FINANCIAL MANAGEMENT DEPARTMENT

OF

NEPAL RASTRA BANK

AN INTERNSHIP REPORT

Submitted To:
Office of Dean
Faculty of Business and Accountancy
Lincoln University College, Malaysia

Submitted By:
Pratibha Subedi
LC Registration No.: LC00021000898
National College of Management & Technical Science (NCMT)

In the partial fulfillment of the requirement for the degree of

Masters of Business Administration (MBA)

Kathmandu, Nepal

February, 2025

i
 DECLARATION FROM STUDENT

I hereby declare that the internship report entitled as “Financial Management

Department of Nepal Rastra Bank” under the guidance of “Dr. Sanjeev Pradhan”,
Lecturer of National College of Management & Technical Science, Faculty of
Management, Lincoln University is submitted by me in partial fulfillment of the
requirement for the degree of Masters of Business Administration is my original
work and has not been published anywhere else. Also, due acknowledgements have
been made to the materials used in the report. I declare that the facts given above are
genuine to the best of my knowledge and belief.

…………………………………

Pratibha Subedi

LC Registration No. LC00021000898

ii
INTERNSHIP COMPLETION LETTER

iii
 CERTIFICATE FROM SUPERVISOR

This is to certify that the report entitled “Financial Management Department of

Nepal Rastra Bank” is an academic work done by Pratibha Subedi submitted in the
partial fulfillment of the requirement for the degree of Masters of Business
Administration (MBA) under my supervision and guidance. To the best of my
knowledge, the information presented by her in this intern report is fact and hasn't
been submitted earlier.

...............................

Dr. Sanjeev Pradhan

February, 2025

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APPROVAL /RECOMMENDATION

v
 ACKNOWLEDGEMENTS

This internship report is the result of continuous effort and extended support of many
individuals and I am extremely fortunate to get all this along in its completion. My
sincere gratitude and appreciation goes to all those who has helped to complete the
report.

Firstly, I would like to thank Lincoln University for designing a platform where we
students can apply theoretical learning in real-life organizational and professional
activity. With the due respect and gratitude, I would like to offer my
acknowledgement to Mr. Mukunda Chhetri, Executive Director of Financial
Management department for providing me this internship opportunity in Nepal Rastra
Bank and I would like to thank my supervisor MR. Shiva Nath Yogi, Assistant
Director for his immense support towards me during the period of my internship.

Eventually, I would like to pay heartwarming thanks to my family, all the teachers of
NCMT, my colleagues, friends and especially, all the staffs of Financial Management
Department for providing me proper guidelines and valuable suggestion throughout
the internship period and answering all my queries without hesitation despite their
busy schedule.

…………………………………

Pratibha Subedi

LC Registration No. LC00021000898

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 TABLE OF CONTENTS

cover Page.......................................................................................................................i
Declaration From Student................................................................................ii

Internship Completion Letter...........................................................................iii

certificate from supervisor…………………………………………………..
………...iv
Approval /Recommendation...........................................................................................v
Acknowledgements.........................................................................................vi

Table Of Contents.........................................................................................vii

List Of Tables................................................................................................ix
List Of Figures...............................................................................................................x
Abbreviations................................................................................................................xi
CHAPTER I: INTRODUCTION
1.1 Background of the study..........................................................................1
1.2 Objectives of the Study............................................................................2
1.3 Significance of Study...............................................................................2
1.4 Methodology............................................................................................2
1.4.1 Organization Selection......................................................................................3
1.4.2 Placement..........................................................................................................3
1.4.3 Duration of Internship....................................................................................4
1.4.4 Nature and Sources of Data...........................................................................4
1.4.5 Activities...........................................................................................................4
1.5 Limitations of the Study.......................................................................................5

