1663789117187Operations Manual 2022 Draft.pdf

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Operations Manual
Revised Version, September 2022

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Table of Contents
INTRODUCTION .........................................................................................................................................1
1.1. CUSTOMER SERVICE DEPARTMENT (CSD) ..................................................................................1
1.2. DEALING WITH CUSTOMERS...........................................................................................................1
1.2.1. ACCOUNT OPENING ........................................................................................................................2
1.2.2. DOCUMENTS REQUIRED FOR ACCOUNT OPENING ................................................................4
INDIVIDUAL ACCOUNT..................................................................................................................5
ACCOUNT OF PARTNERSHIP OR SOLE PROPRIETORSHIP FIRM........................................6
ACCOUNT OF COMPANY ...............................................................................................................7
ACCOUNT OF CLUB/ NON-GOVERNMENTAL ORGANIZATION............................................9
ACCOUNTS OF COOPERATIVES ..................................................................................................9
ACCOUNTS OF PUBLIC / PRIVATE GUTHI...............................................................................10
ACCOUNTS OF SCHOOL/ CAMPUS ............................................................................................11
ACCOUNTS OF INGOS...................................................................................................................12
ACCOUNT OF FOREIGNERS........................................................................................................13
ACCOUNTS OF FOREIGN COMPANIES.....................................................................................14
ACCOUNTS OF DIPLOMATIC AGENCIES/ EMBASSIES .........................................................14
ACCOUNT OF NON-RESIDENTIAL NEPALESE (NRN) ............................................................15
ACCOUNT OF LOCAL CONSUMER COMMITTEE (UPABHOKTA SAMITI) ........................15
1.2.3 ONLINE ACCOUNT OPENING .......................................................................................................18
1.2.4 ONLINE ACCOUNT OPENING THROUGH NAGARIK APPLICATION ....................................19
1.2.4 ONLINE KYC UPDATE ....................................................................................................................21
1.3. MAINTENANCE OF ACCOUNT OPENED.......................................................................................21
1.3.1. CHEQUE BOOKS .............................................................................................................................21
1.3.1.1. UNCOLLECTED CHEQUE BOOKS ............................................................................................23
1.3.1.2. ISSUING OF CROSS BRANCH CHEQUE BOOK.......................................................................24
1.3.1.2 PROCEDURES FOR ISSUING CHEQUE BOOK AGAINST LOST CHEQUE BOOK..............27
1.3.1.3 CHEQUE BOOK PRINTING IN RESTRICTED ACCOUNTS ....................................................27
1.3.2. LOOSE CHEQUES ...........................................................................................................................27
1.3.3. WITHDRAWAL SLIP.......................................................................................................................28
1.3.4. FUND TRANSFER FORM................................................................................................................29
1.3.5. STATEMENT OF ACCOUNTS........................................................................................................29
1.3.6. BALANCE CERTIFICATE ..............................................................................................................30
1.3.7. ADVANCE PAYMENT CERTIFICATE..........................................................................................31
1.3.8. INCENTIVE FOR EXPORT.............................................................................................................32

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1.3.9. FOREIGN DIRECT INVESTMENT CERTIFICATE.....................................................................34
1.3.10. CHANGE OF ADDRESS, CONTACT NUMBER AND NOMINEE OF ACCOUNT...................35
1.3.11. CHANGE OF SIGNATURE/ STAMP.............................................................................................36
1.3.12. STOP PAYMENT OF CHEQUES ..................................................................................................37
1.3.13. GOOD FOR PAYMENT (GFP) CHEQUES...................................................................................38
1.3.13.1. PROCEDURE TO MARK A CHEQUE AS “GOOD FOR PAYMENT”....................................38
1.3.13.2. CANCELLATION OF A GOOD FOR PAYMENT CHEQUE: ..................................................39
1.3.14. DORMANT ACCOUNT..................................................................................................................39
1.3.15. STANDING INSTRUCTIONS ........................................................................................................40
1.3.16. ACCOUNT OF DECEASED PERSONS.........................................................................................40
1.3.16.1. ACCOUNT WITH NOMINEE.....................................................................................................41
1.3.16.2. ACCOUNT WITHOUT NOMINEE.............................................................................................41
1.3.16.3. DELEGATION OF AUTHORITY TO BRANCHES FOR CLOSING ACCOUNTS OF
DECEASED ...................................................................................................................................42
1.3.17. ACCOUNT OF MINOR ..................................................................................................................42
1.3.18. ACCOUNTS OF ILLITERATE PERSON......................................................................................43
1.3.19 ACCOUNT OF BLIND/ VISUALLY IMPAIRED PERSON AND DIFFERENTLY ABLED
PERSON ........................................................................................................................................44
1.3.20. RECURRING DEPOSIT ACCOUNTS:..........................................................................................45
1.3.20.1. PREMATURE OF RECURRING DEPOSIT ACCOUNT...........................................................46
1.4. ACCOUNT CLOSING ........................................................................................................................46
1.4.1. CLOSING OF INDIVIDUAL ACCOUNTS: ....................................................................................47
1.4.2. CLOSING OF ACCOUNTS OF FIRM/COMPANY/INSTITUTION ETC.:...................................47
1.5. FIXED DEPOSIT (FD).........................................................................................................................48
1.5.1. ELIGIBILITY TO OPEN A FD ........................................................................................................48
1.5.2. PROCEDURE OF OPENING A FD .................................................................................................48
1.5.2.1. FIXED DEPOSIT IN FOREIGN CURRENCY .............................................................................50
1.5.3. RATE OF INTEREST ON FD AND MINIMUM DEPOSIT............................................................50
1.5.4. STOCK OF FDR................................................................................................................................51
1.5.5. PAYMENT OF FD.............................................................................................................................51
1.5.6. PRE-MATURITY OF FD..................................................................................................................52
1.5.7. STANDING INSTRUCTION FOR RENEWAL OF FD...................................................................53
1.5.8. INTEREST ON MATURED FD........................................................................................................53
1.5.9. ISSUE OF DUPLICATE FDR...........................................................................................................54
1.5.10. LOAN AGAINST FD.......................................................................................................................54
1.6. LOCKER ..............................................................................................................................................56

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1.6.1. INTRODUCTION..............................................................................................................................56
1.6.2. ALLOTMENT OF LOCKERS..........................................................................................................56
1.6.3. LOCKER VISIT OPERATIONS ......................................................................................................57
1.6.4. GENERAL NORMS: LOCKER OPERATIONS..............................................................................58
1.6.5 ITEMS FOUND UNATTENDED IN THE LOCKER ROOM ..........................................................58
1.6.6 LOSS OF THE LOCKER KEY..........................................................................................................59
1.6.7 NON-PAYMENT OF LOCKER RENT.............................................................................................59
1.6.8 BREAK-OPEN OF LOCKER UPON NON RECOVERY OF BANK CHARGES...........................59
1.6.9 SURRENDER OF LOCKER..............................................................................................................60
1.6.10 DEATH OF THE LOCKER HOLDER............................................................................................60
1.6.11 RISK GRADING & CUSTOMER DUE DILIGENCE FOR ALLOTMENT OF LOCKERS........61
1.7 BLACKLISTING ..................................................................................................................................61
1.7.1 CONDITIONS FOR BLACKLISTING: ............................................................................................62
1.7.2 RELEASING FROM BLACKLIST:..................................................................................................64
1.8. WAIVER IN FEES & COMMISSION / TRANSACTION REVERSAL & DELETION...................64
1.9. SAFE KEEPING OF BANK STAMPS ................................................................................................64
1.10. MISCELLANEOUS............................................................................................................................65
2. CASH DEPARTMENT ...........................................................................................................................66
2.1. MAINTENANCE OF CASH ................................................................................................................66
2.1.1. LIMIT OF CASH AT VAULT ..........................................................................................................66
2.1.2. PROCEDURE....................................................................................................................................67
2.1.3. NRB CLEAN NOTE POLICY 2073..................................................................................................68
2.1.4. CASH IN TRANSIT ..........................................................................................................................69
2.1.5. WITHDRAWAL FROM NEPAL RASTRA BANK/NOSTRO ........................................................71
2.1.6. VERIFICATION OF CASH AND SECURITY ITEMS...................................................................71
2.1.7. CASH SHORT/EXCESS ...................................................................................................................71
2.1.8. BAIT MONEY OR BAIT BILLS ......................................................................................................72
2.2. CASH RECEIPT AT COUNTER ........................................................................................................73
2.3. PAYMENT OF CASH..........................................................................................................................74
2.4. PROCEDURES FOR SALES OF FCY CASH ....................................................................................76
2.5. PROCEDURES FOR PURCHASE OF FCY CASH............................................................................76
2.6. RETURN OF UNPAID CHEQUES .....................................................................................................78
2.7. UNIDENTIFIED DEPOSITS ACCOUNT...........................................................................................78
2.8. END OF THE DAY (EOD) OPERATION...........................................................................................79
2.8.1. VAULT CASH MANAGEMENT REPORT (VCM REPORT)........................................................79

