General Practice of Banking Department at Nepal Rastra Bank

Baluwatar, Kathmandu

Submitted By
Sushant Adhikari
PU registration no: 066-2-2-01612-2019
Kantipur International College (KIC)
Purbanchal University

An internship report submitted to Purbanchal University, Faculty of Management

in partial fulfillment for the Degree of Bachelor of Business Administration (BBA)

December 2023
Buddhanagar, Kathmandu
Certificate of Internship
 Declaration

I hereby declare that this report entitled “General Practice of Banking Department
at Nepal Rastra Bank” has been carried out under the guidance of Mr. Laxman Tandan and
submitted to Purbhanchal University in partial fulfilment of Bachelor of Business
Administration (BBA) degree. The report is based on my personal experience and
observation from my internship in the banking department of Nepal Rastra bank.

I further declare that this report is my original work, and the internship report has
not been submitted to any other universities or institutions for the award of any degree,
diploma or other similarities.

Mr. Sushant Adhikari

Signature
 i

Acknowledgment

I would like to express my sincere gratitude and appreciation to all those who have
supported and guided me throughout my internship and the completion of this report.

I would like to begin by expressing my deepest gratitude to Purbanchal University

and Kantipur International College for granting us the incredible opportunity to embark on
a transformative journey towards nurturing our professional growth.

I extend my heartfelt thanks to the management and staff of Nepal Rastra Bank for
providing me with the opportunity to undertake this internship. Their guidance,
encouragement, and expertise have been invaluable in shaping my understanding of the
banking industry and enhancing my professional growth. A sincere gratitude to Mr.
Dayaram Sharma Pangeni (Executive Director, Banking Department, Baluwater), for
providing me such an opportunity to complete my internship. I would also like to extend
my gratitude towards Mr. Durgesh Gopal Shrestha (Director), Mrs. Neera Talchabhadel
(Director), Mr. Subash Acharya (Director), Mr. Madan Pandit (Deputy Director), Mrs.
Binti Shrestha (Deputy Director), Mr. Subodh Man Shrestha (Deputy Director), Mr. Geda
Pangeni (Deputy Director), Mr. Tika Ram Timilsina (Deputy Director) and all the staffs of
NRB for their tremendous direction, support, and encouragement throughout my
internship, which has helped me build my abilities and get practical experience in the area.

Finally, I'd like to express my heartfelt gratitude to everyone who helped make my
internship and this report a success. Your help and advice have been invaluable in shaping
my learning and professional development.

Yours Sincerely,
Sushant Adhikari
BBA 7th Semester
 ii

Table of Contents

Acknowledgment ------------------------------------------------------------------------------------------ i
Table of Contents ----------------------------------------------------------------------------------------- ii
List of Tables --------------------------------------------------------------------------------------------- iii
List of Figures -------------------------------------------------------------------------------------------- iv
Abbreviations ---------------------------------------------------------------------------------------------- v
Executive Summary ------------------------------------------------------------------------------------- vi
Chapter I --------------------------------------------------------------------------------------------------- 1
Introduction ------------------------------------------------------------------------------------------------ 1
1.1 Overview of the Organization ---------------------------------------------------------------------- 1
1.2 Brief history of Nepal Rastra Bank ---------------------------------------------------------------- 1
1.3 Nature of Nepal Rastra Bank ----------------------------------------------------------------------- 3
1.4 Number of the employees in 2023 ----------------------------------------------------------------- 4
1.5 Organizational structure ----------------------------------------------------------------------------- 5
1.6 Significance of Study -------------------------------------------------------------------------------- 6
1.7 Organization selection ------------------------------------------------------------------------------- 6
1.8 Objective of the Study ------------------------------------------------------------------------------- 6
Chapter II -------------------------------------------------------------------------------------------------- 7
Observation ------------------------------------------------------------------------------------------------ 7
2.1 Introduction to the Banking Department ---------------------------------------------------------- 7
2.2 Functions of the Banking Department Sections -------------------------------------------------- 8
2.3 Analysis of Works and Activities Performed ----------------------------------------------------12
Chapter III ------------------------------------------------------------------------------------------------15
Observational Experience and Reflection ------------------------------------------------------------15
3.1 Analysis of Process, Procedures and Challenges ------------------------------------------------15
3.2 Lessons Learnt ---------------------------------------------------------------------------------------15
Chapter IV ------------------------------------------------------------------------------------------------17
Conclusion and Recommendation ---------------------------------------------------------------------17
4.1 Conclusion--------------------------------------------------------------------------------------------17
4.2. Recommendation -----------------------------------------------------------------------------------17
References ------------------------------------------------------------------------------------------------19
 iii