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 1.6 Structure of the report..........................................................................................5
CHAPTER II: INTRODUCTION OF THE BANKING INDUSTRY
2.1 Meaning of Bank..................................................................................................7
2.2 Evolution of Banking Industry in World..............................................................8
2.3 Evolution of banking industry in Nepal...............................................................8
2.4 Types of Bank and Financial institution in Nepal..............................................10
2.5 Current Scenario of Banking Industry in Nepal.................................................12
2.6 SWOT Analysis of Banking Industry................................................................13
CHAPTER III: INTRODUCTION TO THE ORGANIZATION
3.1 Background........................................................................................................16
3.2 Brief History of Organization............................................................................16
3.3 Organization Vision, Mission, Objectives and Function...................................17
3.4 Branches.............................................................................................................18
3.5 Organizational Structure of Bank.......................................................................18
3.5. 1 Board of directors, management committee, and audit committee.............20
3.5.2 Departments, divisions and units in NRB....................................................21
3.6 Product...............................................................................................................22
3.7 Organizational Performance/Organizational Financial Position........................23
3.7.1 Organizational Performance........................................................................23
CHAPTER IV: ANALYSIS OF ACTIVITIES UNDERTAKEN AND
PROBLEM SOLVED
4.1 Financial Management Department and its Major Functions............................27
4.2 Activities Performed in NRB.............................................................................29
4.3 Problems Identified and solved..........................................................................32
4.4 Observation Gap.................................................................................................33
CHAPTER V: CONCLUSION, LESSON LEARNED AND
RECOMMENDATION
5.1 Conclusion..........................................................................................................35
5.2 Lesson Learnt.....................................................................................................35
5.3 Recommendation................................................................................................36
5.3.1 Feedback to the organization.......................................................................36
5.3.2 Feedback to the college/ University.............................................................37

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References...................................................................................................39

LIST OF TABLES

Table 1: list of banks and financial institutions…………………………………….11

Table 2: Branches of Central Bank…………………………………….……….…..18

Table 3: composition of Board of Directors………………………………...………20

Table 4: composition of Management Committee………….……....………………20

Table 5: composition of Audit Committee……..……………….…………….….…21

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 LIST OF FIGURES

Figure 1: Structure of report.................................................................................6

Figure 2: Organization structure…………………………………………………19

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 ABBREVIATIONS

ACU: Asian Clearing Union

BFI: Bank and Financial Institution

LOLR: Lender of the Last Report

MBA: Masters of Business Administration

NCMT: National College of Management and Technical Science

NIFRA: Nepal Infrastructure Bank Limited

NRB: Nepal Rastra Bank

SLF: Standing Liquid Facility

SWOT: Strengths, Weakness, Opportunities and Threats

T-Bills: Treasury Bills

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 CHAPTER I:

INTRODUCTION

1.1 Background of the study

Internship program is a mandatory program directed for Masters of Business
Administration (MBA) students under the Faculty of Management of Lincoln
University. MBA is two years course which consists of four semesters where Students
are required to spend 8 weeks in organization. The management internship was
carried out for the partial fulfillment of the Masters of Business Administration
(MBA) program under Lincoln University. Internship is the process of working as an
assistant or a trainee to gain practical experience in an organization. Internship is an
opportunity to expose the students to the actual working environment and to observe,
learn and understand the corporate culture. An intern is someone who works in a
temporary position with an emphasis on on-the-job training. Internships are
arrangements in which college students lend their talents to companies in return for an
opportunity to develop business skills and gain exposure to real work settings.
Internships provide the intern an opportunity to understand how the knowledge
acquired through the formal classroom’s discussion session is applied in the real
working situations. This report provides information about the details of the work that
was learnt at Nepal Rastra bank and also helps to understand and analyze the different
activities that are carried out at Financial Management Department.

Financial management department is formed with a prime objective of ensuring

effective financial planning, budgeting, reporting, analysis, and risk management
within NRB. The department's primary objective is to ensure the optimal utilization of
financial resources while maintaining transparency, accountability, and adherence to
regulatory standards.

This study helps the students to be acquainted with the working environment before
they actually start working in any organization. The program helps the student to
identify their field of interest and also career they would wish to practice. This report
is prepared on the basis of the experiences and observation at Nepal Rastra Bank.

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1.2 Objectives of the Study
The major objective of internship is to develop skills of the internee through the
application of the theory to practical and professional work situations. However, the
main objectives of the internship program are:

 To observe and gain first-hand experience on real way of performing job in Nepal
Rastra Bank under Financial Management Department.
 To explore the how financial management department, operate and perform its
function in Nepal Rastra Bank.
 To identify the professional working culture of various units in Financial
Management Department of Nepal Rastra Bank.

