Banks of Nepal according to classification A B C D with mission, vision, objectives, functions and power, duties. As licensed by Nepal Rastra Bank.

1. FINANCIAL
SUPPORT
AGENCIES
Prepared by: KRISHNATHAPA

2. Commercial Banks
Rural Development Bank
Cooperatives and Institutions
Micro Finance Institutions
Micro Enterprise Development Projects &
Programs.

3.  The Nepal Rastra Bank (NRB) was established in
Baisakh 14, 2013 B.S. (April 26, 1956 A.D.) As
a central bank of Nepal it supervises the banks
and financial institutions (licensed by the NRB) in
Nepal and guides monetary policy. Nepal Rastra
Bank was established in 2013 under the Nepal
Rastra Bank Act, 2012, 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.

4.  A Commercial bank is a type of Bank or 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
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
28Commercial Bank in Nepal.

5.  They do banking business to earn profit.

6. Vision & Mission
 Building communities through responsible
banking , preferred by all stakeholders enabling
customers and clients achieve their financial
goals thus contributing towards prosperous
Nepal.
 Helping clients and customers to achieve
financial security
 Utilizing the skill and potential of staffs
 Delivering banking products and services to
create delightful customer experience
 Being responsible for bringing positive
environment.

7. Objectives
o To offer wide variety of services to individuals
and business customers
o To collect payments including fees , charges
and interests on the products and services
provided to customers
o Help in monetary transactions as an agents of
NRB
o Acts as trustee, executor, attorney etc.

8. Function of Commercial Bank
(A Class)
 Primary Functions
Accepting deposits
Lending of funds
Help in foreign trade
Foreign exchange
Fixed deposit

9.  Secondary Functions
o Agency Services
Collection and payment of credit instrument
Purchase and sale of securities
Collection of dividends on shares
o General Utility Services
Locker Facility
Letter of Credit
Credit Cards
Accepting Bills of Exchange

10.  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 70 development
banks in Nepal.

11. Rural Development Banks
AN OVERVIEW OF DEVELOPMENT BANKS IN NEPAL
• The history of Nepalese banking industries begins with
an inception of Nepal Bank Limited(NBL) in 1937 AD,
established as a maiden formal banking institute that
marks the foundation of new era in the history of the
modern banking of Nepal. However, today, we stand
amidst much integrated yet diversified financial sector
where banks and financial institutions have prominent
presence and the banking sector are more liberalized,
modernized and systematically managed.

12. Concept
 Rural Development Bank is a micro finance
bank of national level.
 Its main aim is to alleviate poverty of rural
people by providing micro finance.
 Physical collateral is not needed for
disbursement of loan.
 It provides loan on guarantee approach.

13. Vision & Mission
 To uplift the socio-economic status of poor
people by providing micro finance.
 Its mission is to generate self-employment
in order to improve socio economic
environment .
Prepared by: KRISHNATHAPA

14. Objectives
 To provide quality banking services
 To encourage saving habit
 To mobilize available resources in rural area
 To uplift social and economic conditions of
rural women
 Providing credits for agriculture, industry and
service business

15. Function Duties and Powers
of development bank(Class B)
Subject to bank and Financial InstitutionAct and the memorandum of
association and articles of association Development Banks functions
duties and powers are as follows:
o Dealing in foreign exchange, subject to laws in force and the
directives given by the Rastra bank
o Providing overdraft to persons whom it trusts;
o To issue and accept letters of credit, subject to the conditions
prescribed by the Rastra bank;
o Purchasing , selling or accepting bonds issued by the Government of Nepal
or Rastra Bank;
o Arranging for safe deposit vaults and many more…

16. District and Zonal Presence of DBs
(As of 2015)
Source : NRB Report.

17. General Concept: A cooperative is an autonomous
and duly registered association of persons, with
a common bond of interest, who have voluntarily
joined together to achieve their social,
economic, and cultural needs and aspirations by
making equitable contributions to the capital
required, patronizing their products and services
and accepting a fair share of the risks and
benefits of the undertaking in accordance with
universally accepted cooperative principle.

18. Mission, vision & objectives
 To develop and protect long-term member
value
 To make a real difference to the communities
we serve
 Maintaining high integrity

19. Some finance companies..

20. “Self realization and self initiative are the
two most powerful weapons to wash
poverty out from the world” --CHANAKYA
• (World’s Greatest Ancient Economic and Political
Scholar).

21. Micro Finance Institutions
(D Class)
 Financial companies are licensed by Nepal Rastra Bank in
'ClassC'. Finance Companies in Nepal are playing vital roles
for the development of economy status of Nepal. Nepal
has many nationalized and private finance companies.
There are 79 finance companies licensed by NRB in Nepal.
 Microfinance Institutions (MFIs) are such organizations that
provide micro finance services.
 It is taken as an effective strategy for providing financial
services to those poor and disadvantaged groups who are
far from formal financial sector
 Microfinance has been recognized as an official poverty
alleviation tool in country
 Focus on women for micro-credit.

22. Mission, Vision & objectives
 Facilitating poor to financial serving
 To uplift socio-economic condition of rural
and urban
 To contribute to reduce poverty free
prosperous society
 To develop micro finance on the national
level
 Easy access to credit.

23. Functions & Duties of micro-
finance
 Supplying credit as prescribed
 Obtaining loans or grants from any licensed
institution or native or foreign organization
 Engaging in micro-enterprises of such type as
may improve the economic condition of low-
income person
 Providing necessary services to a group in
respect of the mobilization of micro-credit
 Writing off credits, subject to the by-laws
 Performing such other functions as may be
prescribed by Nepal Rastra Bank.

24.  Over eighty percent of Nepal’s population live in
rural areas. Inadequate income generating
opportunities in these areas have been a major
cause of widespread poverty and outflow of
productive workforce abroad. With aims to cater
the needs of socially excluded groups living
below the poverty lines by promoting off-farm
employment, the Government of Nepal (GoN)
and the UNDP started implementing Micro
Enterprise Development Program (MEDEP) in
1998.

25. Industrial Enterprise
Development Institute
 The Industrial Enterprise Development Institute (IEDI) is a
national resource organisation committed to
entrepreneurship development through training, research,
consultancy, and enterprise education. IEDI facilitates a
number of training courses that educate participants in
valuable business skills and best practice methods. IEDI
aims to improve the economic situation of Nepal by
providing enterprise education and support to potential
and existing entrepreneurs (who are micro, small and
medium sized business owners). IEDI offers its services and
training across Nepal.The IEDI central office is in
Tripureshwor, Kathmandu and the branch offices are in
Bharatpur, Pokhara, Nepalgunj, and Butwal.

27. Informal sector enterprise
development and employment
generation programme (ELAM)
 The Elam is a programme of HELVETAS
Swiss Inter Cooperation Nepal that mainly
focuses on Employment generation based on
the promotion of local resources value
chains and their value addition.

28. Prepared by:
KRISHNA THAPA
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