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2.9. CUSTODIAN OF VAULT KEY ..........................................................................................................79
2.9.1. SAFE KEEPING OF TRANSACTION LISTS AT BRANCH .........................................................80
2.10. AGREEMENT WITH BANKS & FINANCIAL INSTITUTIONS (BFI) REGARDING PAYMENT
OF CHEQUES AND ACCEPTANCE OF DEPOSIT OF CUSTOMERS.........................................81
2.10.1. INTRODUCTION............................................................................................................................81
2.10.2. PROCEDURE ..................................................................................................................................82
2.10.2.1. PAYMENT OF CHEQUES OF OTHER BANKS AND FINANCIAL INSTITUTIONS............82
2.10.2.2. DEPOSITS IN ACCOUNTS OF OTHER BANKS AND FINANCIAL INSTITUTIONS ..........82
2.10.2.3. PAYMENT OF OUR BANK’S CHEQUES BY OTHER BANKS AND FINANCIAL
INSTITUTIONS ............................................................................................................................82
2.10.2.4. DEPOSIT IN OUR BANK’S ACCOUNT BY OTHER BANKS AND FINANCIAL
INSTITUTIONS ............................................................................................................................83
2.10.2.5. ORIGINAL CHEQUES ................................................................................................................83
2.10.2.6. AUTHORIZED SIGNATORY .....................................................................................................83
2.10.3. TARGET ..........................................................................................................................................83
2.10.4. FEES & COMMISSIONS................................................................................................................83
2.10.5. SOFTWARE ....................................................................................................................................83
2.10.6. STRATEGIC ALLIANCE...............................................................................................................83
2.10.7. RISK MANAGEMENT ...................................................................................................................84
2.10.8. RESPONSIBILITY OF TREASURY FRONT OFFICE ................................................................84
2.10.9. RESPONSIBILITY OF DURBARMARG BRANCH .....................................................................84
2.10.10. ACCOUNTING ENTRIES ............................................................................................................84
2.11. 365 DAYS BANKING SERVICE .......................................................................................................86
2.11.1. SERVICES OFFERED IN 365 BANKING SERVICE ...................................................................86
2.11.2. STAFF MANAGEMENT.................................................................................................................86
2.11.3. OPERATIONS OF 365 BANKING SERVICE ...............................................................................87
2.12. EVENING COUNTER SERVICE......................................................................................................87
2.12.1. SERVICES OFFERED IN EVENING BANKING SERVICE .......................................................87
2.12.2. STAFF MANAGEMENT.................................................................................................................87
2.12.3. PROCEDURES OF EVENING BANKING SERVICE ..................................................................88
2.12.4. ACCOUNTING ENTRIES:.............................................................................................................88
2.13. SCHEDULE OF WORKING HOURS...............................................................................................89
3. REMITTANCE........................................................................................................................................90
3.1. INWARD REMITTANCE....................................................................................................................91
3.2. OUTWARD REMITTANCE................................................................................................................91
3.2.1 PROCEDURE OF OUTWARD REMITTANCE ..............................................................................91
3.3. ARRANGEMENTS REQUIRED FOR REMITTANCE.....................................................................93

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3.4. MODES OF REMITTANCE................................................................................................................94
3.4.1. BANK DRAFT/DEMAND DRAFT...................................................................................................94
3.4.1.1. PARTIES INVOLVED IN A DEMAND DRAFT...........................................................................94
3.4.1.2. PROCEDURE OF ISSUING DEMAND DRAFT ..........................................................................95
3.4.1.3. PAYMENT OF DRAFT..................................................................................................................96
3.4.1.4. ISSUANCE OF DUPLICATE DRAFT...........................................................................................96
3.4.1.5. CANCELLATION OF DRAFT......................................................................................................96
3.4.2. FAX TRANSFER/SWIFT TRANSFER ............................................................................................97
3.4.2.1. FAX TRANSFER............................................................................................................................97
3.4.2.2. SWIFT TRANSFER........................................................................................................................98
3.4.3. REFUNDING OF EDUCATION SERVICE TAX DUE TO VISA REJECTION............................98
3.5.3. MANAGERS CHEQUE (MC)...........................................................................................................99
3.5.3.1. PURPOSE OF ISSUING A MC.................................................................................................... 100
3.5.3.2. PROCEDURE FOR ISSUE OF MC............................................................................................. 100
3.5.3.3. PAYMENT OF MC....................................................................................................................... 101
3.5.3.4. STALE MANAGERS CHEQUE .................................................................................................. 102
3.5.3.5. CANCELLATION AND REVALIDATION OF MC................................................................... 102
3.5.3.6. LOSS OF MC................................................................................................................................ 103
3.6 MISCELLANEOUS ............................................................................................................................ 103
4. CLEARING ........................................................................................................................................... 104
4.1. ELECTRONIC CHEQUE CLEARING (ECC) ................................................................................. 104
4.1.1. OUTWARD CHEQUE CLEARING............................................................................................... 105
4.1.2. OUTWARD CLEARING FOR EXPRESS CHEQUE .................................................................... 107
4.1.3. OUTWARD CHEQUE RETURN PROCESSING.......................................................................... 107
4.1.4. NCHL ECC TRANSACTION CHARGES ..................................................................................... 108
4.1.4. MAINTAINING PHYSICAL CHEQUE......................................................................................... 108
4.1.5. INWARD CHEQUE CLEARING (ECC)........................................................................................ 109
4.2. CLEAN BILL COLLECTION........................................................................................................... 110
4.2.1. WORK FLOW OF CHEQUE COLLECTION............................................................................... 110
4.3.2. PROCEDURE TO BE FOLLOWED BY BRANCH....................................................................... 111
4.3.3. PROCEDURE TO BE FOLLOWED BY REMITTANCE DEPARTMENT ................................. 111
4.3.4. PROCEDURE TO BE FOLLOWED BY RECONCILIATION DEPARTMENT......................... 112
4.4. INTERBANK PAYMENT SYSTEM (IPS)........................................................................................ 112
4.4.1 INTRODUCTION: ........................................................................................................................... 112
4.4.2 TRANSACTION SUPPORTED BY IPS:......................................................................................... 114

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4.4.2.1. OUTWARD PAYMENTS: ........................................................................................................... 114
4.4.2.2. INWARD PAYMENTS: ............................................................................................................... 115
4.4.3 PRODUCTS/PURPOSE UNDER IPS:............................................................................................. 115
4.4.4 COMMISSION AND FEES: ............................................................................................................ 119
4.4.5 WORKING PROCEDURE/ MODULE: .......................................................................................... 120
4.4.5.1 PROCEDURE FOR OUTWARD PAYMENT.............................................................................. 121
4.4.5.2 PROCEDURE FOR INWARD PAYMENT.................................................................................. 123
4.5 CONNECTIPS..................................................................................................................................... 124
4.6 REAL TIME GROSS SETTLEMENT (RTGS).................................................................................. 125
4.6.1 PROCEDURES FOR RTGS: ........................................................................................................... 125
4.7 CORPORATEPAY.............................................................................................................................. 127
4.8 NATIONAL PAYMENT INTERFACE (NPI).................................................................................... 128
5. SUMMARY OF APPROVING AUTHORITY ..................................................................................... 130

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OPERATIONS MANUAL
Introduction
This document lays down the procedures of Operations Department. While preparing this
manual, focus has been made on the prevailing procedures, policies and guidelines,
Directives of Nepal Rastra Bank (NRB) and other statutory requirements. Therefore, this
document shall be periodically reviewed to incorporate any changes in the prevailing
procedures, policies and guidelines, NRB directives and any other statutory requirements.
The purpose of this Manual includes the following:
• Procedures of Operations Department.
• Roles and responsibilities of staffs working in Operations Department.
• Guidelines for effective functioning and to assist staffs in case of confusion regarding
any operational process and procedures.
Operations in bank chiefly includes following areas:
• Customer Service
• Customer Help Desk
• Account Opening
• Safe Deposit Lockers
• E-banking
• Mobile Banking
• Cash Transactions
• Remittance
• Clearing
• Manager‟s Cheque
• Good for Payment Cheque
• Holiday/ 365 days Counter
1.1. Customer Service Department (CSD)
Major functions of Customer Service Department (CSD) include dealing with customers,
Account opening, maintenance & closing procedures, and Safe Deposit Lockers.
1.2. Dealing with Customers
CSD is the area where any prospective customer first comes in contact with the bank. The
staffs deployed in the CSD should have a fair knowledge of Banking and our bank products so
that they may be able to answer questions which may be raised by the customer. Staff at CSD
should pay proper and personal attention to the customers. A person coming to the bank for
any purpose must be dealt promptly and with courtesy. Staff at CSD/Front Office must greet
with a “Namaste” with closed hands and “Smile” to each and every customer coming to the
department for inquiry or taking any kind of advice or services. As CSD is considered to be
face of bank, staff working in CSD should be polite, courteous and respectful to the customers,
which add value to our brand.

