An Internship Report of Rastriya Banijya Bank

Submitted by
Shristi Shrestha
Nepal College Of Management
Kathmandu University

Submitted To
Mr Sushil Bhakta Mathema
Mr Prem Prasad Silwal
Mr Phadindra Prasad Poudel
Nepal College Of Management

In partial fulfillment of requirement of the degree of BBA of

Management, April 2020.

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 Acknowledgement
I express my gratitude towards Nepal College Of Management (NCM), Kathmandu University
and the human resource manager of Rastriya Banijya Bank for opportunity to be a part of
Rastriya Banijya Bank as an intern.

The internship program was carried out as rules and regulations of the bank mentioned by the
branch manager Mrs Srijana Bajracharya . This internship wouldnot be possible without the
guidance and support of the RBB staffs and fellow interns.

I would like to thank Nepal College of Management for their sincere support during the
internship program which help me to build of my skill and made me a confident person than i
was before. I would also like to thank the department heads for their sincere cooperation and
support during the program.

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 Abbreviations

ABBS Any Branch Banking Service

KYC Know Your Customer

ATM Automated Teller Machine

CSD Customer Service Department

ECC Electronic Cheque Clearance

IT Information Technology

RBB Rastriya Banijya Bank

NRB Nepal Rastra Bank

SWIFT The Society for Worldwide Interbank Financial Telecommunication

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Table of Contents
1. INTRODUCTION...................................................................................................................................5

1.1 Background of the study...................................................................................................................5

1.2 Objective of the study.......................................................................................................................5

1.3 Limitations of the study....................................................................................................................6

2. Description Of Internship In Rastriya Banijya Bank...............................................................................6

2.1 The concept of organization..............................................................................................................6

2.2 Internship Activities........................................................................................................................10

2.2.1 Activities performed in customer service department.............................................................10

2.2.2 Social Security Allowance.......................................................................................................14

2.2.3 Electronic Cheque Clearing (ECC).........................................................................................15

2.2.4 ATM department.....................................................................................................................16

3. LEARNINGS FROM THE INTERNSHIP............................................................................................18

4. CONCLUSION.....................................................................................................................................19

6. RECOMMENDATION.............................................................................................................21

7. REFERENCES......................................................................................................................................23

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1. INTRODUCTION
1.1 Background of the study

This report is submitted in the fulfilment of the requirements for the degree of “Bachelor of Business
Administration”. The Bachelor of Business Administration (BBA) program under the faculty of
management of Kathmandu University consists of eight semesters. As per the design of this program,
students need to complete internship report for the period of eight weeks and prepare the report for the
fulfilment of the degree. This program is part of academic program which helps the students to
promote their professional activities. Students can apply the knowledge that has been learnt in class
room to the practical field.

The report consists of knowledge and experience that students have gained in the organization. An
internship is a position, which allows a student to gain professional experience in an occupational area
they are considering. It allows any student to develop new skills in the field and offers the student
training and supervision that facilitates learning. Internship also helps to determine if the industry and
the profession is the best career to pursue. Students gain experience in national and international
platforms. This report has been presented on the basis of eight weeks’ internship at Rastriya Banijya
Bank Limited, Lagankhel starting from 12th Ashard 2076. RBB has been contributing to socio
economic development of the country for the last five decades.

Internship is an important academic requirement helping interns to acquire actual real world
experience. The internship is designed to help an intern with opportunity to relate the theoretical
knowledge that they gained with the practical scenarios. This internship program aims to provide
training and prepare students for managerial functions, to develop students interpersonal and
communication skill by encouraging them to interact with the people in the organization. Internship is
a key to learn discipline, time management, leadership skill and stress management.

1.2 Objective of the study

The main objective of the study was to gain professional experience as well as the social,
technical and communication skilla to work effectively in the industry with the exposure of

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knowledge gained by the teachers and knowledge gained within the four years bachelors
program. It helps to gain exposure to the functioning of activities in the commercial bank and
also learning to deal with the challenges faced by bank.

The specific objectives of the study are:

 To enter the real world of a financial institution.

 To gain technical and managerial skills.
 To learn how to deal with daily challenges faced by the commercial banks.
 To get professional experience of working in a financial institution.

1.3 Limitations of the study

There were certain limitations conducting this study which were:

 The bank's policy on keeping some matters confidential kept interns from analysing
various facts and issues.
 The study may not be applicable to other organizations of similar nature.
 Due to limited time period full interaction with the staffs was not possible to gain
complete information due to high occupancy.
 The report has only covered limited aspect of the system because all the departments of
the bank couldnot be accesed and it lacks professional touch.

