudent risk management, and efficient
cost control measures to ensure consistent profitability.
 Focus on empowerment of deprived class: As part of its commitment to social
responsibility, RBBL actively works towards empowering marginalized and underserved
communities. This includes offering targeted financial products, microfinance services, and
initiatives that promote economic inclusion and upliftment of the deprived class.

3.7 SWOT Analysis of RBBL

SWOT analysis is the acronym used for strength, weakness, opportunity, and threat. SWOT
analysis is used to analyze the internal and external environment of an organization. All the
external forces of the organization provide opportunities and threats and internal forces
provides the strength and weakness. With the help of SWOT analysis, internal strength can be
matched with the external opportunity to gain competitive advantage. Similarly internal
weakness can be reduced or overcome and external threat can be avoided. The aim of SWOT
analysis is to produce a good fit between resource capability and external opportunities. For

14
every organization to be stable SWOT analysis helps in incredible way for which every aspect
should be viewed.
Being a topmost organization of Nepal, this analysis is to be prioritized for which following
observation is made. Following are the strengths, weaknesses, opportunities, and threats of
RBBL:
3.5.1 Strengths of Rastriya Banijya Bank Limited (RBBL)
 Better Customer Service: RBBL is renowned for its commitment to providing high-
quality customer service, which enhances customer satisfaction and loyalty. The bank's
focus on understanding and addressing client needs contributes to a positive banking
experience.
 Brand Image: With a strong reputation built over years of service, RBBL enjoys a solid
brand image in the banking sector. This established trust and recognition support its
market presence and customer confidence.
 Wider Range of Market: RBBL's extensive network and diverse range of financial
products enable it to cater to a broad customer base, including individuals, businesses,
and government entities, enhancing its market reach and business opportunities.
 Valuable Human Assets: The bank benefits from a skilled and experienced workforce
that contributes to its operational efficiency and customer service excellence. These
human assets are crucial in driving the bank's growth and maintaining high performance
standards.

3.5.2 Weaknesses of RBBL

 Lack of Team Work: The bank faces challenges related to team collaboration and
cohesion, which can impact overall productivity and efficiency. Improving teamwork is
essential for enhancing operational effectiveness and achieving organizational goals.
 Obsolete Technology: RBBL struggles with outdated technology, which can hinder its
ability to offer modern banking services and remain competitive. Upgrading
technological infrastructure is necessary to meet current industry standards and customer
expectations.
 Lack of Innovative and Active Manpower: The bank faces issues with limited
innovation and proactive problem-solving among its staff. Encouraging a culture of
innovation and continuous improvement is vital for staying ahead in the competitive
banking landscape.

15
 Internal Operating Problems: RBBL experiences various internal operational issues
that affect its overall performance. Addressing these problems through process
optimization and efficient management practices is crucial for enhancing operational
efficiency.
 Lack of Public Confidence and Support: The bank struggles with gaining and
maintaining public trust and support. Building confidence through transparent practices,
improved customer service, and effective communication is essential for restoring and
enhancing its reputation.

3.5.3 Opportunities for RBBL

 Expansion of Number of Branches: There is significant potential for RBBL to expand
its branch network, which would enhance its reach and accessibility to customers in new
and underserved areas. This expansion can drive growth and increase market share.
 Alliances or Joint Ventures to Expand Coverage: Forming strategic alliances or joint
ventures with other financial institutions or businesses presents an opportunity for RBBL
to broaden its service offerings and extend its market coverage.
 Better Customer Service: Continuously improving customer service can create
opportunities for attracting new clients and retaining existing ones. Investing in customer
relationship management and service excellence can enhance the bank’s competitive
edge.

3.5.4 Threats to RBBL

 New Competitors: The entry of new competitors into the banking sector poses a threat to
RBBL's market share. To counter this threat, the bank must differentiate itself through
unique value propositions and superior service.
 Political Instability: Political instability in the region can impact the bank's operations
and overall economic environment. RBBL must develop strategies to mitigate risks
associated with political uncertainty and ensure business continuity.
 Brand Switching: The risk of customers switching to competing banks presents a
challenge for RBBL. Maintaining strong customer relationships, enhancing service
quality, and offering competitive products are essential to minimize this risk and retain
clients.