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1.2.1. Account Opening
Procedures
• Complete sets of forms should be readily available at CSD. Account Opening Form
(AOF) (Specimen 1), KYC Form (Specimen 60 and 61) and Specimen Signature (SS)
Cards (Specimen 2) used for both Individual and Firm/Company applicant should be
pinned together and enough stock of these documents should be kept in CSD.
• Specimen Signature Card is included in the Account Opening Form. Hence, separate
Specimen Signature card is not required to be obtained unless number of signatures
exceeds the space available in the SS Card included in the AOF.
• The customer/authorized signatory/ies should personally visit the branch to open an
account. However, in case of differently abled person, old aged or a highly reputed
person who cannot come personally to the bank, the DRO can be deputed to collect the
forms by obtaining signature and thumb impression in his/her presence. Further, in case
of highly reputed person, if the Branch Manager /Assistant Branch Manager/Operations
In-charge/ Head of CSD is personally satisfied about the genuineness of the contents of
the Account Opening Form, KYC Form and signature and thumb impression of the
customer affixed therein, the customer may authorize a person to visit the branch to
open account on his/her behalf.
• The applicant should be counseled by CSD staff by inquiring about his/her purpose of
deposit and preference, and describing about available deposit products and their
features that suits his/her/their need.
• Account Opening Form should be completed by the customer himself or by his
designate. He/she may, however, be guided by the bank staff to complete the form with
utmost courtesy. The CSD staff must ensure that all the required fields of AOF and
KYC forms have been filled up by the customer and required documents have been
submitted. If there is any correction made, signature of customer is to be obtained on
the corrected parts.
• The customer should be properly inquired about whether he/she wishes to nominate a
person as nominee of the account. If he/she likes to name a person as nominee,
nominee details field should be completely filled up and signed (full signature) by the
account holder. Similarly, a copy citizenship certificate of the Nominee should be
invariably obtained.
• If the customer does not like to mention any nominee, the nominee details fields
should not be left blank, but crossed marked. If the customer wishes to mention
nominee of the account later, a separate request letter can be obtained mentioning the
details of the nominee similar to that of AOF along with a copy of citizenship
certificate of the nominee.
• Location of address should be drawn by the customer in the KYC form. Similarly,
name of nearest landmark such as road junction, temple, school, hospital etc. should
also be mentioned and distance of the residence/office from that landmark is also to be
mentioned. The CSD staff should check if the map has been drawn in a traceable
manner.

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• Full name along with father‟s name/husband‟s name, grand father‟s name, details of
occupation, office, permanent and current addresses, telephone numbers and other
required details as per NRB should be mentioned in the KYC form.
• The Introducer details and signature should also be compulsorily obtained in AOF.
When a customer submits the Account Opening form duly introduced, the introducer's
signature therein should be verified by the CSD. However, BM/Assistant Branch
Manager/ Operations In-charge or CSD staff can also sign as the introducer of the
customer after properly verifying the submitted documents and genuineness of the
customer.
• The Specimen Signature Card should be signed by the customer/authorized signatory in
the presence of the staff of Customer Service Department.
• Instructions regarding operation or any special instructions of the customer in the
Account Opening Form should be clearly mentioned. The operational instructions
should also be noted clearly on Specimen Signature Card.
• Thumb Print of the customer should be taken in the KYC Form. For the convenience to
scan image in the system, thumb impression can additionally be obtained in Specimen
Signature field as well.
• Name of customer willing to open account must be checked in the sanctioned list of
Trust AML software. If applicant is a firm, all authorized signatories or joint venture
partners should also be checked in the sanctioned list. The generated Screening ID
should be inserted in Screening ID field under MIS Tab while opening account. If the
customer is found in the sanctioned list, the account should not be opened.
• If the customer falls under the High-Risk category, then additional documents as per
our AML and CFT Policy/Procedures must be obtained from customer and account
should only be opened after taking approval from COO or Head – Central Operations
in case of leave of COO (as per specimen 58).
• Similarly, the customer should also be cross checked in blacklisting database through
integrated blacklist checking module in MIS by entering details in all fields as far as
possible. If the name of the applicant and personal details such as name of father,
grandfather, citizenship certificate number etc. match with the blacklisted database, the
account should not be opened.
• After confirming that all the required information and documents for account opening
have been obtained, the CSD should proceed for opening the account. After opened the
account, signature of CSD staff, Operation In-charge/Head CSD and Branch Manager
are to be obtained in Bank‟s Use section of the AOF and KYC documents.
• In case of individual accounts, the branch should fill up data in DMS of Account
Opening module, upload supporting documents and submit the form so that the account
can be opened by Central Account Processing Unit at Head Office. Branch should
ensure all the required data have been filled and clear copy of required documents have
been uploaded in DMS so that chances of the AOF getting rejected is minimized.
• In case of accounts that have not been integrated in Centralized Account Processing
and are being opened by branches, the approval/verification of account opening must
be done by Operation In-charge or by Head CSD in branches having such facility.

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• Record of all the accounts opened during a day has to be updated in the Account
Opening Register (Specimen 4) within the same date. Report can also be generated
through MIS for record keeping as per the requirement of the branch.
• After account has been opened, specimen signature of the customer/authorized
signature/ies of the SS Card should be scanned and the image of Specimen Signature
and photographs/stamps is to be uploaded in the CBS by the evening of the same day.
Cheque book should not be issued and debit transaction should not be allowed in the
account without uploading image in the system.
• Account opening report (Specimen: 6) should be prepared at the end of the day (as
per mentioned format in specimen) and should be approved with initials of Branch
Manager along with Operations In-charge/ CSD In-charge/Staff daily. Alternatively,
MIS report: “Account Opening Datewise” can also be generated and initials of the
account opening and verifying staffs should be obtained before filing.
• 2 copies of passport size of photograph is to be obtained from the customer. Digital
Photo can also be accepted by the bank. One copy of photograph is to be attached with
the Specimen Signature (SS) card, while another is to be attached with KYC.
• In case the customer gives account operating mandate to any other person, 2 copies of
photographs, KYC and identification documents (Citizenship, Passport) of the
Mandatee shall also be obtained. Mandate Form (Specimen 5) shall be obtained for this
purpose. Thumb impression of the Mandatee should be obtained in KYC form.
Additionally, thumb impression can also be obtained in in Specimen Signature Card
for the convenience of scanning image. In the operating instruction of image, it
should be mentioned as “Mandate has been given Mr./Ms….” and on the image of the
mandatee, “Mandatee” should be mentioned in brackets next to his/her name.
• As a supplementary document, Voter‟s identity card can be downloaded from Election
Commission Nepal website and kept in account opening form. If the customer is
willing to provide bills of utility payment, it can also be accepted.
• A single page Account Opening Form cum simplified KYC form is to be obtained for
Saral Bachat Khata or any other account type/scheme as directed by Government of
Nepal / NRB Directives. Simplified KYC form can also be used to open accounts if the
expected turnover in the account is up to or below Rs.100,000/-. Simplified KYC form
can also be obtained in case of social security payment accounts under G2P scheme.
• Account Opening Form, KYC form and Specimen Signature (SS) Card and supporting
documents of account opening are permanent records and these documents could be
easily retrieved in case of need. Hence, they are to be kept in Index files in serial wise
manner according to the scheme of account and stored properly in lockable filing
cabinets.
1.2.2. Documents Required For Account Opening
While opening an account, depending upon whether the customer is an individual or firm,
company, association, NGO etc., following information and documents in accordance with
the nature of the customer must be obtained which is in accordance with the KYC Policy of
NRB.

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The branch is to ensure that the copies of all the mentioned documents are clear and
readable. The branch should not accept documents which have faint print or are unclear.
Customer‟s signature (authorized signature and stamp in case of firm) is to be obtained on
the back side of each copy of document mentioning it of being true copy of the original.
Further, all the copies are to be verified with the original documents and Verified with
Original stamp and signature of verifying staff are to be affixed.
Individual Account
• Copy of Citizenship Certificate, Passport or National Identity Card
• 2 PP size Photographs
• Additional Documents such as Employee ID Card in case of Rastra Sewak Bachat Khata,
Student ID Card in case of Biddhyarthi Bachat Khata, Passport, VISA or Residence
Proof Document in case of Matribhumi Bachat Khata, letter of the employer in case of
Talab Bachat Khata etc.
• If the customer does not have telephone number, mobile number or email ID, a self-
declaration is to be obtained mentioning that he/she does not having a personal contact
number.
• In case of an Indian national, passport or registration certificate issued by Embassy of
India can be accepted. The expiry dates of both passport of registration certificate
should be recorded in the Finacle system similar to recording of expiry date of VISA
of foreign account holders so that account can be total frozen from the expiry date.
• In case of refugee, Refugee Card issued by Nepal Government or UNHCR can be
obtained instead of Citizenship Certificate.
• In case of minor, Birth Certificate of minor, Citizenship Certificate or Passport of
Guardian and 2 PP size photographs each of both are required. If the minor has crossed
16 years of age and has also obtained Citizenship Certificate, it can also be accepted
instead of Birth Certificate. Separate KYC form of both minor and guardian is to be
obtained.
• In case the applicant or authorized signatory falls under high risk category as per AML –
CFT Policy/Procedures or NRB Directives, Citizenship Certificate/Passport/Birth
Certificate of nearest family members (Ekaghar Pariwar) is also to be obtained.
• If the applicant is a major, but has not obtained a citizenship certificate, account can be
opened based on recommendation letter with attached photograph of the applicant
obtained from Rural Municipality/Municipality/Sub-Metropolitan/Metropolitan office.
However, prior approval from Central Operations Department is to be obtained. Only
account under Saral Bachat Khata scheme with Simplified KYC can be opened under
this provision, in which the annual turnover in the account should not exceed
Rs.100,000/-.