2. Description Of Internship In Rastriya Banijya Bank

2.1 The concept of organization

Rastrya Banijya Bank is the largest commercial bank in Nepal. It is fully government owned. It was
established on January 23, 1966 (10th Magh 2022). RBB provides various banking services to a wide
range of customers including banks, insurance companies, industrial trading houses, airlines, hotels,
and many other sectors. Earlier constituted under RBB act 2021 with the full ownership of the

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government of Nepal, the Bank has been running under the Bank and Financial Institute Act (BAFIA)
and Company Act (CA) 2063 at present. This Bank is licensed by NRB as a ‘A’ class commercial bank
of the country.

It started its banking operation through 7 branches covering 7 districts and 7 zones. With its head
office located at Singhadurbar, Kathmandu, RBB has been a pioneer in Nepalese banking sector for
more than 50 years. With its line ‘Yours Own Bank’, RBB is one of the market leaders and the largest
banking sector of Nepal.

RBB provides various banking services to a wide range of customers they include elite to poor
individuals, institutional customers, and the customers from industry / business communities. RBB has
been contributing to socio economic development of the country for the last four and half decades.

RBB has many correspondent arrangements with major international banks all over the world that
facilitate trade finance, bank-originated personal funds transfers and interbank funds transfer via
SWIFT. In a bid to promote remittance business, RBB works with CG money remit. Prabhu Money
Transfer, Express Money Services Limited, Instant Cash Global Money Transfer, Ez Remit, Western
Union and International Money Express. The bank has played crucial role for the development of
financial sector i.e. bank, insurance companies through its promoter’s role. As a second commercial
bank of the country, the bank has been contributing in the trade, industry, hydropower and agricultural
sector of the country. Health and Education sector are also benefitted through its disbursement.

Mission, Vision and Objectives of the Organization

Mission is the organizations reason for its existence. Vision represents where the organization wants
to be in future and objectives are short term operating goals.

Vision:

Vision of RBB, “To provide innovative banking services to everyone, every time and everywhere for
the economic development of the nation."

Mission:

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Mission represents the purpose of the company or any organization. It is the reason behind the
existence of any business institution.

Mission of RBB, “To provide easy and innovative banking products and services for our customers by
implementing one stop service concept from our wide network using our modern technology qualified
human resources in competitive environment. We always look for the benefit of the local communities
supporting entrepreneurship, social responsibility and economic prosperity of the nation."

Organization Design and Structure

In any organization, the structure of organization is an essential factor for the smooth operation of the
organization. It is a formal, guided process for integrating the people, information and technology of the bank.
It is used to match the form of the bank as closely as possible to the purpose(s) the bank seeks to achieve. It
consists of activities such as task allocation, coordination and supervision which are directed towards the
achievement of bank’s aims. It can also be considered as the viewing glass or perspective through which
individuals see the bank and its environment.

The Board of Directors (BOD) is the head of the Rastriya Banijya Bank. They are responsible for policy
making and guidance to the management. The government nominates all board members including the
chairman. The executive power is vested in the Chief Executive Officer (CEO). He/she has the responsibility to
act as a communicator, decision maker, leader, manager and executor. He/she advises the Board of Directors,
motivates employees, and drives changes within the bank. As a manager, the CEO presides over the bank ’s day-
to-day, month-to-month, and year-to-year operations.

Structure describes the hierarchy and position within an organization. The organizational structure of RBB is
presented below:

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2.2 Internship Activities
The main objective of the internship program was to learn activities that takes place in the
banking sector everyday. RBB has different departments and work that are done in these
department are also different. Although the activities that are performed in these departments
vary from each other their work is interlinked with each other. The departments that i worked in
my 8 weeks internship program are customer service department , pension department , ECC and
ATM department. RBB uses " pumori plus lll" to carry put its activities. The departments that I
worked during my internship program are:

 Customer Service Department

 Pension Department
 Electronic Cheque Clearance
 ATM Department

2.2.1 Activities performed in customer service department

Account Opening

The main activity of the CSD is to open account of customers to do transaction in the respective
bank. It is one the most frequent activities that is done in customer service department. In order
to open account of the customers, they have to be given account opening form to fill up the
necessary information. If they dont know how to fill the form we have to assist them if
necessary. Every details must be checked carefully because people deal with money which is
important and crucial to manage by the bank. The copy of citizenship and electricity/water bill is
compulsory to open savings account. Account is opened using "pumori plus III" software.
Minimum Rs 1000 must be deposited to open a savings account. There are different types of
account that can be opened in RBB which are:

 Savings Account
 Current Account
 Mahalaxmi Account
 Staff Deposit Account

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  Pension Account
 Police Savings Account
 Chuna muna account
 Samriddhi Account

Issuing Bank Statement

Sometimes customers ask for bank statement to know their transaction in certain period or for
other financial purpose. The account holder themself has to to present to get bank statement
because it is confidential information. If customers ask for bank statement before the last date
they had taken one then Rs 100 is charged. They have to fill up their name and phone number
while taking the bank statement. The statement is printed using pumori and printer.