1.3 Significance of Study

Internship enables students to work side by side with personnel to get fundamental
hands-on experience and link educational and theoretical practices. The internship is
significant because:
 It helps interns to achieve hands on experience of various activities perform in the
office environment.
 It allows interns to develop and demonstrate dependability, initiative,
resourcefulness, and professionalism in the tasks assigned to them.
 It serves as a platform for interns to connect and broaden their professional and
organizational network, which can be beneficial in their future careers.
 It provides a great addition to intern’s resume thereby enhance their chances to
pursue the particular career of their interest.

1.4 Methodology
Research methodology is concerned with various method and technology used in the
process of preparing report. This study is mostly descriptive in nature where the fact
and findings are prescribed in the systematic manners. Therefore, descriptive
approach was followed to collect the needed information and the tools used under this
method are:

Observation: The internee observed the actions and gained the information on how
something works and how it can be done in the department.

2
Personal Interaction: The internee interacted with the staffs working in different
units of the department in order to understand the work flow and problem-solving
techniques.
NRB Website: All the current affairs regarding the activities of NRB along with the
information on organization structure were accessed through the website of Nepal
Rastra Bank.
Publication Materials: The working papers and others published books available in
the publication department of NRB were referred throughout the internship project.
The following represents the methodology of the study:

1.4.1 Organization Selection

As a student with a focus in finance, intern's preference for an internship was with a
financial institution, particularly a regulatory institution of Bank and Financial
Institution, to put theoretical knowledge into practice in better way. The intern
proceeded through the process of gathering information about several regulatory
institution before joining Nepal Rastra Bank at the central office. Finally, the intern
was interested in learning about the working environment and atmosphere of Nepal
Rastra Bank (NRB), the Central Bank of Nepal. Considering NRB was a wise
decision because the intern found the workers to be very cooperative and kind,
allowing to learn a lot more about the bank. There were procedures to be followed to
be intern there. The CV along with the application and recommendation letter from
the college was to be dropped to the HR department in the head office of NRB
situated at Baluwatar. As per the rule, the intern was called to sign the commitment
letter and then allowed to work in the head office.

1.4.2 Placement
Concerning the place, the intern was assigned to the financial management
department for the duration of the internship. During the internship period, intern was
placed internal administration, pension fund unit, retirement fund unit, travel and
procurement unit, employee's expenses unit, balance sheet unit and employee’s
benefit unit in NRB. Moreover, intern was provided with an opportunity to work in
each unit separately as per the work requirement. Getting involved in rastra bank as
an intern, helped intern to learn about regulatory and authority of Central Bank of
Nepal. Through proper guidance by the supervisors’ of NRB interns was able to learn

3
more about organization culture, organization environment and working procedure of
the various units.

1.4.3 Duration of Internship

The entire duration of internship program was of eight weeks as defined by the
university. Internee had to involve in day to day activities in regular working hours
from 10:00 AM to 5:00 PM except Friday, on Friday it was from 10:00 AM to 1:30
PM in financial management department. With regard to the requirement, the internee
joined the organization dated 17th December 2024 to 18th February 2025.

1.4.4 Nature and Sources of Data

This report has been basically prepared on the basis of eight weeks internship work in
financial management department of Nepal Rastra Bank. In order to collect the
necessary data following primary and secondary sources have been used for the study.

Primary Sources
Primary data are the first-hand data. The necessary information was collected from:
 Day to day observation of work activities.
 Observation of client issues and problem
 Files, registers, computer data.
 Instructions of the supervisors.
 Discussions, interactions and enquiry with the NRB staffs.
Secondary Sources
Secondary data are collected from the published sources.

 NRB’s website
 Publication and journals (Financial Minimire, and Unified Directive 2080 and
2081, Monetary policy Quarterly review 2080/81)
 Newspapers outlets (NRB bulletins)
 Annual Report

1.4.5 Activities
Throughout an 8-week internship at NRB's Office of the Finance, the intern learned
and executed a variety of duties instructed by the supervisors. The activities that the
intern undertook throughout the internship period include:

 Preparation of employee’s Tax certificate of specific fiscal year

 Preparation of employee’s Income certificate of specific fiscal year

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 Pension renewal of retired employees
 Pensioner account verification/update
 Travel entry
 Procurement entry
 Balance sheet format
 Visit to Rastriya Beema Sanstha to transfer premium policy of employees
 Visit Nepal bank limited to transfer tax and revenue collection files
 Scanning and filing documents
 File finding and transferring to different departments