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Account of Partnership or Sole Proprietorship Firm
• Registration Certificate (Registration No., Registering Office, Registered Date)
• Permanent Account Number (PAN)/VAT Registration Certificate
• Registered Address of the Firm (District, Municipality / VDC, Ward No., Tole /
Village, House No., Telephone No., Fax No.)
• New address of firm in case registered address has changed
• Nature of Business
• Working Area
• No. of branches and location of main branches
• Estimated Annual Turnover of business
• Citizenship Certificate and Personal Details of Proprietor, Partners and Account
Operators (Position, Name, Surname, Name of Husband / Wife, Father, Grandfather,
Permanent Address, Present Address, Telephone No., Mobile No., E-mail address)
• Photocopy of Citizenship Certificate / Passport and PP size photo of Proprietor,
Partners and Account Operators
• KYC of the firm (corporate KYC form) and its proprietor (individual KYC form) are
to be obtained. In case of Partnership Firm, KYC of all partners is to be obtained.
• Audited Financials of the last fiscal year. For firms not requiring their financials to be
audited, provisional financials prepared by the firm can be obtained. In such case, a
declaration of the firm is also to be obtained mentioning non requirement of audit as
per tax policy. Similarly, for a newly established firm, a self-declaration is to be
obtained mentioning that they would submit the audited financials within 3 months
after the starting of next fiscal year. After the completion of the fiscal year, branch
needs to do continuous follow-up with the Proprietor/authorized partner of the firm to
ensure timely submission of audited financials.
• Tax Clearance certificate or statement of tax submission of last fiscal year. For a
newly established firm, a self-declaration is to be obtained mentioning that they would
submit the tax clearance certificate/statement of tax submission within 3 months after
starting of new fiscal year. After the completion of the fiscal year, branch needs to do
continuous follow-up with the Proprietor/authorized partner of the firm to ensure
timely submission of tax clearance certificate/statement of tax submission.
• Renewed registration certificate, audited financials, tax clearance certificate etc. are to
be updated in the accounts of the firms at the time of CDD/ECDD depending upon the
risk grade of the firm.
• Partnership Agreement / Deed in case of Partnership Firm.

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• Minute giving mandate to authorized signatories for financial and administrative
works in case of Partnership Firm
Account of Company
• Registered Address of the Firm (District, Municipality / VDC, Ward No., Tole /
Village, House No., Telephone No., Fax No., E-mail Address, Web Address)
• Permanent Account Number (PAN)/ VAT Registration Certificate
• Certificate of Incorporation, Memorandum of Association and Articles of Association
of the Company.
• Latest Share Holding Document (Share Lagat) certified by Company Registrar Office
• New address of company in case registered address has changed
• Registration Certificate (Registration No., Registering Office, Registered Date) in M/s
Company Registrar Office.
• Working Area
• Estimated Annual Turnover
• Details of Directors, Chief Executive and Account Operators (Position, Name,
Surname, Name of Husband / Wife, Father, Grandfather, Permanent Address, Present
Address, Telephone No., Mobile No., E-mail address)
• Photocopy of Citizenship Certificate / Passport and 2 PP size photographs of all
Directors, Chief Executive and Account Operators.
• Citizenship Certificate and Personal details of Shareholders holding 10% or more
shares (Name, Surname, Name of Husband/Wife, Father, Grandfather, Permanent
Address, Present Address, Telephone No., Mobile No., Email ID.
• If the shareholder holding 10% or more shares is a legal entity (firm/company),
personal details (Name, Surname, Name of Husband/Wife, Father, Grandfather,
Permanent Address, Present Address, Telephone No., Mobile No., Email ID) of
Shareholders of that legal entity holding 10% or more shares. Shareholders holding 10%
or above shares of a company are considered as beneficial owners. Registration
Certificate, PAN Card, MOA, AOA, Share Lagat, tax clearance document and other
details of the company are also to be obtained.
• KYC form of Company, its Directors, beneficial owners (shareholders holding 10% or
more ownership), CEO and authorized signatory/ies to be obtained. CIF ID of all these

8
parties is to be created in Finacle CBS. Whereas, CIF IDs of Directors, CEO and
authorized signatories are to be linked with the corporate account in Related Party
Details at Account level, CIF IDs of beneficial owners are to be linked in Relationship
Details at CIF ID of the company.
• Audited Financials of last fiscal year. If it is a newly established company, a self-
declaration is to be obtained mentioning that they would submit the audited financials
within 3 months after starting of next fiscal year. After the completion of the fiscal
year, branch needs to do continuous follow-up with the authorized person/s of the
company to ensure timely submission of audited financials.
• Tax Clearance certificate or statement of tax submission of last Fiscal Year. For a
newly established company, a self-declaration is to be obtained mentioning that they
would submit the tax clearance certificate/statement of tax submission within 3 months
after the starting of new fiscal year. After the completion of the fiscal year, branch
needs to do continuous follow-up with the authorized person/s of the company to
ensure timely submission of tax clearance certificate/statement of tax submission.
• Audited financials, tax clearance certificate, Share Lagat (Shareholding Certificate) etc.
are to be updated in the accounts of the firms at the time of CDD/ECDD depending
upon the risk grade of the account.
• If the company is a subsidiary of a Foreign Company, name and address of the Foreign
Company
• Board Minute for the opening of account, account operating instruction and names and
designation of signatories authorized to operate account.
• Mandate / Power of Attorney given to Chief Executive or Other Officers by the Board
for doing Financial Transactions.
• In case of Joint Venture Firm/Company, Registration Certificate, PAN card,
Memorandum of Association, Articles of Association, Share Lagat, Tax Clearance
Certificate of last Fiscal Year, personal details holding more than 10% or more shares
etc. should be obtained of all individual firms. If another firm/company is holding 10%
or more shares in any of the individual companies then all the documents mentioned
above of that company is to be issued. Similarly, PAN certificate in joint name of JV
partners and minute of the JV partners to open account and for nominating account
operators are to be obtained. Likewise, KYC of authorized signatories and Corporate
KYC of individual firms and JV firm are to be obtained. Screening of all individual
firms and JV firm is to be done separately.
If one of the joint venture partners is a foreign country, permission letter from
concerned government authority for working in Nepal is also to be obtained.

9
Account of Club/ Non-Governmental Organization
obtained from M/s District Administration Office. Registration at M/s Social Welfare
Council also in case of NGO.
• Permanent Account Number (PAN) Certificate.
• Registered Address (District, Municipality / VDC, Ward No., Tole / Village, House
No., Telephone No., Fax No., E-mail Address, Web Address)
• New address in case registered address has changed
• Work Area
• Citizenship Certificate and Personal Details of Executive Committee Members,
Director, Trustee, Controller, Settler and Custodian (Position, Name, Surname,
Permanent Address, Present Address, Telephone No., Mobile No., e-mail address and
Employed Organization Name, Address and Contact Number)
• KYC of Chief Executive and Account Operators
• Photocopy of Citizenship Certificate / Passport and PP size photo of Chief Executive
and Account Operators
• Audited Financials of last fiscal year
• Constitution / By-Laws (Bidhan)
• In case of tax exempt organization, Tax Exempt Certificate issued by Inland Revenue
Office is to be obtained. The Tax Exempt Certificate is to be renewed every year and
its copy is to be updated in bank records. Please note that unless explicitly mentioned
in the Tax Exempt Certificate about waiver of tax also on interest income, TDS on
interest is applicable.
• Minute of Executive Committee for opening the account, account operation and
authorization provided to signatories for doing financial transactions.
Accounts of Cooperatives
• Registration Certificate (Registration No., Registering Office, Registered Date) at M/s
Company Registrar Office and M/s Department of Cooperatives.
• Permanent Account Number (PAN)

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• New address in case of change in registered address
• Work Area
• Citizenship Certificates and Personal Details of Directors (Position, Name, Surname,
Name of Husband/Wife, Father, Grandfather, Permanent Address, Present Address,
Telephone No., Mobile No., e-mail address)
• KYC of Directors, Chief Executive and Account Operators
• Photocopy of Citizenship Certificate / Passport and PP size photo of Directors, Chief
Executive and Account Operators
• Audited Financials of last Fiscal Year
• Tax Clearance certificate or tax submission details of Previous Fiscal Year.
• Constitution / By-Laws
• Board decision for the opening of account and its operation and authorization provided
to signatories to do Financial Transactions.
Accounts of Public / Private Guthi
• Permanent Account Number (PAN)
• Changed address in case of change in registered address
• Work Area

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• Citizenship Certificates and Personal Details of Directors / Management Committee
Members, Chief Executive and Account Operators (Position, Name, Surname, Name
of Husband / Wife, Father, Grandfather, Permanent Address, Present Address,
Telephone No., Mobile No., e-mail address)
• Photocopy of Citizenship Certificate / Passport and PP size photo of Directors or
Management Committee Members, Chief Executive and Account Operators
• Agreement / Consent Deed regarding establishment of Guthi
• Board / Management Committee decision for the opening of account and its operation
and authorization provided to signatories for doing Financial Transactions.
• Tax submission statement of last Fiscal Year.
• In case of tax exempt organization, Tax Exempt Certificate issued by Inland Revenue
Office is to be obtained. The Tax Exempt Certificate is to be renewed every year and
its copy is to be updated in bank records. Please note that unless explicitly mentioned
in the Tax Exempt Certificate about waiver of tax on interest income, TDS on interest
paid to the account is to be deducted.
Accounts of School/ Campus
• Registration Certificate (Registration No., Registering Office, Registered Date)Name
of School or Campus. Request letter of School/College or recommendation letter of
Local Government if it is a Government School.
• Permanent Account Number (PAN) Certificate (for private school/college only).
• License obtained from Ministry of Education/concerned board for running
school/college according to level of education.
• Changed address in case there is change in registered address
• Work Area
• No. of branches and location of corporate office and main branches