16
 Strengths Weaknesses
 Better customer service  Lack of team work

 Brand image  Obsolete technology

 Wider range of market  Lack of innovative and active

manpower
 Valuable human assets
 Internal operating problems

 Lack of public confidence and

support

Opportunities Threats
 Expansion of number of branches  New competitors

 Alliances or joint ventures to  Political instability

expand coverage
 Brand switching
 Better customer service

Figure 1.2 Swot analysis

17
 CHAPTER IV
JOB PROFILE AND ACTIVITIES PERFORMED
4.1 Overview
During my eight-week internship at Rastriya Banijya Bank Limited's Thimi branch, I worked
across Customer Service, Electronic Cheque Clearing, and Pension departments. I handled
tasks like account management, cheque processing, and pension disbursements, gaining
practical insights into the bank’s operations. I also observed challenges such as system
breakdowns, staffing issues, and queue management, highlighting the need for improved
teamwork, filing systems, and efficient grievance handling. This experience provided a
comprehensive understanding of banking processes and operational dynamics.
4.2 Activities Performed in the Organization
During eight weeks of internship period at Rastriya Banijya Bank Limited, Thimi branch, the
internee visited three departments. They are CSD, ECC & Remittance, and Pension. The
internee has participated in the real-life organizational setting outside the classrooms and the
internee has been provided with the opportunities to study the overall management and
business skills. With the keen support of bank staff, the bank internee was able to use
theoretical knowledge in actual field. In every department, way of dealing with the customer
was different. Customer care department involves more dealing with customer than other
department.
4.2.1 Customer Service Department
Customer service is the front desk and busiest place of any organization. It is the place where
customers make first contact with the bank. The initiation of banking services starts from
CSD where the deployed staff must have fair knowledge of banking so that they may be able
to answer any questions raised by the customers. Generally, we all think that the only function
of the customer service department is counseling the customers and fulfilling their queries.
But the scope of CSD is not only limited to the customer counseling and fulfilling their
queries.
In CSD the internee performed various activities which are discussed below:
a) Account Opening:

18
The internee was involved in opening accounts like saving account, and current account as per
the requirement of the customers. Filling account forms was also done by the internee. There
are 5 to 10 accounts opening per day in Thimi branch. The range may be increased as per
duration of schemes provided. The process of account opening can be shown as follows:
 Customer is provided with the application form to be filled up. The account opening
form includes KYC form, Signature Card.

 The customer must submit copy of the citizenship, electricity bill or telephone bill, and
four passport size photos with the application form.

 When the form is filled up by the customers, bank staff check the form and documents
and verify them and make the entry of the account holder in the system called Pumori.

 The customer is provided with the account number and asked to deposit the money as
per the type of account s/he has opened.
b) Account Closing:
As per the request and requirement of the customers the account can be closed. The major
reasons for closing accounts are death of account holder and account holder going abroad.
Procedures to close the account followed by RBBL are as follows:
 Customers are provided with the account closing application. While giving the
application, the customers are asked for the reason to close the accounts.

 When the form is filled up, the customers are asked to submit cheque book and ATM
card (If taken) with the application.

 Then finally, the account of the account holder is closed. Bank charges certain amount
as account closing charge.
c) Customer Query Handling and Counselling:
As a CSD staff during internship most of the internee time was spent in handling the
numerous queries of various walk-in customers. The internee gave the information that they
wanted. Many customers were interested to learn about the product which internee happily
obliged. In addition to that, the internee answers queries about bank’s other products, services,
transactions etc. The internee handled all the customer queries via phone as well.
d) KYC Form Update:

19
KYC is an acronym used for “Know Your Customers”. It involves making reasonable efforts
to determine true identify and beneficial ownership of accounts, source of funds, the nature of
customers’ business, reasonableness of operations in the account in relation to the customers’
business, etc. which in turn helps the banks to manage their risks prudently. KYC update is
the recent activity that is carried out in all the commercial bank as instructed by Nepal Rastra
Bank.
The internee was told to inform the customer visiting the bank to update their accounts
and those who doesn’t often visit bank were informed through telephone. The KYC
update process can be listed as follows:
 Customers are provided with the KYC form to be filled up.

 When the form is filled up, the internee checks the form and verifies it for the further
process if all the information is filled up correctly.

 The customers submit copy of citizenship, and two passport size photos with form

 Then, the internee updates the account of the customers using software called Pumori.
e) Providing Balance Statement to Customers:
Balance statement shows complete transaction of a customer of deposits, withdrawals and
closing balance. These are confidential information so; statements are only provided to the
account holder. Statement is given to the person who has been identified and authorizes by the
bank. To get the account statement, the customer needs to provide information about his/her
account name, account number, period and authorized signature or stamps of the organization.
Bank provides statement to those customers who have account in the same branch of that
bank.
f) Filing:
Filing is one of the most important jobs assigned the internee. All the files of forms related to
the customers have to be properly filled up and put in the respective file and has to be placed
in the specified drawer. The internee is asked to search for the particular file and has place it
back in same manner.
g) Issuance of MICR cheque book:
Today cheque works as closely as paper money. It can be taken from one place to another
easily. Most of the commercial banks, development banks, financial institutions and the co-
operative accept cheque of each other easily.