1.5 Limitations of the Study

The following are the major limitations of the study:

 Eight weeks of time for internship is not sufficient for the overall understanding of
the organization.
 The report cannot be generalized to entire NRB since data is only related to
financial management of NRB.
 Despite the sincere effort and willingness, the bank staffs could not provide as
much help as required by the intern for the report preparation due to their busy
schedule and work load.
 Due to the privacy policy maintained in the organization there is restricted access
to higher level information which pressed a limit on the scope of study.
 Most of the information is collected through personal experience and observation,
thus the overall information may not be presented.
 Being a student lack of technical knowledge in the respective field was another
factor which limits the report.

1.6 Structure of the report

This study has been divided into a five-chapters. Each chapter of the study is
shown in figure below:
Chapter first deals with introduction that consist of background, Objectives of the
Study, significance of study, methodology, and limitations of the Study. It provides
overview of what to expect from the report.

5
 Introduction

Introduction to
industry

Introduction to
organization

Analysis of activities
undertaken and
problem solved

Conclusion, lesson
learned and
suggestions

Figure 1: structure offiF

report

Chapter two consists of a detailed explanation of the banking industry. It includes the
Meaning of Banks, History of Banks and Historical development of Banks in Nepal.
similarly, chapter three gives a brief Overview of the Organization where internship
was carried out. It includes the introduction, Mission and Objectives of Nepal Rastra
Bank (NRB). fourth chapter contains the basic details of the departments, explanation
of the operational activities of Nepal Rastra Bank. It also includes the activities done
by the intern, problems faced and solved by the intern. fifth and last chapter of this
report includes Conclusion that consists of the Summary of the entire report,
recommendations and Lessons Learned during the period of internship.

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 CHAPTER II:

INTRODUCTION OF THE BANKING INDUSTRY

2.1 Meaning of Bank

The term bank is either derived from Italian word banca; or from a French word
banque; both mean a bench or money exchange table. In older days, European money
lenders or money changers used to display coins of different counties in big quantity
on benches or tables for the purpose of lending or exchanging. Though the term bank
is derived at the time of existence of coins, their origin is way behind that. In the
ancient world, the history of bank begins with merchants and farmers; farmers need
crops to grow and are provided by merchants, in return back farmers’ gives ready
food items to merchants. This began around 2000BC. Though at that time there is not
word of bank but the activities were like bank. (Gupta, 2009)

According to Nepal Rastra Bank ( 2002) “Bank is a financial institution, which

provides financial services that may be in the form of accepting deposits, advancing
loan, providing necessary technical advice, dealing over foreign currencies, remitting
funds, etc.” In same similarly, as defined by world bank, “Banks are financial
institutions that fund in the form of deposits, repayable on demand or in short notice.”
For both personal and professional purposes, banks provide a range of checking and
savings accounts. A bank may provide you with all of these benefits and many more,
whether your primary priority is saving money and earning interest on that money or
receiving additional perks like a loan and overdraft facility.
Graves (2008) states that" A bank is an establishment for the custody of money
received from or on behalf of its customer essential duty is to pay draft on is profit
areas from its use of the money left unemployed by them".
A bank provides easy payment and withdrawal facility to its customers in the form of
cheques and drafts. It also provides various banking facilities to its customers
including general utility services and agency services. It is a profit seeking institution
having service-oriented approach. (Hameed, 2012)

