BANKING Q & A #nepalbankingpreparation #nepalrastrabankpreparation #adblpreparation #nblpreparation

 1. Meaning and Definition Of Commercial Bank

An organization that provides various financial services - Oxford Advanced Learner's  

A bank is an institution whose debts "bank deposits" ae commonly accepted in final settlements of other people's debt." - Sayers

kinley- "A bank establishment which makes to individuals such advances of money as may be required and safely made, and to which individuals entrist money when not required by them for use."

 According to Nepal Rastra Bank Act "Bank"meanstheNepalRastraBankestablishedunderSection3.

A banker is a person, firm or company having place of business where credits are opened by the deposit or collection or money or currency subject to be paid or remitted upon draft, cheque or where money is advanced  or loaned on stock, bonds, bullion and B/E and P/N are received for discount and sale."-prof. Findlay shirras

 
2. Importance of Commercial Bank 

- Free From Economic Exploitation

- Collection, Mobilization of savings and capital Formation 

- Development of Agriculture and Industrial Sector

- Protection of Assets 

- Increase in Employment

- Transfer of Found 

- Balance Development

- Implementation of Monetary Policy 

- Technical Services 

- Mobilization of Government Resource


3.Functions of Commercial Bank

 1. To Accept Deposit

    - Current Deposit Account  

            Everyone has different banking needs, but every business needs a bank account.  

            Features  

            Withdrawal Below minimum balance 

            Extended Banking Hours in Kathmandu Valley Branches 

            Standing Instruction             

            Cash Management 

            Free Chequebook  

    -Saving Deposit Account

          Features           

            Attractive interest rate 

            Affordable balance 

            Unlimited Withdrawals

            Withdrawal below minimum balance 

            Extended Banking Hours in Kathmandu Valley Branch

            Free Chequebook 

    - Fixed Deposit Account    

            Attractive Interest Rate  

            Wide Options of tenure

            Auto Renewal Possible

            Loan Facility upto 90% of Deposit Amount

            for example Account :- Karma Yogi Bachat khata, Mahalaxmi Bachat Khata, Chunamuna Bachat Khata, Teacher's Bachat Khata

    - Call Deposit Account 

2. To Advance Loan     

     - Funded Loan

            Overdraft/ Hypothecation Loan : Overdraft/ Hypothecation Loan is a revolving credit facility that finances the everyday operation of the customers business and fulfills its working capital requirement.

        Pledge Loan

        Term Loan

        Project Loan

        Trust Receipt Loan

        Export Loan

        Bill Purchase (Clean Bill)

        Loan for Infrastructure based Industries 

        Consortium Loan

   -Non-Funded Loan

        Letter of Credit : The bank Provide LC Facilities to its customers to facilitate the import.

        Bank Guarantee      

    - Loans And Advances

    - Overdraft

    - Commercial Loan

    - Social Loan

    - Discounting of Bills of Exchange 

    - Retail loan provides finance to fulfill your personal needs.

        Housing loan 

        Vehicle Loan

        Hire Purchase Loan

        Educational Loan

        Apartment Loan

        Loan Against Gold 

        Loan against Fixed deposit receipt 

        Loan against the government bond

        Perconal Loan

        Rastra Sewak Loan

        Loan against the first class bank guarantee

3. Creation of Credit

4. To Promote the Use of Cheque

5. Agency functions 

    -Collection and Transfer of Funds

    - Collection of Dividend 

    - Purchase and sales of Share and Securities 

    - Payment of Premium 

    -Income Tax consultant

    - Purchase and sales of Foreign Exchange

    - To assist Internal and foreign trade

    - Others Functions:- 

         - Safe Deposit Vault

         - Traveler's Cheque 

6. Remittance Services 

     - Remit Online 

      - Korea Remit 

      - SWIFT

7. New Services

        Branch-less Banking 

        Cash Deposit Machine 

        Internet Banking

        Mobile Pay    

        Mobile Banking

        ATM Card

        ABBS

        Locker

        Trade Finance

        SFAF Service  

  

Nisos Basnet

 

Comments