20
The cheque is issued to the customer after he/she opened the account in the bank as per
his/her request. If customers request for new cheque book for the second time, they should fill
the requisition form which is placed at the end of the checkbook. Before receiving the
checkbook, the account holder should sign in cheque register and requisition slip. Then
account holder’s signature is verified by staff of the bank or internee and when signature
matches s/he gets the new cheque book. In case if requisition slip is loosed, the account holder
should pay the extra charge of Rs 300 to get the new cheque book and the charge is debited
from the customer account.
h) Scanning:
The internee scanned the required document like signature card, ATM and Mobile Banking
form. Scan needs to be done carefully because it encompasses the pivotal information like
customer signature and nominees.
4.2.2 Electronic Cheque Clearing Department
ECC department is one of the crucial departments of any bank. ECC department mostly deals
with the cheque of other banks to be cleared and deposited in the respective accounts but
sometime, cheque of the same bank can also be cleared and deposited. The cheque clearing
process can be described as:
 At first, the customer is asked to fill the respective account name, number and the
amount in deposit voucher and submit cheque and voucher to staff of ECC department

 Then, the internee checks the deposit voucher and cheque whether the voucher is filled
correctly or not as per the cheque. If the deposit voucher and cheque are filled
correctly, the internee verifies it for further process.
 The internee scans the cheque and fills necessary information in software called ECC
and sends it to clearing house for clearance.

 The internee generates the clearance report sent by clearance house and checks for the
mistakes if any

 Then, the internee posts the clearance amount to the respective account and charges
some charge such as ECC charge and ABBS commissions etc.

21
4.2.3 Administration Pension Department
The internee was also involved in pension department to check balance of pension account,
provide information about pension patta renewal, renew pension patta and pay pension
amount to respective person. Generally, pension is distributed from the twenty fifth day of
every month. In order to know whether it is necessary to renew pension patta or not, the
internee should at first check the customer’s account using Pumori. The activities performed
by the internee in the pension department are
 The internee checked the balance of the pension account and provided information
related to pension patta renewal
 The internee helped customers to fill up the pension patta renewal form and checked
the form
 The internee renewed the pension patta at least for six months
 The internee posted pension in the customers’ account
 In case of Birendra Kalamkari Fund, the internee provided a slip to customers by
which they withdraw their money
 The internee helped the staff of pension to send messages to the customers whose
ATM and pin have been issued
 The internee provided ATM to the customers after the verification
4.2.4 Experience in Internship
Internship at Rastriya Banijya Bank Ltd., Thimi was really worthwhile and had a memorable
experience. It was great opportunity to gain wide knowledge about different operational
activities and procedure in practical ways. Without continuous support of staffs, it may not be
possible. So, intern experienced following things from internship:
• Working in government owned commercial bank, intern experienced the importance
of Nepali typing, Darta chaplain for maintaining the record.
• Experienced how operational activities of branches of commercial are conducted.
• Experienced how the product and services of banks plays an important role in the life
of people and in the country.
• Intern came to know about the workforce diversity on the basis of academic
background, gender, ethnic group, experience and the difficulty to work between the
diverse workforces.

22
• Working in a busy branch, intern experienced to handle bunch of work in a single
time.
• Experienced that in a group of customers, there are some people who have bad
intention and how to tackle with that type of customers.
Hence, intern got an opportunity to work in real life situations, experiencing the banking
practices of commercial bank, decision making process, organizational culture, division of
work, importance of team work and so on.

4.3 Problem Faced and its Solution

 System Breakdown
This is one of the common issue banks are facing so does RBBL, Thimi. There occurs
frequent breakdown in the system which results in slow delivery of services, resulted long
queue and dissatisfied employee.
Solution: information and technology department should be more concerned towards it. Old
computers should be replaced with new and highly efficient computers. For example: Slowing
down of the system at the peak hour of serving the customer in queue.

 Dissatisfied Personnel
It is major issue of bank which is resulted due to less no. of staffs in the branch. Single
employee should bear more burden of work especially in ECC and remittance department. It
creates dissatisfaction in employers and less performance of work.
Solution: Equal distribution of workload, appointing new staffs by opening vacancies,
quarterly choosing best employee based on performance.