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2.2 Evolution of Banking Industry in World
Banking industry is one of the oldest industries of the world. Concept of banking had
started to evolve immediately after the humans were able to realize and develop
money. Money had made the human life much easier than before in barter system. But
along with that money also had created some complexities in their life. So, in order
to overcome these complexities and the difficulties that were attached with the
benefit of money the concept of banking emerged in the human mind. Earlier the
moneylenders and the landlords performed the banking activities as the informal
banks but later the activities of these people were formalized and the concept of bank
as an institution emerged. Banking means the accepting, for the purpose of lending
or investment, of deposits of money from the public, repayable on demand or
otherwise, and withdrawable by cheque, draft, order or otherwise” – According to
Section 5(b) of Banking Regulation Act, 1949. According to Trivedi, Chaudhary and
Kumar (2010) the emergence of modern banks is considered from 1157 when ‘Bank
of Venus’ was set up in Italy. Later on, ‘Bank of Barcelona’ in 1401 and ‘Bank of
Geneva’ in 1407 were set up. ‘Bank of Amsterdam’ and ‘Bank of England’ were set
up in 1694. One of the key forces behind the global economy is banking, which gives
people and corporations the necessary liquidity to make long-term investments.
Banking industry is the backbone of an economy. It is the intermediary mechanism
that is primarily responsible for the transfer of the surplus funds from the surplus
generating units in the economy to the deficit facing units. Generally, the surplus
generating units are the units such as households and individuals that generate small
amount of saving. The deficit facing units, however, are the units such as businesses,
institutions and the government which have a huge appetite for funds. There comes
the role of banking industry as intermediary. Further, banks help in uplifting the
economic condition of the county by assisting in several economic activities like:
trade, commerce, industry, agriculture, service etc.

2.3 Evolution of banking industry in Nepal

The history of banking in Nepal may be called as a component of gradual and

ordinary evolution in the financial and economic sphere in the Nepalese life. The
establishment of "kausi Toshi Khana" as banking agency during the time of King
Prithvi Narayan Shah and "Tejarath Adda" can be regarded as the initial steps in the

8
direction of start of banking development in Nepal. In context of Nepal, the
development of banks can be summarized in three phases:
Phase I: The establishment of Tejarath Addha during the tenure of Prime Minister
Ranodeep Singh in 1876 A.D. was the first step towards the institutional development
of banking in Nepal. Tejarath provided credit loans to the general public at 5 percent
interest rate on securities i.e. gold, silver and other ornaments. Its objective was to
provide credit or loans to the general public but it failed to accept deposits from them.

Phase II: During the time of Chandra Shamsher (1901-1929), credit facilities of
Tejarath were extended to some other parts of the country by opening its branches.
Later, Tejarath was replaced by the first commercial bank, Nepal Bank Limited,
established on 30th kartik 1994 B.S. Then Nepal Rastra Bank was established on 14th
Baisakh 2013 B.S. as the central bank of Nepal to supervise commercial banks. In
2013 B.S. Industrial Development Center was established and later it was converted
into Nepal Industrial development Corporation (NIDC) in 2016 B.S. As the monetary
transaction got more complicated the government established Rastriya Banijaya Bank
in 2022 B.S. Agriculture Development Bank was then established on 2024 B.S.

Phase III: To operate all commercial banks, uniformly under single act, "Commercial
Bank Act 2031" was enacted. Commercial banks deal with money exchange,
accepting deposits, advancing loans and other commercial transactions. In 2041 B.S.,
five rural development banks were established to spread banking services to both
urban and rural areas. After the reestablishment of democracy, the government has
taken liberal policy to establish joint venture of other countries. Nabil is the first joint
venture bank as Nepal Arab Bank. The footstep of this bank was followed by Nepal
Indosuez Bank and Nepal Grindlays Bank Ltd. (Thapa K. , 2022)

9
2.4 Types of Banks and Financial institution in Nepal
Banks are classified into various categories based on the function they perform. In Nepal,
basically banks are used as synonyms for commercial banks only. However, central bank,
commercial banks and development banks represent the diversity of banking business in the
country (Resa, 2011). In Nepal, following types of banks are seen:

1. Central Bank
The Nepal Rastra Bank (NRB) was established in Baisakh 14, 2013 B. S. (April 26, 1956 A. D.)
as a central bank of Nepal to supervises the banks and financial institutions (licensed by the
NRB) in Nepal and guides monetary policy. Nepal Rastra Bank was established in 1956 under
the Nepal Rastra Bank Act, 1955, to discharge the central banking responsibilities including
guiding the development of
the embryonic domestic financial sector. Since inception, there has been a significant growth in
both the number and the activities of the domestic financial institutions.
2. Commercial Bank
A Commercial bank is a type of Bank / Financial Institution that provides services such as
accepting deposits, making business loans, and offering basic investment products. Commercial
bank can also refer to a bank, or a division of a large bank, which more specifically deals with
deposit and loan services provided to corporations or large/middle-sized business – as opposed
to individual members of the public/small business – Retail banking, or Merchant banks. At
present there are 20 Commercial Bank in Nepal.
3. Development Bank
The bank which is established for the development of different sectors like industrial,
agricultural, infrastructural etc. by imitating the modern system and methodology through
financial, technical and administrative assistance is known as development bank. Development
banks in Nepal are playing vital roles for the development of economy status of Nepal. Nepal
has many nationalized and private banking. There are 17 development banks in Nepal.