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• Citizenship Certificates and Personal Details of Directors/Management Committee
Members (Position, Full Name, Name of Husband/Wife, Father and Grandfather,
Permanent Address, Present Address, Telephone No., Mobile No., Email address)
• Photocopy of Citizenship Certificate / Passport and PP size photo of Chief Executive
Officer/Managing Director and Account Operators
• KYC of Chief Executive Officer/Managing Director and Account Operations
• Tax Clearance Certificate or tax submission statement of Last Fiscal Year
• Certified Copy of License for Registration of the Firm (Permission Letter for
Operating School/College)
• Memorandum of Association and Articles of Association
• Minute of Board / Management Committee for opening of account and authority
delegated for doing Financial Transactions.
Accounts of INGOs
• Permanent Account Number (PAN) Certificate
• Changed address in case of change in registered address
• Work Area
• No. of branches/offices and location of main branches/offices
• Citizenship Certificate/Passport and Personal Details of Directors, Chief Executive
and Nepal Representative or Chief (Position, Name, Surname, Name of Husband /
Wife, Father, Grandfather, Permanent Address, Present Address, Telephone No.,
Mobile No., e-mail address)
• Photocopy of Citizenship Certificate / Passport and PP size photograph of Chief
Executive or Nepal Representative or Chief and Account Operators.

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• KYC of Chief Executive Officer, Country Representative or Chief and Account
Operators.
• Agreement executed between Social Welfare Council and INGO, if any
• Recommendation Letter from concerned Country or its Embassy in Nepal in case of
INGOs not registered or obtained affiliation from authorized body in Nepal.
• Tax Submission Statement of Last Fiscal Year in case of taxable entity.
• If the organization is a local committee or club of an international club, decision of its
central committee for incorporation of the local committee and decision to operate
account.
• Request letter and minute for opening of account and its operation and Power of
Attorney given to Account Operators for Financial Transactions.
Account of Foreigners
• Full Name, Surname
• Address in Foreign Country (Permanent and Temporary)
• Address in Nepal
• Name of Spouse, Father, Grandfather and other family members
• Passport / Visa:
Passport No: ………………… Issuing Country ……........... Issue Date………,
Expiry Date ……… Visa Expiry Date ……………………...
• Copy of valid Visa (Not Expired)
• Copy of Passport
• If the person is employed, name of organization, address, contact number and
Recommendation Letter of the Employer.
• Foreigners, except for Indians, can only open account in USD or other permissible
FCY according to the currency of their residing country. Foreigners cannot open any
type of account in NPR currency.
• The expiry date of the validity of VISA of the foreigner should be marked in Finacle
CBS so that the account becomes debit frozen if the VISA of the account holder
expires.

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Accounts of Foreign Companies
• Name of Company
• Address and contact details of Foreign Company‟s Head Office and Main Office
situated in Foreign Country
• Address and contact details of Foreign Company in Nepal
• Nature of Business of Office situated in Nepal (Branch, Contact, Project or others)
• Registration Certificate in Foreign Country (Registration No., Registering Office,
Registered Date)
• If registered in Nepal, details and documents of the registration and PAN
• Work Area
• No. of branches/offices and location of main branches/offices
• Memorandum of Association and Articles of Association
• Foreign Company‟s decision for the opening of account and its operation and Power
of Attorney for Financial Transactions
• Details of Foreign Company‟s Directors and Chief Executive Officer (Position, Name,
Surname, Address, Telephone No., Mobile No., e-mail address)
• KYC, Citizenship Certificate/Passport, PP size photo of Two Chief Executives, Nepal
Representative and Account Operators.
• Audited Financials of last Fiscal Year. Provisional Financial Reports in case of newly
registered firm/company.
• Tax clearance certificate or tax submission statement of last Fiscal Year.
Accounts of Diplomatic Agencies/ Embassies
• Letter of Embassy/Mission
• Mandate for account operation
• KYC, Photo, Passport, address verifying documents of Account Operators
• Any additional documents if deemed necessary.

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Account of Non-Residential Nepalese (NRN)
• Full Name and Address in Nepal
• Permanent and Current Address and contact details in Foreign Country
• Name of Father, Mother, Grandfather, Spouse and Other Family Members
• Documents evidencing Income Source
• Copy of NRN Identity Card issued by Nepal Government
• Copy of Registration at M/s Non Resident Nepali Association (NRNA)
• Photocopy of valid Passport
• 2 PP size Photographs
Account of Local Consumer Committee (Upabhokta Samiti)
• Minute of Upabhokta Samiti for its constitution.
• Minute of Upabhokta Samiti for opening account and authorized signatory/ies to
operate account.
• Recommendation Letter of Local Government Body to the bank for opening account
of Upabhokta Samiti with details of Authorized Signatory/ies to operate account.
• Type of Business of Upabhokta Samiti
• Expected Annual Turnover in number and amount.
• Copy of Citizenship Certificate or Passport, 2 PP size photographs and personal
details of Account Operators (Authorized Signatories) of account
• In case Upabhokta Samiti is registered in any government body, copy of its
Registration Certificate.
• KYC document of Upabhokta Samiti and all authorized signatories
• Declaration letter of Upabhokta Samiti that the transaction in the account will be done
only for the purpose of meeting their business objectives.
Notes:
• Interview of customer might also be conducted by the Branch Manager/ABM/OI, if
felt needed.

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• In case of customers, who do not have details of House No., Telephone No., Mobile
No., E-mail address, Passport, Occupation/Business, PAN etc., the same will not be
mandatory. However, customer must provide declaration in writing that such details
are not available with him/her.
• Photocopy of citizenship of all family members (unseparated members of family)
must be obtained of those customers falling under high risk category as per AML-
CFT Policy/Procedures or whose Enhanced CDD has to be conducted. In case of
minors, birth certificate or identification card is to be obtained.
• An account holder can provide mandate to another person for operating the account.
However, signature of the account holder should always remain valid and account
operating instruction should not be implemented in such a way that single signature
of the Mandatee remains valid. To clarify further, if it is an individual or a sole
proprietor or partnership, mandate can be provided to another person, but the
signature of the account holder should always remain valid.
Similarly, for availing any new service in the account such as availing Mobile
Banking or Internet facility, connectIPS services etc., request is to be received from
the account holder only. Likewise, for discontinuing any service or closing the
account, request must be received from the account holder.
If the account holder cancels the mandate previously given to any person, mandate
enjoyed by the Mandatee for availing various banking services of the bank on behalf
of the account holder also gets cancelled. Hence, necessary changes in the CBS and
third party applications such as Mobile Banking, E-banking Demat, CCMS etc.
should be made on urgent basis for removing his/her contact details (mobile
number/email ID) from these systems.
• In case of Refugees, photocopy of an identity card issued by a government or any
other authorized body (UNHCR) can be accepted instead of citizenship.
• For opening account in USD or any other convertible foreign currency permitted by
NRB, income source document is to be obtained. Income source of foreign currency
could be service agreement with some foreign company, advance received for exports,
salary income from a foreign company, income earned by working as a freelancer of
a foreign based company, income earned from foreign employment, donation
received by NGO/INGO from foreign country, income earned by being a
blogger/vlogger in a social media platform, savings from foreign exchange facility
availed against passport while going to a foreign country, any other source as defined
in NRB‟s Foreign Exchange Management Unified Circular from time to time.
For showing repatriation of income from investment including investment in business
or shares, while staying in foreign country, as a source document to open a FCY
account, a copy of declaration made at NRB within 35 days after returning to Nepal
should also be obtained.
In case of an individual, FCY amount received as donation, gift etc. cannot be
considered as a source document for opening FCY account.

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• If the Beneficial Owner of an account is another person, firm, company, organization
then detailed information of the beneficial owners is to be taken from the customer
and updated in Finacle CBS.
• In case of Nepal Government or Offices / Institutions under Nepal Government,
Institutions established under Special Law, Licensed Financial Institutions by NRB,
Insurance companies, United Nations or its offices and Special Institutions and
International Institutions and Foreign Embassies, account can be opened on the basis
of request letter, AOF and KYC of authorized signatories only i.e. without obtaining
registration certificate, PAN and KYC of all the directors and shareholders holding 10%
or above ownership.
• Risk Categorization of all the accounts opened is to be done as per the AML / CFT
Policy/Procedures of the Bank and NRB Circulars on the basis of nature of business,
association with political party, high level position, estimated transaction volume etc.
• Each account should be immediately categorized to applicable risk grade as per
AML/CFT Policy/Procedures. No accounts shall remain with blank risk grade/profile
in AOF as well as CBS.
• CDD is to be conducted for low-risk and medium risk customers. Similarly,
Enhanced CDD is to be conducted to high-risk accounts. The time interval for
conducting CDD or ECDD according to risk grade of the account has been prescribed
in AML/CFT Policy/Procedures of the bank, which is to be complied strictly by
branches. Branches should insert the correct customer types while opening the
accounts. Branches should insert NRB Customer type under “NRB Customer Type”
field in MIS code tab in the Deposit accounts and respective field in the Loan
accounts as well.
• Branches should insert the correct nominee account in Fixed Deposit as well as in
Loan accounts respectively.
• Branches should compulsorily verify that all the required documents for opening
account have been obtained and information related to AOF and KYC forms have
been completely filled by the customers before providing cheque book or at the time
of providing other banking products and services to him/her (e.g. ATM Cards, Mobile
Banking, Locker, E-Banking, Cheque Book / Statement / Balance Certificate / Good
For Payment Cheque Issue, Renewal of Fixed Deposits etc).
• Branches should insert the correct customer types while opening the accounts. Branches
should insert NRB Customer type under “NRB Customer Type” field in MIS code tab in the
Deposit accounts and respective field in the Loan accounts as well
• Branches should insert CDD/ECDD review date in “ECDD/CDD Update Date (DD-
MM-YYYY BS)” field under MIS Codes tab of Finacle after CDD/ECDD review is
done for a particular account on periodic basis as per its risk category and required
frequency of CDD/ECDD. In case of KYC update, it should be inserted in “Normal
KYC Update Date (DD-MM-YYYY BS)” field under MIS Codes tab of Finacle.
Further for changing Risk grading, Branch should go to CRM module, edit the CIF,