List of Tables
Table no 1.1. Number of employees of NRB in 2023……………….………..…….4
 iv

List of Figures
Figure No 1.1. Organizational Structure of NRB………………………………...……………7
 v

Abbreviations
AUD : Australian Dollar
BFIs : Bank and Financial Institutions
BOD : Board of Directors
CR : Credit Record
CNY : Chinese Yuan
DR : Debit Record
ECC : Electronic Cheque Clearance
ED : Executive Director
FOREX : Foreign Exchange
GBP : British Pound Sterling
IC : Indian Currency
IMS : Inventory Management Software
JPY : Japanese Yen
L/C : Letter of Credit
MICR : Magnetic Ink Character Reader
NCHL : Nepal Clearing House Limited
NPR : Nepalese Rupees
NRB : Nepal Rastra Bank
OLF : Overnight Liquidity Facility
ORMT : Overseas Remittance and Money Transfer
PM : Post Meridiem
RTGS : Real Time Gross Settlement
SWIFT : Society for Worldwide Interbank Financial Telecommunication
USD : United States Dollar
 vi

Executive Summary
The internship program exceeded all expectations and proved to be quite useful to the
intern. There were several possibilities for me to learn and get practical experience as an intern,
from engaging with clients to using various financial systems. The intern was overjoyed to be able
to intern in a bank because they had always been interested in the banking business. The internship
was completely unique and presented the intern with a plethora of fresh experiences.

The intern saw disparities between academic understanding and actual implementation
during the internship time. Working for a short period of time in several departments of the
banking department, such as Internal Administration, Remittance, Government Accounting
section, IC, ECC, and Ledger Accounting, exposed the intern to a variety of work situations,
challenges, and solutions acquired knowledge and experience.

During my internship, I learned the value of time and punctuality, as well as how to interact
with experts. As a result, my internship has significantly aided in the development of my
personality and character.
 1

Chapter I
Introduction

1.1 Overview of the Organization

The Bachelor of Business Administration (BBA) course is a prominent undergraduate
degree program that gives students a comprehensive grasp of all aspects of business and
management (Alam et al., 2012). The BBA program comprises courses in finance, marketing,
human resources, operations, and entrepreneurship (Parvin et al., 2021). It provides students
with a solid foundation in business concepts and practices while also developing critical
thinking, problem-solving, and decision-making abilities (Kallet, M., 2014). Students
participate in case studies, group projects, internships, and experiential learning activities,
which frequently integrate academic knowledge with practical applications (Coll et al., 2011).
The BBA course emphasizes communication, teamwork, leadership, and ethical issues in order
to develop well-rounded business professionals. BBA graduates are well-prepared to pursue a
variety of careers.

The central banks were established with the primary goal of financial stability, price
stability and maintain long term viability of countries economy. As the times change the
responsibilities of central banks also change with it. Nowadays, central banks make monetary
policy, be the lender of last resort, oversee banking system, set interest rate, lend money to other
banks, and control the money supply (Padoa-schioppa,2003). Likewise, NRB's tasks include
formulating necessary monetary and foreign exchange policies to preserve market price
stability, issuing currency notes, regulating, and supervising the banking and financial sector,
and developing efficient payment and banking systems, among other things. The NRB also
serves as Nepal's economic counselor to the government. As Nepal's central bank, it is the
monetary, supervisory, and regulatory agency for all commercial banks, development banks,
financing firms, and microfinance institutions (Subedi, 2008).