4. Finance Companies
The history of financial institutions is not very old. When banking sector started carrying out
current activities of finance company, large number of finance companies was established and
they expanded at a rapid pace in the developed countries, UK and USA in 1960. In the context
of Nepal, there were few insurance companies and Karmachari Sanchaya Kosh working as
nonbanking financial institution before enactment of Finance Company Act, 2042. There are
total 17 finance companies in Nepal.

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5. Micro Finance Companies
Nepal is a land locked developing country. Most of the poor people lives in rural areas and have
little opportunity. Micro finance (Micro Credit Development Bank) could help poor people who
do not have any collateral, but willingness to work and a desire to do some business activities
from which he will acquire employment as well as income. At present there are 52 Micro Credit
Development Bank in Nepal.
6. Nepal Infrastructure Bank Limited
Infrastructure development bank (NIFRA) is the first bank and only one bank in Nepal. It is
established under the BAFIA 2073. The objective of this bank is accelerating the development
of infrastructure of the nation. NIFRA aims to bridge the infrastructure financing gap by raising
resources from domestic and international market in the form of equity, debt, structured funds
and bonds.
For the purpose of regulation NRB had divided the depository financial institutions into four
classes on the basis of minimum paid up capital requirement. This classification is unique
feature of Nepalese banking industry only and there is no such classification globally. The
Nepalese version of classification of depository financial institutions according to the Nepal
Rastra Bank and their present number, are shown in table 1.

Table 1: list of banks and financial institutions as of mid-January 2025

S. No. List of Bank and Financial Institution Total

1. Commercial bank 20
2. Development bank 17
3. Finance companies 17
4. Microfinance company 52
5. Nepal infrastructure bank limited 1

Table 1 shows the classification of bank based on the paid-up capital requirement and their total
number. For the smooth functioning of the bank NRB classified the banks of Nepal into four
categories on the basis of paid up capital requirement. The extended financial market helps in
increasing the scope and use of monetary policy instruments. Being the Central bank, it is
working for the financial stability in Nepal.

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2.5 Current Scenario of Banking Industry in Nepal
After the restoration of democracy in Nepal there has been tremendous development in
banking sector. Currently the banking sector is evolving to be very competitive and challenging.
The fastest growing and emerging industrial sector today is no other than banking. It is
flourishing and upgrading day by day. Banks are using various new technological
advancements to provide timely, fastest and economical services to the customers.(Shrestha &
M., Fundamentals of Banking, 2016)
The Nepalese banking industry is facing a mixed scenario. While some indicators show growth
in deposits and overall assets, there are also concerns about rising defaults, slower lending, and
potential liquidity issues. A key concern is the increase in non-performing loans (NPLs),
indicating a rise in loan defaults and deteriorating asset quality for banks.

 There is ongoing trend of merger by the banks which are suffering from the problem of
low capital base and limited geographical coverage. The numbers of financial institutions
are decreasing though becoming powerful.
 Credit-to-deposit (CD) ratios have decreased, indicating a slowdown in lending activity.
 Some banks have been facing challenges due to difficulties in borrowing from other
institutions and a slowdown in deposits growth.
 Deposits at banks and financial institutions (BFIs) have increased, but the growth rate has
slowed compared to the previous year.
 A wave of Initial Public Offerings (IPOs) has started among the new BFIs, but very few of
them have opted for this route.
 The banking industry has been very supportive and doing various activities to help the
victims of earthquake 25th April, 2015 which include collection of disaster relief fund.
(Nepal Banker’s Association)

2.6 SWOT Analysis of Banking Industry

As is the nature of time, industries change and adapt to the current business conditions. So too
has the banking industry. One of the oldest surviving forms of financial institution banks have
been around for a pretty long time. Banks were initially started as a place where people could
store their riches comfortably and safely. Today, banks have developed into digital entities that
offer financial services and products from the comfort of our couch. Yet, the industry still
languishes in certain respects.