 Queue Management

There is no proper queue management system. In ECC department customers directly enter
the room and disturb the employer to perform their work. They directly interact with staff for
balance inquiry, advice and for suggestions.
Solution: Proper renovate of department and inquiry desk should be maintained.

 Lack of Proper Filing

One of the major problems is the archive and filing system of the bank. At Thimi, intern
observed that there is lack proper filing and indexing system in ECC and CSD than another

23
department. At CSD old files are thrown at corner of room and at ECC there is no enough
space to index the file. Although there were helpers who were assigned filing work but they
don’t pay attention in filing documents in time, resulting work delay.
Solution: Unused documents should be filtered and free space for new documents. On other
hand if concerned department heads take filing the document seriously then this issue can be
solved.
 Resistance to change
Another major problem at bank is the lack of enthusiasm of employees. Employees
resists for the change and have low learning desires. Staffs from one department
denied working in another department. Especially, in ECC as work burden is more.
Solution: Proper training related to work must be given to accept change.
 Grievances handling
The complaints and grievances of customers are no instantly solved. The first place where the
customer complains is CSD which is fully assigned to the interns who have limited
information and authorities. Due to limited number of staffs and lack of authorized officers
the grievances handling is time consuming.
Solution: The branch should increase the number of employees, which will improve
grievance handling, quick operation and will result in satisfied customers.
 Conflict Among Personnel
Difference in personal beliefs, attitude and the culture of employees and dominating nature of
employee in same level created conflict among the staffs.
Solution: Job rotation should be done and conducting branch weekly if not monthly meeting
between the staff of every level help to make strong bond.

24
 CHAPTER V
CONCLUSION AND LESSON LEARNT
5.1 Conclusion
The internee's experience at Rastriya Banijya Bank Limited (RBBL) provided valuable
insights into the practical aspects of banking, highlighting the differences between
theoretical knowledge and real-world application. The internship enhanced the internee's
interpersonal skills, sense of responsibility, and understanding of corporate work culture.
The exposure to various departments, such as CSD, ECC, Pension, and Remittance,
allowed the internee to gain a comprehensive understanding of Nepal's financial system
and the practical operations of banking. The supportive environment and professionalism
at RBBL made the internship a memorable and enriching experience.
5.2 Lesson Learnt
As we know that practice makes man practical and perfect, the eight weeks internship
period in RBBL has taught the internee many lessons. Internee has learnt different skills
and obtained a variety of knowledge during internship period. The internee was able to
learn how the theories of the book are applied in the organization and the knowledge
beyond the books which could be gained only by working in a real organization. The
internee also learnt the professional attitude which will be useful in future. Apart from that
internee gained information about the products and services provided by the bank and the
culture of organization.
The internship has taught the internee many things which are listed below:
 Learned to socialize with professionals
 Learned to tackle operating problems
 Learned to deal with the parties
 Learned to use equipment like photocopy machines and printers
 Learned the working pattern and culture of organization
 The internee has broadened the interpersonal and communication skills
 The internee gained basic knowledge on operating software like Pumori
 Learned to develop positive attitude towards work as well as people at the work place
 Internee has learned how to maintain systematic record and filling of the document.
 Internee has learned how to open and close account of the bank and procedure of
account closing and opening.

31
5.3 Observed Gap between Theory and Practice
Reality differs a lot from the theoretical perspective, as learning in practical environment
and theoretically through the books has vast difference in the conceptuality. The real-life
situation deals with in the practical aspect prepares well for working in that environment,
quite easily, the theoretical concept may boost learning in a practical environment.
In different courses I had acquired only the theoretical knowledge but during internship
program I got a chance to gain practical knowledge and cope with the working
environment. The theoretical knowledge that had required is very useful in understanding
the practical situation and in reducing the difficulties which many students face during the
internship program. But many gaps between the theoretical aspects learnt and observed in
the company. Some of them are as follows:
 There is no particular theory that is developed regarding how to deal with the
customer. Every customer is different in their perception and attitudes.
 This report is not generalized to RBBL as whole since the data was related only to
Thimi Branch of the bank.
 No strict description of job and responsibilities i.e. one staff has to perform tasks as
per the requirement.
 There is no universal way of performing the responsibilities given to the staff. Each
and every bank has its own way of carrying out the same activities unless it is bounded by
external rules and regulations.
 Development of computerized systems in the bank creates and documented working
environment where theories are less practically applied.

32
 Since the entire activity of the bank is dependent upon the computer network, any
interruption or failure of network results in work delay and customer dissatisfaction.

Thus, these gaps are observed between the theory and practice. In theory we learn certain
principles and processes but in practice they differ based on different factors. There may
not be specialization in work in practical life because one has to perform task as per the
requirement of administration.