1.2 Brief history of Nepal Rastra Bank

Nepal Rastra Bank, Nepal's central bank, was created 19 years after Nepal Bank
Ltd, the country's first bank, was established in 1937. Prior to 1956, Nepal did not have
its own foreign currency reserve and instead kept it with the Central Bank of India. An
application had to be sent to the Reserve Bank of India in order to get the foreign
currency amounts necessary to cover the expenditures of the Nepalese Embassy in
London and King Tribhuvan's medical care. The simultaneous circulation of two forms
 2

of money, Nepalese and Indian, was one of the challenges that plagued the Nepalese
economy. The Indian rupee was widely used in Nepal. Local dealers set the exchange
rates between the Indian and Nepali currencies. Seeing this as a dependence on India,
King Mahendra, the son of King Tribhuvan, established a central bank on April 26, 1956
in order to reduce dependence on India by replacing Indian currency in the market and
strengthening the countries' sovereignty by making Nepal independent in foreign
currency exchange

Nepal Rastra Bank opened its first bank account with the Reserve Bank of India
shortly after its establishment, before any other bank in Nepal had working accounts.
To create its bank account at the Reserve Bank of India, then-Governor Himalaya
Shumsher JB Rana wrote to then-India's secretary of economic affairs, Braj Kumar
Nehru, and the first NRB account was formed in his name. Following that, NRB
established an account with another bank in India, followed by one in London.

The early banknotes issued during King Tribhuvan's reign were not circulated by
a Central Bank, but rather by His Majesty's Government, then known as the Government
of Nepal, through the "Sadar Muluki khana" (Central Treasury) from September 1945
to February 1960, and were signed by a Kajanchi (treasury head). Following then, the
task was transferred to the NRB. The NRB established the Note Department in
September 1956 for this purpose, which was renamed the Currency Management
Department in November 2002. The NRB issued its first bank notes in the denomination
of Mohru 1 on February 19, 1960. The signature on bank notes was replaced by the
governors of the central bank rather than the head of treasury in all bank notes issued in
the country after this date.

The Central Bank of Nepal was established under the Nepal Rastra Bank Act of
1955, which stated that the bank's principal job was to guarantee "proper management
for the issuance of Nepalese currency notes." Later, the Foreign Exchange Regulation
Act of 1963 established the NRB as the country's custodian of foreign exchange
reserves. Nepal's decision to use a fixed exchange rate with Indian rupee, combined with
supportive government policies, contributed greatly to local traders' trust in both the
home currency and the exchange rate. Furthermore, throughout this decade, the national
strategy of foreign relations was established, laying the groundwork for participation in
international organizations such as the International Monetary Fund (IMF) and the
 3

World Bank (WB) in 1961. Because of these policies, Nepal Rastra Bank was able to
successfully circulate the new Nepalese rupee as legal tender in Nepal's Terai region,
which was dominated by Indian currencies, facilitating the country's elimination of the
dual currency period in 1964 and making Nepal independent in foreign currency
exchange. Nepal's foreign exchange reserves were held in Indian banks prior to 1956.
Nepal's foreign exchange reserves are currently held by the NRB. Only a certain
percentage of foreign exchange reserves is held by other banks.

Based on the Financial Sector Strategy Paper, which the Government of Nepal
officially published on November 22, 2000, the Nepal Rastra Bank Act, 2002 was
adopted, under which the bank is still operating today. According to the statute, its
principal function is "to make necessary decisions concerning the denominations of
bank notes and coins, the figures, size, metal, materials for printing notes and other
materials, and to frame appropriate policies concerning their issue." The NRB issued its
first monetary policy under this statute in the fiscal year 2002/03, 46 years after its
foundation. Since then, the central bank has issued monetary policy every year to aid in
the implementation of the government's yearly policy and budget plan, as well as to
ensure financial stability.

