Products Offered by Banks in Nepal

In Nepal, Banks are regulated by Nepal Rastra Bank (NRB), the central bank of the country which was established in 1956. The banks in Nepal are categorized under four heads namely Class A, Class B, Class C and Class D by NRB. All the commercial banks with core capital more then 2 billion are as Class A bank. Development bank are categorized as Class B, Finance companies as Class C and Micro finance as Class D.

All of the banks in Nepal are involved in retail banking. They make petty lending to individuals and corporations. The banks are strictly regulated by NRB, and there are restrictions for lending and borrowing.

The common products and services commonly offered by the banks in Nepal are:

Credit

• Corporate Banking:

Banks provides short to medium-term commercial lending, structured finance and transaction banking to meet customer’s banking requirements. Besides traditional lending, Banks also engineer tailor-made solutions to meet constantly changing needs. The credit facilities provided by Banks in Nepal are:

·       Funded Facilities

·       Overdraft Loan

·       Hypothecation Loan

·       Structured Overdraft secured against Govt. Bonds

·       Loans against government bonds

·       Loan against fixed deposit

·       Pledge Loan

·       Priority/Deprived Sector Loans

·       Trust Receipt Loan

·       Term Loan

·       Packing Credit (Export) Loan

·       Margin Lending against shares

·       Loan Against First Class Bank Guarantee

·       Hire Purchase Loans

·       Consortium Lending

• Retail Banking

Realizing the dreams may now just be a phone call away. A house of dreams, a brand new car, a great marriage, a MBA degree from the best B-School ... the list is endless. Whatever customer dreams are, it can now be realized by opting for Consumer Loans from Banks. The retail banking facility includes the following:

·       Housing Loan

·       Auto Loan

·       Education Loan

·       Loan against gold silver

Deposit

• Current Account

Everyone has different banking needs, but every business needs a bank account. Banks have tailor made Current account that rightly meets needs of today's fast-paced business. Networked branches of Bank give customer the power to transfer funds in and across cities (where Banks has its offices/branches) in a flash.

Features

·       Withdrawal Below Minimum Balance

·       Extended Banking Hours in Kathmandu Valley Branches

·       Standing Instruction

·       Cash Management

·       Free Cheque book

Limited Liability Company/Social Organization/School

·       Completed Account Opening Form

·       Board Resolution to Open and Operate the Account)

·       Certificate of Registration/Incorporation

·       Articles of Association

·       Memorandum of Association

·  Evidence of Identification of Account Operator (Citizenship/Passport/Driving License/Voter's ID)

·      Two Recent Passport Size Photographs of Account Operator(s)

Proprietorship/ Partnership Firm

·       Completed Account Opening Form

·       Certificate of Registration/Incorporation

·       Income Tax Certificate (PAN Card)

·       Partnership Deed (in case of partnership firm)

·       Evidence of Identification of Account Operator (Citizenship/Passport/Driving License/Voter's ID)

·       Two Recent Passport Size Photographs of Account Operator(s)

• Saving Account

Designed with array of features, Savings account not only ensures attractive returns to customers idle money but also makes personal banking convenient and efficient.

Features

·       Affordable Balance

·       Unlimited Withdrawals/Deposits

·       Withdrawal Below Minimum Balance

·       Extended Banking Hours in Kathmandu Valley Branches

·       Free Cheque book

Documentation

·       Completed Account Opening Form

·  Evidence of Identification of Account Operator (Citizenship/Passport/Driving License/Voter's ID)

·     Power of Attorney (If the account operator is other than the accountholder/applicant)

·      Two Recent Passport Size Photographs of Applicant/Account Operator

• Fixed Account

Tenure ranging from seven days to over two years, Fixed/Call deposit at Bank allows depositors to diversify your portfolio to best suit your investment plan.

Features

·       Attractive Interest Rate.

·       Wide Options of Tenure

·       Convenient Account Opening

·       Auto Renewal Possible

·       Loan Facility up to 90% of Deposit Amount.

Documentation

·       Completed Account Opening Form

·  Evidence of Identification of Account Operator (Citizenship/Passport/Driving License/Voter's ID)

·     Power of Attorney (If the account operator is other than the accountholder/applicant)

·      Two Recent Passport Size Photographs of Applicant/Account Operator

1.1.3       Remittance

Remitters from any part of the world can send money from any bank to an account at many banks on Nepal that provide such facility. The originating bank will send the money through one of bank's correspondent banks.

The remitter must provide the following to the sending bank:

·        Beneficiary's name

·        Beneficiary's bank account number

·        Beneficiary's branch name or address, and

·        Beneficiary's Bank