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change “Risk Grade”, “Sub Risk Grade”, “Risk Rating” fields, select “Submit for
KYC field” as “Y” and ensure Suggested Process Name is
“CIFCustomerApprovalEdit/KYC-10.2” while submitting for edit. Further after
editing the CIF, branch should ensure KYC date and KYC review date is updated by
system.
• In addition to Branch Managers, branches should appoint an AML/CFT Compliance
Staff who shall report to AML/CFT Compliance Officer Head Office on AML/CFT
issues and Suspicious Transactions on periodic basis as required by AML/CFT
Policy/Procedures/Circulars.
• Branches should compulsorily fill all the sections of client details in a system, i.e.
Finacle-CRM module and Fincore account level, while opening an account. BM/
ABM/OI/Head CSD should approve the newly opened accounts only after verifying
that all the fields of client details in a system have been inserted with necessary
information supplied by the customers.
1.2.3 Online Account Opening
Online Account Opening module is an online medium of opening account in a bank. It is a
digital platform by which an individual can visit our bank‟s official website
www.ctznbank.com and follow a series of steps to fill up online account opening form and
open account in our bank. It provides convenience to customers to open an account in our
bank form from their home, office or anywhere at any time, without having to be in a queue
at the branch.
Our bank‟s online account opening module is not only easy, but also comprehensive that
allows the applicant to stay in the form and complete it or save it as draft and come back later
to complete the form. At present, our online account bank form only allows applicants to
open savings account schemes of the bank in either NPR or USD currency.
 For opening the account online, the applicant visits our bank‟s official site https://
www.ctznbank.com and selects Online Account Open under Online Products menu. The
applicant will be directed to the page containing various savings account products of the
bank. The customer can click on View More tab to view key features of the available
savings scheme. After choosing the Savings account scheme as per their need, the
customer will click on Apply Now tab to apply to open account.
 The applicant will be directed to online Account Opening Form. This page asks the
applicant to fill up basic information such as Applicant Type, Salutation, Applying from
Inside or Outside Country, Name, DOB, Email Address, Phone Number, Mobile
Number, and Applying from Country. After filling up this information, the applicant
has to enter the Captcha shown on the left bottom of the page and click on Proceed to
Account Opening Form tab. Once all the information is validated, customer will get an
OTP in his/her email ID and will be asked to enter the OTP to proceed to fill up the form.

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 After verifying the entered OTP, customer will be guided through series of steps
containing pages with headings such as Personal information, Professional Details,
Identity Verification, Other Details and Terms and Conditions.
 Once the customers fill up all the required data in online account opening module, the
staff of Central Operations reviews the form in the backend of the module to check if any
details or documents are missing in the form. If the form is found to be complete, the
concerned staff of the department shall forward the form to the concerned branch at
which the customer had applied to open the account.
 After receiving the online account opening form received from Central Operations, the
branch needs to upload the data and documents in Account Opening DMS of the bank for
forwarding it to Central Account Processing to open the account. The branch then prints
the online account opening form and identification documents of the customers for filing.
After the account number is received from CAP, it should be conveyed to the customer
by sending Account Opening Advice.
 The account opened under non-face-to-face basis falls under high-risk category as per
AML/CFT Policy/Procedures of the bank and branch should categorize the account under
high risk. However, since online opening requests are forwarded by Central Operations
Department to branches, there is no need to take approval for opening account through
online request.
 Hence, after opening the account through online medium, the customer needs to visit the
branch and complete all account opening formalities such as affixing signature and
thumb impression, submitting original ID for verification and 2 pp sized photographs.
Until then, the account is to be debit restricted and only credit transactions are to be
allowed in the account. However, the customer can avail mobile banking and internet
banking facility with inquiry rights only.
Once the customer visits the branch, there is no need to fill up new AOF or KYC forms as
online account opening form itself is a complete form incorporating required details of
both AOF and KYC forms. Hence, once the customer visits the branch, his/her signature be
obtained at the bottom of each page of online account opening form. Further, the
customer‟s signature and thumb impression are to be obtained in specimen signature card.
Similarly, the copy of identification documents is to be verified with the original copy.
However, if any of the document submitted by the customer is found to be incomplete, or
unclear, the branch can obtain another copy of the original documents.
1.2.4 Online Account Opening Through Nagarik Application
Nagarik App is a mobile application launched by the Government of Nepal to provide
various government related services in a single online platform. Various personal
identification documents such as Citizenship Certificate, PAN, Driving License, Voter‟s
ID Card, Citizen Investment Trust card etc. can be registered and various information

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related to local government, taxes submitted, services related to Citizen Investment Trust,
Police clearance report, Land ownership, Health Insurance Board, Educational details etc.
can be viewed from this app.
Similar to online account opening product, Online Account Opening Through Nagarik
App is also an online medium for opening account with the bank. However, the main
difference is that in this module, instead of generating OTP, in this module verification is
done by scanning QR Code generated by the module through the QR Code scanner of
Nagarik App. Moreover, various identification details of the customer that are already
present in the Nagarik App gets self-populated in the module and hence the customer has
to fill up less information when opening account through this module and the information
available in the Nagarik App is more reliable.
Hence, for opening an account through this online medium, the customer should have
Nagarik App installed in his/her mobile phone or PC.
For filling up online account opening form through this app, a customer has to visit our
bank‟s official website https://www.ctznbank.com and select Online Account Opening
using Nagarik App under Online Products. Then, he/she has to scan QR code generated in
the module with QR code scanner of the app. Then after, the applicant has to select the
account scheme of his/her choice and follow a series of steps containing pages such as
Personal Details, Professional Details, Other Details, Verification etc. to apply for opening
account in our bank. This product also allows the applicant to stay in the form and
complete it or save it as draft and come back later for completion. An account can be
opened through Nagarik App with verification from Citizenship or Passport. In case of
verification with Voters‟ ID or other documents, inputting details of citizenship certificate
or passport and uploading one of these documents is compulsory.
The online account opening requests through Nagarik app are also received by Central
Operations Department and after properly verifying the documents and other details
submitted, they will forward the request to concerned branch. After receiving the request
by the branch, they need to upload the account opening details and information in the
Account Opening DMS to open the account through CAP Unit. After account number is
generated, the branch needs to convey the account number to the customer and print the
online account opening request form and file it properly. In this case also, until the
customer personally visits the branch to complete the account opening process and
submits original documents, the account should be debit restricted.
The online account opening through Nagarik app is being developed in such a way that the
information filled up by the customer gets updated in the Finacle CBS and account
number is generated automatically by the system. Once this project is completed, accounts
will be opened automatically with very few manual transactions.

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1.2.4 Online KYC Update
E-KYC or Online KYC module provides an online platform to individual customers to
update their KYC details at the bank.
The E-KYC module involves series of steps through which the customer first needs to
input data to verify themselves as account holder of the bank and then proceed to update
their KYC details of their account. The module provides the customer with two options to
choose from to validate their identity before allowing him/her to proceed to view existing
KYC details and update them. The first option verifies the customer based on Account
Number and Mobile Number, while the second option verifies the customer based on
Account Number, Citizenship Number, Date of birth and Grandfather‟s name.
Once validation process is completed, the customer is diverted to online KYC form in
which their previous data present in our CBS is displayed and those data that are to be
filled up appear blank. Customers are required to fill up all the necessary fields that have
been marked as mandatory fields.
Once the E-KYC form is completely filled up, the customer can submit the online form.
The submitted E-KYC forms then after appears in the backend portal of the module,
which will be operated by the staffs of Central Operations Department. The E-KYC
forms are thoroughly checked by the staffs to ensure they are filled up by account holder
himself/herself and the customer has submitted complete set of document to update their
KYC. Once the Approver user approves the E-KYC form, the updated fields are directly
updated in the CBS of the bank.
The concerned branch is then sent notification mentioning that the CIF ID of their
customer has been updated in the system through E-KYC module and the digital copy of
KYC form is attached with the mail. The branch then needs to print the updated KYC
form and file it inside the Account Opening form of the concerned account.
1.3. Maintenance of Account opened
CSD shall work on behalf of the bank to provide assistance on the customer‟s account. Any
changes/amendments in the account and its details need to be incorporated by CSD upon
receipt of a written application from a customer. CSD needs to be equipped with sufficient
manpower and system in order to deal with following work areas:
1.3.1. Cheque Books
The main stock of cheque book remains in the control of General Service Department
(GSD), HO. After the cheque book stock is sent by GSD to a branch, it needs to transfer the
cheque from External location to Branch location (Double Lock) in Finacle CBS and then to
respective employee of branch as required based on nature of inventory. Each step needs
dual authentication and enterer and verifier need to check physical inventory number while
entering the same in CBS Finacle. Cheque needs to be segregated as normal cheque and
loose cheque and is to be assigned to individual employee. Manger‟s Cheque and Fixed