1.3 Nature of Nepal Rastra Bank

The Nepal Rastra Bank (NRB) is the country's principal regulatory and monetary
authority. The NRB, as the country's central bank, plays a critical role in shaping the
country's financial environment. It devises and implements monetary policies to manage
the money supply, interest rates, and exchange rates in order to maintain economic
stability and growth. Furthermore, the NRB serves as the country's financial system's
watchdog, monitoring and regulating the activities of commercial banks, development
banks, and other financial organizations. It issues and manages the country's currency,
manages foreign exchange reserves, and acts as the government's banker. The NRB also
helps economic development by developing policies that promote growth while
protecting the nation's financial stability. In essence, the Nepal Rastra Bank is a
cornerstone of Nepal's financial system, dedicated to protecting its citizens' interests and
promoting the country's economic success.
 4

1.4 Number of the employees in 2023

Table no 1.1 Number of employees of NRB in 2023
Post Male Female Total
Officer 18 0 18
Special
Officer First 47 8 55
Officer Second 170 28 198
Officer Third 196 94 290
Officer Total 431 130 561
Assistant First 127 37 164
Assistant 193 69 262
Second
Assistant 10 2 12
Third
Office 54 29 83
Subordinate
Total 815 267 1082
Total(%) 75.3% 24.7% 100%

Source: nrb.org.np
 5

1.5 Organizational structure

Figure no 1.1. Organizational Structure

Source: nrb.org.np
 6

1.6 Significance of Study

Doing an internship holds immense importance for individuals aspiring to excel in their
chosen fields. It provides a unique opportunity to bridge the gap between academic learning
and real-world application. Internships offer practical exposure, allowing individuals to their
theoretical knowledge in a professional setting. This experience not only enhances their
understanding of industry practices but also helps develop crucial skills and competencies.
Through internships, individuals can cultivate and refine their technical expertise,
communication abilities, problem-solving skills, and teamwork proficiency. Additionally,
internships provide invaluable industry insights and a chance to explore different career paths,
enabling individuals to make informed decisions about their professional aspirations.
Furthermore, internships serve as a networking platform, enabling individuals to build
connections with professionals in their field and potentially secure future job opportunities.
Moreover, internships contribute to personal growth by promoting adaptability, resilience, and
self-confidence.

1.7 Organization selection

I chose to complete my internship in the banking sector so that it aligns with my future
career goals. Within the banking industry, the central bank holds the highest importance.
Therefore, it was an easy decision for me to select an organization for my internship, as I had
already set my sights on joining NRB. I was curious about the working environment and
atmosphere at the central bank and choosing NRB turned out to be the right decision. The
employees there were incredibly helpful and welcoming, which allowed me to learn a great deal
about the various activities carried out by the organization.

1.8 Objective of the Study

The general objective of the internship is to understand the banking practices of NRB. The
specific objectives are as follows:
● To explore an understanding of professional culture
● To enhance personal and professional growth
● To develop professional skills
 7

Chapter II
Observation

2.1 Introduction to the Banking Department

Acting as the government's agent, serving as the bank for other banks and financial
institutions, managing government agency and commercial bank accounts, collecting revenue,
making cash payments from government accounts, transferring funds as instructed, preparing
draughts, remitting amounts within and outside of the country, managing public debt such as
government securities, paying interest The Banking department is divided into several parts,
including:

Internal Administration Section

a. Ledger Section

b. ECC Section

c. Government Accounting Section

d. Foreign Exchange Section

e. Remittance Section

f. Letter of Credit Section

g. IC Section

h. Bills Section

i. Refinance Section

j. N.C Payment Section

k. Admittance Section
 8

2.2 Functions of the Banking Department Sections

I. Remittance Section:
FCY In: It is also known as IRMT, this section deals with exchanging foreign
currency with Nepalese currency. Garbage posting is also performed in this
section which is foreign currency being exchanged into Nepalese currency for
Mountain Trekking.
FCY Out: It is also known as ORMT, this section deals with exchange of foreign
currency for Nepalese currency with documents such as passport, visa, and ticket
photocopies required, as well as a letter from the government organization if needed;
otherwise, a form is provided to fill out with personal and currency details. Some
currencies are not accepted, but the most popular are USD, AUD, GBP, JPY, CNY,
and THB. Other financial institutions exchange their foreign currency into Nepalese
currency.
II. IC Section: Those displaying Nepali citizenship or identification may exchange Indian
cash for Nepalese currency from the general public up to the department's permitted
maximum of IC 10,000. A medical report is required in some exceptional circumstances
where you might need cash more than IC 10000, such as for medical treatment. After
withdrawing funds from the bank, you have seven days until you may buy currency
again. Posting private information and the amount paid to each person is one of the
activities in this section.
Required documents:
a) Citizenship card, passport or any other identity card
b) Medical report
c) Fill up the form.
d) Attach a photocopy of the document with the form and post the record in a file.
e) The form is approved by the concerned authority.
f) Documents are sent to counter for payment after approval.