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In this SWOT analysis, we are going to take a peek at the strengths and opportunities that the
banking industry can take advantage of. We’ll also look at the weaknesses that the industry
suffers from, and the threats that may seek to spend it in the near future. (Shrestha & Bhandari,
Financial Markets and Institutions, 2008)
Strengths
Online banking:
Digital or internet banking is the latest and most modern form of banking in the financial
industry. It allows people to avail themselves of various services like transferring funds, paying
bills, depositing money, or applying for a credit card without even visiting the bank.

The pandemic of covid-19, social distancing, and worldwide lockdown have amplified the
usage of digital banking. People used to consider internet banking as something an additional
feature of the bank. PayPal, Pioneer, and others are branchless banks and operating globally.
Convenience:
The competition in the banking industry has compelled bankers to get out of their comfort zone
and adopt the technology. Now, they’re working on finding newer ways to make the customers’
lives easier in order to gain a competitive edge.
Financial support:
Whenever there’s an economic, financial, or climate crisis, either the government or the people
are in desperate need of help. It’s the banking industry that provides those insurances, loans,
investment, or capital support so that they could get back on their feet again.
Economic growth
It's because of banking that we've seen such economic growth at home and worldwide. Supply
and Demand have fostered this growth and also improved financial trade, financial stability, and
financial security. It's also one factor behind increased employment and reduction of worldwide
poverty.
Oldest industry
So as long as humans have been alive, there's been forms of banking. Initially, it was a bartering
and exchange system, but now it's much more than that. Banking teaches us the value of
money, gives us access to loans to reach our dreams, and provides a host of other services
related to credit cards, saving and bonds.

Weakness
No Global Coordination:

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As we know that there’s a close link between the banking industry and the country’s economy,
and they work in collaboration. But we don’t see the same coordination at the global level.

Vulnerabilities due to old technology:

Many banks still use outdated IT infrastructure to host online services. For instance, some
banking websites don’t use case sensitive passwords or allow customers to put special
characters in passwords. Because of that, many banks suffer from digital vulnerabilities and
potential security bugs.

No access to rural areas:

Rural regions don’t have access to banking services. Part of this is because of conflicts between
government objectives and banking objectives. Another reason for the lack of access is because
providing services to rural areas can be more trouble than it’s worth financially.

Opportunities

Move into rural region:

As mentioned in the weakness section, the banking industry hasn't approached 16 rural areas
yet. It's an opportunity to get more customers, but achieving such a move isn't a small feat. It
may take some years before this approach is successful.

Offer more services:

Banks should keep up with customer demands and demographics changes. Having a banking
mobile application is not enough for customers. They want even more services to enhance their
payment system. So, the banks need to spend huge amount to do research about customer
preferences so that they can take opportunity of that.

Digital Transformation:
Rapid adoption of mobile and internet banking. Increased use of QR codes, digital wallets
(eSewa, Khalti, IME Pay), and online payment systems. Opportunity to reach unbanked
populations in remote areas through digital services.

Financial Inclusion:
Large segments of the rural population remain underbanked or unbanked. Government
initiatives and central bank policies (e.g., branchless banking, microfinance) support inclusion.
Scope for expanding microfinance and SME banking.

14
Remittance Market:
Nepal receives significant remittance inflows from abroad.
Banks can enhance remittance services and offer value-added financial products to recipients
(e.g., saving schemes, investment options).

15
 CHAPTER III:

INTRODUCTION TO THE ORGANIZATION

3.1 Background
Nepal Rastra Bank (NRB) incorporated as the Central Bank of Nepal, was established on April
26, 1956 A.D. under the Nepal Rastra Bank Act, 1955, to discharge the central banking
responsibilities including guiding the development of the embryonic domestic financial sector.
Central bank has a major task and responsibility to stabilize the economic growth and financial
system of the economy. NRB is assigned with basic tasks and responsibilities to promote the
economic welfare of the country in broader perspective. The central office is located at
Baluwatar in Kathmandu. There are 17 departments, two department level office, three
divisions and one unit established to carry out its functions. There are 8 offices outside
Kathmandu Valley located at Biratnagar, Janakpur, Birgunj, Pokhara, Siddarthanagar,
Nepalgunj, surkhet and Dhangadhi. To reflect the dynamic environment, the functions and
objectives of the Bank have been recast by the new Nepal Rastra Bank Act of 2058 (2002).