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Deposit Receipt need to be assigned to branch‟s Double Lock only. A proper stock of each
inventory item needs to be maintained by branch and same is to be updated in stock registers
(Specimen 59). Stock needs to be reconciled daily or on need basis as per security item.
• The cheque book should only be issued in following conditions:
• All the required documents and photographs for opening the account have been
obtained and AOF and KYC forms have been completely filled up.
• The customer has maintained minimum balance in the account.
• The image (signature/thumb impression/stamp/photograph) of the account has been
uploaded in the system.
• The AOF and KYC forms have been approved by the Branch
Manager/ABM/OI/Head CSD.
• The cheque book should only be issued against Cheque Requisition Form (Specimen 3) or
cheque request mentioned in AOF for the first time after opening account and Cheque
Requisition Slip (Specimen 7) then after.
• To avoid issuance of any unauthorized cheque book, the concerned staff should note that
they must mention following information on the overleaf of cheque requisition slip.
i. Account name and account number of the customer.
ii. Serial nos. in range of the cheque book issued.
iii. Cheque book issued date.
iii. Bank seal and full signature of the issuing authority.
• Cheque book is to be issued on presentation of requisition slip from the old cheque book
issued to the client and only after verifying the above particulars and authorized signature.
• Before issuance of cheque book the following factors should be considered:
i. If cheque book is to be issued against Cheque Requisition Form/Slip verify that
the form is presented by the person to whom such form/slip is issued by
demanding reliable ID documents or by other appropriate means.
ii. Verify the signature of the customer on the cheque book requisition form/slip.
iii. If the customer does not appear in person, see that the account holder has
authorized an agent and sample signature of the agent has also been mentioned.
iv. Verify the signature of the account holder from the system and of the agent on
the basis of specimen signature provided in the requisition slip.
v. Check the stock of valid cheque leaves of previous cheque book in the system.
If there are sufficient number of previous unused cheques, make necessary
enquiries with the customer to ascertain the genuineness of request & forward
the case to OI/ABM/Branch Manager (BM) for approval.
vi. Before issuance of new cheques, check in system as well as in register if there
are any previously issued uncollected cheque book of the same account. If
previous cheque is found, such uncollected cheques should be provided to
customer instead of issuing new one.
• All the printed cheque books that remain uncollected should be kept inside the cash vault at
the end of the day and taken out in the morning of the next day on daily basis.
• If the person other than the Account Holder comes to collect the cheque book on behalf of
the Account Holder, then the cheque book should be issued only after obtaining a copy of

23
identity of the person visiting the bank to collect the cheque book and authorization of
Account Holder. The concerned staff may contact the customer for confirming the
genuineness of cheque printing request if felt necessary.
• Entries in the Cheque Book Issue Register (Specimen 8) should be made compulsorily at
the time of issuing of cheque book. The signature of a recipient will be obtained in this
register as a token of having received the cheque book. The issuer of cheque book will
ascertain that signature placed on the cheque issue register is the same as placed in cheque
book requisition form.
• While delivering the cheque book to the client, he should be asked to count the leaves
before acknowledging it.
• All the documents received for the issuance of cheque book i.e. cheque book requisition
form/slip, identification etc. will be attached together and kept in a separate file.
• At the end of the day, the Head CSD/OI should check the following particulars and then
approve the cheque issue in the Finacle System:
i. Particulars mentioned in the register are true.
ii. The new serial no. of cheques (as of stock inventory system) has been fed in the
computer.
iii. The cheque book requisition form/slip submitted for issuance of cheque book belongs
to the person requesting the issuance of cheque book.
• The departmental stock of cheque books should be tallied daily by the custodian.
• If any person visits the bank to collect the cheque book after 2/3 days of cheque book
requisition date, the issuing authority should confirm the genuineness of the person and
his/her signature should be verified.
• If there is any mistake in printing of cheque(s) or if the cheque(s) becomes invalid in any
other way before or after the issuance, then details should be made in Cheque Book Issue
Register with appropriate remarks, if cheque is found void after saving it in the system,
record should be made in separate Void Cheque Register (Specimen 9).
• The record should be maintained in separate Void Cheque Register, if the cheque found
void before saving the cheques in a system and by other means.
• All such void cheque books should be filed in a separate index file for future reference and
should be placed inside vault room.
• Such void cheques will be destroyed after verifying in the presence of the representative
required for destruction on uncollected cheques.
1.3.1.1. Uncollected Cheque Books
 If any cheque book has been printed but not collected by the account holder within 90 days,
the cheque book needs to be transferred to a separate fireproof cabinet or vault and remarks
of such transfer should be made in cheque book issue register with signature of concerned
staff/s.
 If any cheque book remains uncollected for more than 1 year after being printed, due to any
reason such as the customer being out of contact, customer is staying in foreign country etc.
the cheque book should be destroyed by the branch. The charge as per the standard
schedule of charges have to be recovered.

24
 When a cheque issuing request is received from a customer, the branch needs to check in
the system and cheque book register about whether previously issued cheque book of the
account has remained uncollected by the customer. If there is uncollected cheque book, the
old cheque book should be provided to the customer instead of issuing new cheque book.
 For disposal of the cheque book, following conditions should be met:
 The statement of account is scrutinized and the movement of account justifies for
disposal of cheque books.
 The customer has been contacted over telephone and causes for not collecting the
cheque book have been identified.
 In absence of contact number or if the customer could not be contacted over
telephone, a written information has been sent to the customer and if the customer
does not reply within a period of a week.
• Before destroying the uncollected/ damaged cheque book an inventory of cheque book
should be prepared. Cheque number shown as valid in the inventory of the banking system
should be marked Invalid before destroying the cheque books of respective account holders.
The justification to destroy these cheque books should also be mentioned in the inventory
list. The inventory should be prepared in the following format:
 Cheque requisition date
 Cheque number (From ___ to ___)
 Account number
 Account title
 Justification
• Cheque book can be destroyed in the presence of following representatives of the bank:
 Branch Manager
 CSD staff
 Operation In-charge/Head CSD.
 Representative from Internal Audit Department
• After destroying the cheque book, the signature of all the representatives as stated above
will be obtained. The signed inventory of destroyed cheques will be kept in record by the
concerned Department/Branch for future reference.
1.3.1.2. Issuing of Cross Branch Cheque Book
With the objective of providing additional facility to our valued customers, enabled by
Finacle CBS system, branches can issue cheque book of customers, who are
maintaining account in another branch. However, the risk associated with providing
this service cannot be ignored. This is due to the fact that the branch issuing the
cheque book may not know the customer very well and there is high risk of forgery of
signature in cheque requisition slip that may have been lost by the account holder or a
dispute may have aroused among authorized signatories of a company. Cheque book
acquired against cheque requisition slip with forged signature may result in financial

25
loss to the customer and customer may claim to make over the loss if there is any
negligence on the part of the bank while issuing cheque book.
Hence, a standard procedure as explained below has been placed that needs to be
followed by branches for providing cross branch cheque issuance facility to the
customers by minimizing associated risks:
 When a customer of one branch approaches another branch for issuing a cross
branch cheque, the branch needs to verify that the person visiting the branch is the
account holder himself/herself in case of account of an individual or one of the
authorized signatories in case of a firm/company. In special cases and only if the
account belongs to a large company or a high profile person, an agent may be
appointed for collecting the cheques. In such case, the cheque requisition slip also
needs be accompanied by a request letter of the individual/company having
signature/s of the authorized signatory/ies and a valid ID card of the agent.
 The cheque requisition slip should be filled up and signed by the required number
of signatories according to the account operating instruction available in the
image of the account in Finacle CBS. The branch needs to verify the signature
done on the cheque requisition slip and Signature Verified stamp is to be affixed.
 The branch also needs to obtain a valid ID card, preferably citizenship certificate
or passport, of the account holder/authorized signatory and that of an agent in case
agent has been appointed by any company to collected the cheque. The copy of
the ID card needs to be verified with the original copy and Verified with Original
stamp needs to be affixed.
 In case of authorized signatory, branch also needs to verify his/her identity
through photograph available in the image of Finacle CBS as well as by asking
questions related to his/her personal information and then verifying the answers
with the details of account holder/authorized signatory available in the CIF ID in
Finacle such as address, date of birth, name of grandfather etc.
 After verifying these documents, the branch forwards the request to the account
maintaining branch for getting their consent through email by attaching cheque
requisition slip and copy of identity card obtained thereof. Such request is to be
forwarded by Operations In-charge, ABM or BM or at least Supervisor level staff.
 When sending request to account maintaining branch, the cheque printing branch
should also provide confirmation as “We confirm that the customer has personally
visited our branch and we have verified his/her identity through signature,
photograph and cross checked his/her personal details with details present in
Finacle CBS”.
 If the account belongs to joint individual or a firm/company, instead of
mentioning just customer, the cheque printing branch should clearly mention if
the cheque collecting person is one of the authorized signatories of the account or
an agent.
 When the account maintaining branch receives such request, they should check
AOF and KYC forms and supporting documents of the account to ensure all