III. Electronic Cheque Clearing (ECC) Section: ECC System offers banks and financial
institutions with an electronic medium of cheque clearing and establishes a national
payments gateway to facilitate electronic payments & financial transactions across
banks and financial institutions within the country. The ECC System offers a way to
move cheque images electronically through a secure medium, completely replacing the
 9

customary physical process of moving paper cheques between banks and clearing
houses. This has led to a significant reduction in the laborious and time-consuming
manual process of clearing cheques, assisting both banks and customers. Progress
Software is the program used to clear electronic checks. As of right now, NCHL
supports the clearing of checks in four different currencies, including Nepalese, USD,
GBP, and EUR, with presentment deadlines of 15:00, paying bank response deadlines
of 17:00, and final settlement deadlines of 15:30 for normal, regular (MICR) checks.
For express presentation there are 3 regular sessions 10:00 to 11:00 paying bank
response deadlines of 11:30, 11:00 to 12:00 paying bank response deadlines of 12:30,
and 12:00 to 1:00 00 paying bank response deadlines of 13:30. Number of express
sessions can be increased and decrease in special occasion.
a) Clearing Outward: The process of crediting the account of an entity that holds
an account with NRB is referred to as outward clearing. In this process, the user
submits cheques from commercial banks and financial organizations to be
deposited into different NRB accounts. The outward section of NRB verifies and
validates the cheques issued by other institutions. After scanning the cheques,
they are transmitted through progress software to the relevant authority. The
cheques are then forwarded to the respective banks for authorization to deposit
funds into various payee accounts maintained at NRB.
b) Clearing Inward: During the process of inward clearing, when an electronically
provided cheque is verified and accepted, funds are transferred from the
organization's account at NRB. This process involves scanning and delivering
the NRB cheque, provided at other financial institutions, through the use of
progress software. It is important to note that the original cheques are still held
by the banking institutions involved. The cheques undergo verification and
approval, and if approved, they are sent to Manual CFI. Both accepted and
rejected cheques from Manual CFI are forwarded to financial clearing along
with a reason for rejection. Subsequently, the cheques proceed to Clearing
Approval, where they are checked for sufficient balance and valid signatures
before being transferred to NCHL for the final clearing process, which facilitates
electronic payment.
c) Final Settlement: As per the information provided by NCHL, the final settlement
in the clearing process involves the transfer of funds by debiting or crediting the
accounts of government organizations and financial institutions. The ECC
 10

department is responsible for this final settlement and publishes the relevant data
to the system, having received it before 3 PM. The ECC department in Baluwatar
acts as the central hub for cheque clearing and maintains NRB's parking account,
thus facilitating the settlement of accounts for all NRB branches.
IV. Government Account Section: Recording, evaluating, categorizing, summing up,
communicating, and comprehending financial data about the government in aggregate
and detail reflecting transaction and other economic events involving the receipt,
spending, transfer, practicality, and disposition of assets is the responsibility of the
government accounting department.
V. Bills Section: Connect IPS is used to transfer the amount required to the staff of NRB.
GL posting is done in the Olympic system and Olympus system which are mainly used
as central bank system. Every transaction within banking department is done through
Bill section. Budget is divided for various activities within the banking department such
as Salary for the staff, Money for Medical treatment of staff, program costs, etc. Every
transaction goes through every hierarchal step to the executive director based on the
amount of the transaction.
VI. Refinance Section: The refinance function of a central bank involves providing
financial support and liquidity to banks and financial institutions within the country's
financial system. When banks face liquidity shortages or need additional funds to meet
their reserve requirements, they can seek refinancing from the central bank. The central
bank may offer refinancing facilities such as loans or advances to eligible banks at
predetermined interest rates. By providing this liquidity support, the central bank aims
to ensure the stability and smooth functioning of the financial system. Refinancing helps
banks meet their short-term funding needs, maintain adequate liquidity levels, and
continue providing credit to individuals, businesses, and other sectors of the economy.
Additionally, the central bank's refinancing activities contribute to influencing and
managing the overall money supply and interest rates in the economy.
VII. Ledger Section: The department is involved in assisting the staff in retrieving the
pension books from pension holders and ensuring that the holders have signed them. It
also included accepting "Manjurinama" letters from pension holders who couldn't be
present due to unavoidable circumstances. Furthermore, required posting pension data
on the Olympic software for customers whose pension had been deposited in their
accounts. It involved completing the pension record in the pension book and affixing
the NRB stamp after the information had been posted and sent for review. Additionally,
 11