KYC (Know your customer) update

The old accounts of the bank may have been opened where the software were old and outdated
and necessary information was not filled up. So to update such incomplete information KYC
update is done by the staff of CSD department. KYC update has to be done every three years so
that accurate and complete information can be kept in the bank records. Customers cant do
transaction without KYC update. So KYC update form is given to the customer to fill up
necessary information. They need copy of citizenship and two pp photos for their KYC update.

Verifying account number and checking balance

It is one of the most frequent and everyday activity of CSD. Customers come daily to the bank
for various activities. If they want to withdraw amount from the bank they come to CSD to check
the balance so that they would be sure how much they can withdraw. They also come to CSD to
verify their account number to deposit cash or cheque so that there would not be any mistake and
cash can be deposited to respected person's account only.

Complaint handling

Customers come to CSD to complain about various things that they have issue about the service
of the bank. If they are not satisfied and want solution to their problem they report it to the CSD.

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Some the frequent complains that are reported are ATM machine not working, amout deducted
but not transferred, mobile banking issues e.t.c. So to handle the complains about these issues a
dispute form is given to the customers so that their problems can be solved.

Distributing cheques

Almost everyday customers come to CSD to make their cheque. The customers have to be
present themself to receive the cheque. If they have new account then the cheque is made
immediately but if they have old cheque they have to fill the requisition slip inside the old
cheque. After they have filled the slip the sign must be verified so that the authorize person only
can get the cheque. If the cheque is of other branch then Rs 100 id charged if the slip is available,
if not then Rs 300 is charged. It is free for making cgeque in the same branch if the slip is
available but if not then RS 200 is charged.

Screening and Populate

After opening the the account of the new customers screening of the account must be done so
that it can be populated later. Screening and populate is done in the RBB's intranet " Trust AML"
is used to fill up the information the customers. It is necessary to populate so that any brancg can
access the information of the customer. The screening ID and KYC ID is obtained after
screening and populating and it must be recorded.

Activating mobile banking and ATM request

Customers fill up the forms for registering their mobile banking service and ATM request form.
In RBB, Lagankhel, I learnt to register new mobile banking service for thw customers and do
modification if necessary like change their phone number , reset their pin, unblock their service
etc. RBB uses " Bank Smart" to register the new mobile banking service and other mobile
banking requests. And to register, renew and block the ATM service, " Card Management

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System" available in RBB's intranet is used to register new ATM request and carry out necesary
tasks related with ATM service.

Assisting customers to fill up their cheques,vouchers and other forms

CSD deals with assisting and helping customers. Assisting customers to fill the vouchers and
cheques is one of the common work of CSD. To fill up the cheque , first date must be written
then name , amount in words and in figure. The authorized signature must be done by the
customers themself and phone number must be written at the back. To fill up the voucher, name
of the account holder and account number must be written, the necesaary information of the cash
must be written then the information of depositor must be written too.

Account Closing

While account opening is the crucial part of CSD account closing is also handled by CSD. In
order to close the account the customer fill up the account closing form. He/she must have the
original citizenship ceritificate, atm card( if taken) and cheque that they have to return to the
bank while closing the account. After attaching all these documents they are sent to branch
manager to close the account.

Recording and Keeping Files

Record must be kept of every type of account opening in a register. The account closing file must
also be kept and recorded in a register. There are different register for different types of account
to record if any new account opened. The files of new account opening form must be kept in
storeroom serial wise i.e account number wise. KYC forms are also filed later at the end of the
day so it can be accessd easily when needed.

Signatute Card Scanning and Attaching

The signature card is very important for financial transactiom because the signature is checked
for every banking activities like cheque deposit , withdrawal , etc. So without signature card
attachment the signature cannot be verified. So after opening the account or updating the KYC ,
the signature card must the scanned and attached to the customers profile so that the signature
can be verified everytime the customer wants to fo transaction.

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Scanning KYC form and mailing

The KYC update form can be available from any branch of RBB whether or not they have open
account in that branch or not. But the KYC form must be sent to the respective branch for the
update. For that all KYC form must be scanned and kept under a folder which is mailed to the
respective bank where the customer has opened account for KYC update.