26
documents are up to date. If they found that the account is dormant, some
documents are missing or KYC is to be updated for CDD/ECDD etc., they would
request the cheque book printing branch to provide completely filled up new KYC
form with photograph and missing documents, if any, and/or account activation
request form of the customer.
 Upon getting such request, the cheque book printing branch should provide the
required documents by sending scanned copy of the documents for cheque
printing process and then later send the original documents through courier
without fail.
 The account maintaining branch should also contact the account holder/authorized
signatory through phone/mobile number mentioned in the system to confirm the
authentication of the request.
 If all the documents are found up to date and the customer confirms over
telephone that the request has actually been made by him/her/them, the account
maintaining branch should provide consent to the cheque book printing branch by
providing confirmation as, “We confirm that we have checked all the AOF
documents including KYC of this account and found them in good condition and
updated. Further, we also confirm that we have contacted the account
holder/authorized signatory and verified that the cheque printing request is
genuine”. Such confirmation is to be provided in reply mail by Operations In-
charge, ABM or BM or at least Supervisor level staff.
 After receiving consent from the account maintaining branch, the cheque printing
branch can then proceed to print the cheque book by following normal procedures
of cheque printing.
 Both branches need to keep a copy of the email conversation done between the
two branches regarding consent/confirmation provided from each other‟s side in
record along with cheque requisition slip and identification document. A separate
file can be maintained to keep record of all the cross-branch cheque books issued
by the branch.
 If the old cheque book or only cheque requisition slip has been lost by the
customer, the cheque printing branch should obtain cheque book lost charge as
per our standard charges and follow the procedures as mentioned in serial no.
1.3.1.2. Both cheque printing branch and account maintaining branch should be
extra cautious in case the customer claims to have lost previous cheque book or
cheque requisition slip to ensure that the cheque book is not issued to an
unauthorized person.
Note: If the cross-branch cheque is to be printed of Staff account, consent of cheque book
maintaining branch is not required. The cheque book printing branch can directly print the
cheque book by obtaining cheque requisition slip from the concerned staff and verifying
his/her signature. However, all staffs should ensure that they have submitted a completely
filled up AOF, KYC form, identification document and photograph to the account
maintaining branch (Durbarmarg Branch). The staffs can also update their KYC
information through E-KYC service.

27
1.3.1.2 Procedures for Issuing Cheque Book against Lost Cheque Book.
If the customer has lost previously issued cheque book, he/she/they will inform the
same to the bank through application (Specimen 64) mentioning details of cheques to
be stopped/destroyed. Extra precaution is to be taken for issue of a cheque book in
absence of the requisition slip. There may be numerous causes for non-presentation of
requisition slip i.e. cheque book itself may have been lost or requisition form duly filled
in may have been misplaced etc. To avoid any possible loss to the bank, following
precautions should be taken.
• In case of individual A/C, the individual must himself visit the bank with the formal
request letter. The cheque book should be issued only to the concerned account holder
after verifying personal identification like original citizenship certificate, license etc.
• In case of corporate and other clients, a formal request letter to issue the cheque book in
absence of requisition slip should be obtained containing signature/s of the authorized
signatory/ies and stamp as per specimen of the account. The authorization letter should
also specify name and specimen signature of the authorized person collecting the
cheque.
a. An identification proof of the authorized person should also be obtained.
b. The issue of cheque book in absence of requisition slip will be made only after
telephonic confirmation from the client.
• All such cases will be brought to the notice of the Branch Manager, with the signature
of BM/ABM/Operation In-charge.
• If the cheque requisition slip was not produced in the pretext that the cheque book was
lost, all the unused cheques should be stopped immediately and indemnity form should
be obtained from the customer. The account holder should mention the cheque numbers
that has already been issued by them and need not be stopped in the request letter.
• In case of loss of cheque book having joint accounts, the request letter should be signed
by the authorized persons as per the application form and any one of the authorized
persons should personally visit the bank for obtaining new cheque book.
• The loss of cheque requisition slip alone should also be treated as cheque book lost case
and applicable charges should be deducted from account as per bank‟s schedule of
charges.
1.3.1.3 Cheque Book Printing in Restricted accounts
If the reason from the account restrictions is due to dormancy, deceased, account
blocked by CIAA or any other government entities/ law enforcement agencies, etc., the
cheque book can be printed only after such restriction is released.
1.3.2. Loose Cheques
• If a customer is in emergency need of fund, but has forgotten to bring his/her cheque
book and ATM or has brought only his/her ATM, but there is problem in the ATM. In
such emergency circumstances, bank may issue a single cheque, called as loose cheque,
to the a/c holder allowing him/her to withdraw money from his account.

28
• The issue of loose cheques should be discouraged as far as possible. If it is unavoidable,
it can only be issued to the customer after taking consent from BM/ABM/OI of the a/c
maintaining branch by forwarding application submitted by him/her (Specimen 16).
• The purpose to withdraw cash through loose cheque should be justifiable and amount
requested for withdrawal should be reasonable according to purpose mentioned. Under
normal circumstances, the amount of loose cheque should not exceed Rs.500,000.00. In
special cases, if customer requests to pay amount higher than Rs.500,000.00, approval is
to be obtained from COO or higher authorities by forwarding the application of the
customer with signature verified.
• The loose cheque can be used both for withdrawing cash or transferring fund to another
account.
• Account holder should be self-present for requesting issuance of loose cheque and
his/her signature in the application should be verified by affixing signature verified
stamp.
• All the entries in Loose-Cheque-Issued Register (Specimen 17) should be made by the
staff concerned.
• Number of loose cheque/s issued will be filled in by the staff of CSD and receipt of
cheque must be acknowledged by the account holder on the register.
• Payment of huge amount through loose cheques should be discouraged as far as possible
and loose cheques should not be issued to the same customer time and again.
1.3.3. Withdrawal Slip
 Withdrawal Slip is another banking instrument that allows customer to withdraw money
from his account without cheque book.
 However, whereas serial number of cheque books are recorded in the system and linked
to an account when cheques are issued to a customer, withdrawal slip does not have a
serial number and is not linked to any particular account.
 Due of this, there is high risk of forgery of signature if withdrawal is allowed through
withdrawal slip without properly verifying the identity of customer.
 Hence, withdrawing from account using withdrawal slip should be allowed only in case
of emergency circumstances such as the following:
 Customer wanted to withdraw money from ATM, but ATM is not working or
there is technical problem in the ATM card issued to the customer.
 Customer has faced medical emergency and wants to withdraw money to make
payment to hospital/clinic/pharmacy etc.,
 Any other emergency circumstances faced by the customer that justify issuing
of withdrawal slip to withdraw money from account due to absence of cheque
book.
 Considering the risk associated with issuing withdrawal slip, maximum withdrawal
amount that can be allowed using withdrawal slip should be NPR 25,000/- and
approval of the BM or OI is to be taken for transactions done through withdrawal slips.

29
 In case of any emergency circumstances that justify customer‟s request to withdraw
amount above NPR 25,000/-, request for approval is to be forwarded to Central
Operations Department for taking approval from COO or higher authorities.
 Withdrawal slip should only be allowed to retail customers (account of an individual)
and not to corporate customers (account of firm/company).
 Due to inherent risk, withdrawal slip should only be allowed as last resort and
customer should be asked to use Digital Teller service or issue Loose Cheque as far as
possible.
 Applicable charge for issuing withdrawal slip is to be recovered from customer as per
bank‟s standard fees and commission.
1.3.4. Fund Transfer Form
Fund Transfer form is a banking instrument allowing customer to transfer fund from
one account to another without the use of cheque book.
 However, similar to withdrawal slip, this instrument is not registered in the CBS like
cheque book and is therefore less secured.
 Hence, transfer of fund through account transfer form should only be allowed only in
case of emergency need to transfer of fund between accounts in absence of cheque
book.
 The transfer of fund through account transfer form should only be allowed to transfer
fund up to Rs.200,000.00.
 If the request of transferring of fund above Rs.200,000/- is found genuine and
justifiable to the BM/OI, he/she can forward the request to Central Operations
Department for taking approval from COO or higher authorities.
 The aforementioned limit for transferring fund between two accounts is not applicable
if the fund transfer is being made for opening Fixed Deposit account.
 The branch should still insist their customers to provide cheque book or avail Loose
Cheque facility for making the fund transfer as far as possible.
 Applicable charge for issuing withdrawal slip is to be recovered from customer as per
bank‟s standard fees and commission.
1.3.5. Statement of Accounts
• Statements of accounts will be handed to the customers on their demand. For this,
Statement Request Form (Specimen 10) should be filled up by the customers.
• In case the a/c holder sends an agent, on his/her/their behalf, to collect the statement, the
signature of the a/c holder in the Statement Request Form should be duly verified and a
copy of identity card, duly verified with the original, of the agent should to be obtained.
The statement of account will be then printed and handed over to the agent after
obtaining agent‟s signature in the Statement Record Register (Specimen 11).
• Statement Record Register is to be maintained for every issuance of statement in order
to keep the records of the statement collected by the customers.
• In the self-presence of the customer and after properly verifying his account details and
signature on the Statement Request Form, Cross Branch Statement could be issued.

1663789117187Operations Manual 2022 Draft.pdf

1663789117187Operations Manual 2022 Draft.pdf

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