this section is also responsible for,

a) Signature cards provide and update signature of government and private
institution (account holders in NRB)
b) Transfer money as per the request of account holder
c) Accepts “dharauti” through voucher and cheques.
d) Transfer interest of government bond
e) Collect the interest of OLF (Orderly Liquidation Fund) from banks.
f) Block cheques in case of lost or damage
g) Provide bank statements for audit and reconciliation purpose.
VIII. Internal Administration Section: The internal administration department of a banking
department is responsible for managing and overseeing various administrative functions
within the department. This includes handling personnel matters such as employee
recruitment, onboarding, and HR-related activities. They may also be responsible for
maintaining employee records, managing employee benefits and payroll, and
coordinating training and development programs. In addition, the internal
administration department handles office management tasks, ensuring the smooth
operation of the department's facilities and infrastructure. They may oversee the
procurement and inventory of office supplies, manage office equipment and technology,
and coordinate maintenance and repairs.
IX. LC Section: The LC (Letter of Credit) section in the banking industry is responsible for
managing and facilitating international trade transactions involving letters of credit.
Letters of credit are financial instruments used by importers and exporters to ensure
payment and guarantee the fulfillment of contractual obligations in cross-border trade.
The LC section handles the issuance, amendment, and settlement of letters of
credit on behalf of the bank's clients. They work closely with importers, exporters, and
other parties involved in the transaction to ensure smooth and secure transactions.
X. Foreign Exchange Section: The Foreign Exchange Section, also referred to as the
agency section, is responsible for various tasks within the banking department. These
include preparing vouchers for currency exchange transactions other than IC,
conducting SWIFT transactions, and collaborating closely with other sections within
the department.
 12

2.3 Analysis of Works and Activities Performed

The internship began on the 32ndJestha, 2080 and ended on the 30thShrawan, 2080,
lasting two months. During this intensive experience, I was allocated to five various
divisions inside the organization: the Internal Administration Section, the Ledger Section,
the IC Section, the ECC Section, and the Government Accounting Section. The different
leaders of each area assigned responsibilities and offered attentive monitoring, ensuring
that I received important direction and assistance.
I. Internal Administration Section
a) Filing of document
b) Printing and photocopy of document
c) Serving staffs when in need
d) Observe IMS entries.
e) Signatures of different level of employees as per the need
II. Government Accounting Section
a) Receiving mails from the commercial banks regarding the daily government
revenue and expenditure (Sa.ka.fa. 1)
b) Sa ka 2, Sa.ka 5 and Sa.ka 6’s data entered.
c) Posting the excel file in the NRB software and checking the transaction balance.
d) Scan the physical papers to store it digitally
e) Make sure signature of all the officers according to the amount in system
generated voucher
f) Assist staffs while required
III. IC Section
a) Customer's name: The intern recorded the full name of the customer who
wanted to exchange for Indian currency.
b) Passport number or citizenship number or Rastriya Parichay Patra number: The
intern documented the passport number or citizenship number of the customer
as per the provided identification.
c) Employee code (if applicable): If the customer was an employee of Nepal
Rastra Bank (NRB), the intern noted their employee code for identification
purposes.
d) Contact number: The intern collected the customer's contact number, enabling
communication and follow-up if needed.
 13