2.2.2 Social Security Allowance

Social security system is government program aimed at providing basic needs to citizens who are retired,
unemployed, or unemployable due to a disability or disadvantage. It is funded usually by mandatory payroll
contributions (typically 5 to 8 percent of a pay check) from both the employees and the employers, and from the
government’s tax revenue.

Rastriya Banijya Bank, Lagankhel branch has only one social security allowance i.e pension. Government of
Nepal has provision of giving some amount to the retired government job holders of Nepal. The amount of
pension is different to various ex job holders. They may be ex army or other employee of government job.

The pension "patta" must be renewed evert 6 months to get regular pension. The pension is provided at the
beginning of the month. Pension management is used inside RBB's intranet to renew and post the pension. To
renew their pension patta they have to fill a small form. To post amount in their respective account the amount
must be debited from government acoount then credited to customers account.

2.2.3 Electronic Cheque Clearing (ECC)

Rastriya Banijya Bank facilitates Electronic cheque clearing system in this branch. ECC system an
interbank cheque clearing solution. The operating rules will help the members to perform their daily

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cheque clearing operation using ECC safely and efficiently, the operating rules in this document are
based in the rule book issued by the NRB. Modernizing the banking sector in Nepal is an essential
strategic objective that NRB seeks to realize by implementing an advanced cheque clearing solution
that manages the daily cheque clearing cycle electronically. ECC is the state-of –the art interbank
cheque clearing solution that has replaced the manual cheque clearing solution in Nepal. It is an image
– based, cost – effective, cheque clearing and settlement solution, where the original paper cheque are
transferred to scanned images in order to be presented electronically through the secured
communication channels from the member in which they are deposited to the member on which they
are drawn resulting in a faster access to funds, lower transportation expenses and increased cheque
trust. ECC calculates the multilateral net clearing position and sends to the settlement system of NRB
for settlement of the net clearing position of the direct member.

Electronic Cheque Clearing (ECC) is an image based cost effective MICR cheque processing &
settlement solution where an original paper cheque is converted into an image for electronic
processing for cheque transaction. It is done basically to make customers easy. They do have to sit in
line to take out cash from one bank and deposit into another. They can simply deposit cheque of other
bank into RBB's account.

The customer at first will come with their cheque and deposit slip , so we have to make sure that the
cheque number and person's name is correct. If the amount is of more than 1 lakh the stamp of account
payee must be put in that cheque. If the cheque is of organization writing ac payee is compulsion.

There are two types of clearance i.e express and normal. Express time is upto 12 pm and normal is
upto 4. The reply of express comes within a day but charge is taken from the customers. After thar we
have to do posting of the amount into RBB's account using pumori software using multiple
transaction. Charges also must be deducted from the customers account for clearance.

Inward Remmitance

While fax is received then the inward remittance operation is performed. If the fund is
transferred from the other branch to this branch then that is known as inward remittance. After
the fax is received then according to the received information the payment is done either by
credited to the receiver’s account or in cash to the receiver by verifying citizenship card or any
other identification card.

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For this purpose the commission is not charged because the commission is already paid by the
sender to its respective branch while transferring the fund. Thus the receiver is only to bring the
citizenship card or any other identification card for collection of the remitted amount.

The activities performed during this operation are as follows:

 Made inward pay order and printed it out when fax is received from other branches.
 Verified the pay order and signed it after verification.
 If the order is to deposit into the account then deposited in the respective account.
 If the order is to pay to person with given citizenship number or the passport number or
the license number, etc only after verifying the receiver’s citizenship number or the
passport number or the license number; provided the pay order after which the person
goes to payment section and receive the listed cash amount in the pay order.
 Entered the pay order information into the ledger.

2.2.4 ATM department

ATM deparment in lagankhel is inside administration department in Lagankhel branch. The
ATM cards are kept inside a tin box according to the serial number. All the ATM cards record
are kept in an excel file in the computer system. If a customer comes to receive their ATM card
their account number is asked first then it is searched in the excel file. If the ATM card is ready
then we can find the account number in that record if not then we cant find. After checking the
serial number in the excel file we search for ATM card and before giving we ask the customers
to fill up information in registration file so that we can verify their signature using signature card
in pumori. Then we go to Card Management System to mark pin and card delivered. After that
we ask the customer to go to IT department for ATM activation.

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3. LEARNINGS FROM THE INTERNSHIP
Service sector is one of the flourishing sector in this era. Banking industry has been growing
rapidly from past few decades in international scenarios and in developing countries like Nepal
as well. People have now understood the importance of loan and deposit. They take loan and
invest in productive sector that yields more returns. As Rastriya Banijya Bank is a government
owned commercial bank , it is less riskier than private banks so it has now become the first
choice of customers .