5.4 Feedback to Organization

 System Improvement Suggestions : Recommend upgrading computer systems and
IT infrastructure to reduce system breakdowns during peak hours. This would enhance
service delivery efficiency and minimize customer dissatisfaction.

 Staffing and Workload Management : Propose the establishment of a proper queue

management system in departments like ECC to streamline customer interactions and
reduce operational disruptions. Additionally, suggest a more balanced distribution of
workload among staff to prevent burnout and ensure consistent service quality.

 Enhanced Training Programs: Advocate for comprehensive training programs that

focus on customer handling techniques and effective grievance resolution. This would
empower interns and employees alike to better manage customer queries and complaints,
thereby improving overall customer satisfaction.

 Improvement in Filing and Document Management: Recommend implementing a

more structured filing and document management system across all departments,
particularly in ECC and CSD. This would help in quick retrieval of documents, reducing
delays in processing customer requests.

 Promotion of Interdepartmental Collaboration: Encourage regular cross-

departmental meetings or workshops to foster better collaboration and understanding
among staff from different departments. This would promote a cohesive work
environment and improve overall operational efficiency.

5.5 Feedback to the College/University

 Diversify Internship Timings: Advocate for diversifying the timing of internship
placements throughout the academic year. By staggering internships, more students can
access opportunities aligned with their academic schedule and career aspirations, reducing
competition during peak periods.

 Industry Alignment: Encourage the College/University to align internship placement

timing with industry cycles and demand. This strategic approach ensures that students
have access to internships when industries are actively recruiting, enhancing their chances
of securing meaningful placements.

 Enhance Preparation Support: Recommend enhancing preparatory support services

for students seeking internships. This includes workshops on resume building, interview
skills, and networking strategies tailored to different internship timing scenarios,
empowering students to effectively navigate the internship market.

 Flexibility in Internship Duration: Advocate for flexibility in internship duration

policies. Offering options for part-time internships, extended internship periods, or remote
work arrangements can accommodate varying academic schedules and personal
commitments, enhancing accessibility to internship opportunities.

 Feedback and Continuous Improvement: Propose establishing a feedback

mechanism where students can provide input on their internship placement experiences,
including challenges related to timing. Use this feedback to inform continuous
improvement efforts in internship coordination and support services, ensuring ongoing
enhancements based on student needs.
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Author London School of Economics.

Book, Single Shrestha, M.K (2008). Financial Markets & Institutions. Kathmandu:
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Book, Gautam R., Gurung R., Pokharel J., Kandel R., & Sigdel S. (2014).
Multiple Foundations of Financial Institutions and Markets. Kathmandu: Ayam
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Multiple Manandhar, K.D. & Pokharel, S.B. (2012). Marketing Financial
Authors Services. Kathmandu: Buddha Publication.

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Multiple Thapa, K, & Neupane, D.K. (2008). Banking & insurance.
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www.nrb.org.com/bsd/bsdindex.php?
vw=4www.rbb.com.np/
branches.phpwww.rbb.com.np/
visionMiss.phpwww.rbb.com.np/
ebanking.php
 APPENDICES
List of Commercial Bank in Nepal
S.No. Name Operation Date
(A.D.)
1 Nepal Bank Ltd. 1937-11-15
2 Agriculture Development Bank Ltd. 1968-01-21
3 Nabil Bank Ltd. 1984-07-12
4 Nepal Investment Mega Bank Ltd. 2023-01-11*
5 Standard Chartered Bank Nepal Ltd. 1987-02-28
6 Himalayan Bank Ltd. 1993-01-18
7 Nepal SBI Bank Ltd. 1993-07-07
8 Everest Bank Ltd. 1994-10-18
9 Kumari Bank Ltd. 2023-01-01*
10 Laxmi Bank Ltd. 2002-04-03
11 Citizens Bank International Ltd. 2007-04-20
12 Prime Commercial Bank Ltd. 2007-09-24
13 Sunrise Bank Ltd. 2007-10-12
14 Sanima Bank Ltd. 2012-02-15
15 Machhapuchhre Bank Ltd. 2012-07-09*
16 NIC Asia Bank Ltd. 2013-06-30*
17 Global IME Bank Ltd. 2023-01-09*
18 NMB Bank Ltd. 2019-09-28*
19 Prabhu Bank Ltd. 2016-02-12*
20 Siddhartha Bank Ltd. 2016-07-21*
21 Civil Bank Ltd. 2016-10-17*
22 Rastriya Banijya Bank Ltd. 2018-05-02*