e) Amount to be exchanged: As specified on the Indian Currency exchange form,

the intern recorded the desired amount of Indian currency the customer intended
to obtain.
f) Also make sure the signature of respective officer as an approval to exchange
currency
g) Entry of following data in excel sheet before they go to exchange counter
h) Cross check the amount in total at the end of every day
i) Print and file the excel sheet regularly.
IV. Electronic Cheque Clearing (ECC)
In this department following task are performed:
1. Filing & Posting: It includes filing and posting vouchers presented in
ECC department for clearing.
2. Observations in following processes are as follows:
a) Clearing Inward
i. Technical clearing of regular NRB cheques to verify
cheque date, amount, figures in words, stamp of payee
and drawer, endorsement and presentment with date
ii. Clearing approval of cheques for approval for payment
to presenting members.
iii. Rejecting the cheques with reasons specified.
b) Clearing Outward
i. Verifying the received physical cheques of other institution.
(cheque date, amount, signature, stamp)
ii. Bank ECC stamp and endorsement stamp were to be put in once
the cheque was verified.
iii. Scan the cheque and input the data such as account no, branch
no, amount, date in the Software.
iv. Send the scanned cheques (by ECC machine) and send them to
the concerned institution for clearing.
v. Check whether the cheques are approved or not, if not correct the
mistake and send again.

3. Perform the tasks provided by staff members.

 14

V. Ledger Section
a) Verify the voucher for Dharauti and other transfers.
b) Filing the voucher, cheque payments, letters etc.
c) Provide the essential documents accordingly.
d) Customers handling during rush hours.
e) Make new files after the end of Financial Year
f) Make sure and the essential officer’s signature according to the amount of
payment, and transfer.
g) Observe staffs performing tasks such as bank statement print, pension amount
transfer, transfer government revenue, signature card update, block cheques etc. all in
Olympic banking system

VI. Remittance Section

1. Volunteering: Individuals dedicate their time and skills to support various tasks.
Involves activities such as data entry, documentation, and customer assistance.
2. Communicate with Customers: Engage with customers directly and provide
necessary information and guide them through the foreign currency exchange
process.
3. Giving answers to Customer Queries: Address customer inquiries promptly and
accurately. Provide information about fees, exchange rates, and other concerns.
4. Making Vouchers for Foreign Currency Exchange: Creation of vouchers to facilitate
conversion of local currency to foreign currency. Ensures compliance with
regulations and accurate record-keeping for transparent transactions.
5. Filing: Organize and maintain physical files and documents of remittance and
foreign currency transactions.
 15

Chapter III
Observational Experience and Reflection

3.1 Analysis of Process, Procedures and Challenges

The organization ran smoothly because to well-implemented organizational

procedures that made everyone on the team aware of their responsibilities. Regular
communication between the directors and staff reduced confusion and frustration and
increased effectiveness and efficiency. In the first week of the internship, it was difficult
to understand the tasks and banking procedures. The intern was told by the relevant
directors and deputy directors to report to the internal administration division on the
first day and finish the assigned assignment. Following then, job rotation took place
according to the worker's requirements and adaptability. During the first week of work,
the intern's main issue was adjusting to the company culture, communication style, and
social greeting procedures.

3.2 Lessons Learnt

The internship lasted for around two months, and during that time, I was able to
study a variety of lessons. After four years in the classroom, this internship provided a
fantastic chance for an intern to experience real-life job situations, and it must be noted
that it was a wonderful learning experience. Following is a brief summary of some of
the lessons learned while working as an assistant trainee at NNRB.
I. Time Management: Time management is an additional vital skill that was
acquired and implemented during my internship tenure. Punctuality and time
management abilities were instrumental in resolving a variety of issues and
streamlining task execution. Failure to manage time correctly could lead to
an accumulation of work pressure. In addition, the intern was obligated to
attend morning classes and report to the office during designated work hours.
The intern designated specific times for specific tasks, which aided in
completing various assignments within the allotted timeframe.
II. Communication Skills: Answering the queries of customers and facilitating
them with bank services through telephone or direct contact helped me to
develop communication skills. Reporting to the NRB staff about work
progress and sharing opinions with them nurtured my communication skills.
III. Interpersonal Relationship: Through the internship, we discovered that
 16