Lessons Learnt

It was great opportunity to be part of Rastriya Banijya Bank. I learnt various skills and got
knowledge of different departments. Some of the lessons that i learnt are given below:

Complain Handling:

 Appreciate and thank customers for sharing their greivances and problems.
 Apologise for the error or problems that occured.
 Maintain eye contact with the customers so that they will know that we care for their
problems
 Listen to the problem with interest and nod tim to time
 Show empathy to the customers
 Try to solve problem immediately if its in your control
 Follow up the customer to know if the problem has been resolved
 Dont take complains personally.

Other lessons learnt:

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  Experienced real life working environment which were different from theories.
 Learnt to manage time and be punctual.
 Tolerance and patience level leveled up.
 Learnt how to use "pumori" software for basic banking activities
 Learnt to be responsible towards the work and be accountable.
 Learnt how do deal with different types of customers.
 Learnt to speak, function and work in corporate way.
 Importance of effective communication in the job place
 Learnt to use supporting device lile scanner, printer and xerox machine.
 Learnt the importance of information technology in banking sector.
 Every customers are different in many ways so to the way of providing service must also
be different
 Learnt that office etiquette is important part of work life.
 Unprofessional behaviour like chatting with other staffs , eating during office hours etc
makes bad impressions to the customers.

4. CONCLUSION
Internship has been incorporated as an integral part of BBA program, which provides student an
opportunity to familiarize with organizational culture and learn managerial skills exposing
oneself to the real life functions of the business organization. The internship period is an exciting
phase of a student’s life. It is the grooming period every professional need and simply because
one is not an actual member of an organization does not mean that one can ignore their duties. It
is not just a requirement to pass exams and get a degree, but it is a period where one builds
professional contacts, learns the art of listening and observing.

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During the period of internship, interns got an opportunity to be familiar with the external
environment and also analyse the activities that are performed in real life scenario. The
internship has been proven fruitful to interns in many ways. It has contributed a lot in grooming
their skills. The skills can be the interpersonal skills, social skills, academic skills etc. Interns
came in contact with the real working environment and they also analysed how the activities are
to be performed in an organisation.

It was a great experience being an intern in Rastriya Banijya Bank Ltd. Intern had a lot of
opportunities to learn about different aspects of the banking sector. The banking industry is one
of the most important industries in the economy as it enhances the economic activities of the
country. Intern got to know about the functioning technique of the banking sector. The various
departments of the bank and their connection were also identified during the period of internship.

After preparing this report, it has been concluded that the internship program conducted as the
partial fulfilment of requirement for BBA program has been worthwhile in achieving its
objectives of providing the practical application of the theoretical knowledge. The theoretical
knowledge interns gained in classroom is not enough to groom their skills and hence the
internship program has been proven as important for all of them

6. RECOMMENDATION
RBB is one of the commercial bank of Nepal. Although it provides best customer service and
lower interest on loan , it should not forget that there are other fishes in the tank as well which
means that there are other banks that customers can switch if they do not get appropriate service .

Some of the suggestions for RBB are given below:

 There there are many other financial institutions in Nepal which increases the level of
competition. So to survive in that competitive environment RBB should install new
technologies and modern software to keep up with the changing environment.
 As the Lagankhel branch of RBB donot have token system which makes the bank look
overcrowded so it should install a token system.

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 The staffs of RBB must wear formal clothes so that they will look professional in the
organization and people will take them seriously.
 Employee appraisal system must be developed so that the evaluation can be done and
rewards can be granted to hardworking employees.
 As I could see the act of nepotism and biasness im the organization which demotivates
employees to do their best, it should be strictly prohibited.
 As it was difficult to find old files in the storage room because no proper system of file
keeping was there , the files must be managed date wise and the storage capacity must be
expanded so that we can access file easily.
 The employees must be trained to use computer software than basic skills because all
important works are done through computer.
 Staffs must be hired and trained for their communication skill because some staffs
couldnot talk politely and nicely with the customers.
 Interns must be given knowledge of different departments rather than keeping them in a
particular department only.
 As i could see less staffs in the bank and more interns doing the work, I think they should
recruit more staffs with experience and knowledge then making interns do most of the
work.
 Special customers desk must be kept because all customers are not educated they need
special help of staff to carry out banking transaction.

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7. REFERENCES
1. https://www.academia.edu/32445170/Internship_report_on_RBB
2. https://www.rbb.com.np/index.php

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