networking and expanding one's professional circle is a vital component of

success. The intern learned that building interpersonal connections with
employees and fellow interns can expand their network, which can prove
invaluable for future career development.
IV. Leadership Skills: Assuming a leadership role amongst friends is one thing,
while taking charge of an organization as a leader is another. Leaders have
specific responsibilities and duties that they must fulfill with authoritative
power. By observing carefully chosen individuals who had risen to the
positions of head of department, directors, and deputy directors through open
competition, the intern was able to witness their leadership abilities,
qualities, and problem-solving skills. Undoubtedly, these are some of the
most talented individuals that the country has to offer, and by observing their
work, working style, and people management skills, the intern could enhance
their leadership skills simply by watching them perform.
V. Organizational Skills: Working in an organization is a demanding task, as
one must adhere to specific rules, boundaries, and culture. Complying with
such norms and ethics within the organization aided in comprehending the
organization and the tasks to be accomplished. Furthermore, these common
practices enabled interns to interact with the individuals employed there.
Hence, interns acquired organizational skills, including the ability to work,
adjust, and learn in a novel organizational culture.
 17

Chapter IV
Conclusion and Recommendation

4.1 Conclusion
The intern's experience with the internship program exceeded all expectations
in terms of its benefits. There were many chances for an intern to learn and get real-
world experience as an intern, from using different financial systems including the
Olympics financial System and central account to engaging with consumers. The intern,
who has always been captivated by the banking industry, was overjoyed to have the
opportunity to intern in a bank. The internship was completely new and gave the intern
a lot of fresh experiences. The intern saw discrepancies between theoretical
understanding and real-world implementation during the program. The intern was
exposed to a variety of work situations, issues, and solutions during their brief internship
in the banking department's ledger section, government accounting, ECC, and Store.
The eight-week internship exposed participants to the realities of the working
world and offered a unique and worthwhile experience. For me as a finance student, the
chance to intern at the Central Bank of Nepal—one of the most prestigious institutions
in the nation—was really thrilling. It gave me the opportunity to learn more about the
complexities of management and financial processes both inside the company and
throughout the economy. In retrospect, I realize that I learned a lot more from the
experience than I had imagined.
I worked at NRB's core banking department for the duration of my internship. I
learnt about the nation's foreign exchange management system and obtained insightful
knowledge of the department's operations. This encounter helped me to comprehend.

4.2. Recommendation

1. To organization

i. Use a scientific approach to filling and purchase more cabinets/racks to house all of the
files and papers, resulting in enhanced work processes and the capacity to easily retrieve
such files whenever necessary. Improper filing would also leave a negative impression
on clients and visitors to the workplace. As a result, proper filing would aid in avoiding
such a situation.
ii. The bank is having issues with its canteen. If the bank has a cafeteria, it is evident that
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it improves the efficiency and smoothness of banking activities, since employees do not
need to walk outside for lunch.

2. To College
i. The college's class calendar should be flexible. Classes till 9:30 a.m. and heading to
work at 10:00 a.m. might be exhausting.
ii. The college administration's effort for a field tour to the particular organization where
the students were completing their internship program during internship hour was well
appreciated. However, I was dissatisfied because no one showed up for the field tour
where I conducted my internship.
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References

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Alam, G. M., Parvin, M., Ayub, A. F. B. M., Kader, R., & Rahman, M. M. (2021). Does an
MBA degree advance business management skill or in fact create horizontal and
vertical mismatches? Business Process Management Journal, 27(4), 1238-1255.

Kallet, M. (2014). Think smarter: critical thinking to improve problem-solving and decision-
making skills. John Wiley & Sons.

McManus, R. M., Ward, S. J., & Perry, A. K. (Eds.). (2023). Ethical leadership: A primer.
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