It is non- profit organization established under complete government ownership. Nepal

Government has empowered the Nepal Rastra Bank (NRB) by law to regulate, supervise and
monitor the banking sector for better economic environment. NRB usually keep an eye on the
commercial banking system of a country and acts as a banker, advisor, the lender of the last
resort and financial agent of Government of Nepal. It plays a key role in Nepalese economic
system, in which no other organization is likely to substitute it. The Nepal Rastra Bank (NRB)
gives direction and regulation to the commercial banks, whenever needed for proper
management of banking sectors. NRB has been a member of Asian Clearing Union (ACU).

3.2 Brief History of Organization

An institution which manages the currency and monetary policy of a state or formal monetary
union and oversees its commercial banking system is a central bank, reserve bank, or monetary
authority. At the time of the formation of Nepal Rastra Bank (NRB), Nepal, a land locked
nation in South Asia, had both Nepalese and Indian currencies circulating side by side as the
legal tender. The exchange rate was highly unpredictable and volatile between these two
currencies. In Nepal, there was no foreign currency reserve; it was controlled by India instead.
The economy was largely unmonetized and the domestic financial sector had a low level of
growth.

16
In addition, other than with India to the west, south and east, and China to the north, Nepal had
no major external contact. (Nepal Rastra Bank, 2002)
The following institutions were in service to support domestic financial operations before the
establishment of the NRB:

1. Tejarath Adda was established in 1880 A.D. to provide credit facility to the general public
at a concessional rate of interest. It is regarded as a premier foundation of modern banking in
Nepal. However, since it did not accept deposits from the public, it faced financial problems
making it impossible to meet the credit needs of the people.

2. Nepal Bank Limited (NBL), the first commercial bank of Nepal was established in
November 1937. It took deposits from and provided loans to the general public. It also took
over the responsibilities and functions of Tejarath Adda. However, its services were limited to
some urban areas of Nepal resulting in a large part of the country being deprived of banking
services.

3. Sadar Muluki Khana, the local treasury of the government was established in 1945 A.D.
for management of the government accounts and for issuing Nepalese currency notes. It issued
the first Nepalese currency notes of denominations: 1, 5, 10 and 100. However, it had no clearly
stipulated roles with regard to economic and financial development. The heads of Sadar Muluki
Khana were given the title of Khajanchees.

3.3 Organization Vision, Mission, Objectives and Function

Vision
To become “A modern, dynamic, credible and effective Central Bank”

Mission
To maintain macro-economic stability through sound and effective monetary, foreign exchange
and financial sector policies.

Objectives of the Nepal Rastra Bank

The objectives of Nepal Rastra Bank specified in Nepal Rastra Bank Act are briefly
highlighted below:
 To formulate necessary monetary and foreign exchange policies in order to maintain the
stability of price and balance of payment for sustainable development of the economy.
 To promote economic stability and liquidity required in banking and financial sector.

17
  To develop a secured, healthy and efficient system of payment.
 To regulate, inspect, supervise and monitor the banking and financial system.
 To promote entire banking and financial system of the kingdom of Nepal and to enhance its
public credibility.

Functions of Nepal Rastra Bank

The basic functions of Nepal Rastra Bank specified in Nepal Rastra Bank Act, are briefly
highlighted below:
 To manage note issue and money in circulation in the country.
 To formulate necessary monetary policies in order to maintain price stability and to
implement these polices.
 To formulate foreign exchange polices for the benefit of the country.
 To determine the system of foreign exchange rate.
 To manage and operate foreign exchange reserve.
 To issue license to commercial bank and financial institutions to carry on banking and
financial activities and transactions as well as to regulate, inspect, supervise and monitor
them.
 To act as a banker, an advisor and a financial agent of Nepal’s Government.

3.4 Branches

Following table shows provincial branches of Nepal Rastra Bank.

Table 2: Branches of Central Bank

Provinces Branch
Province no.1 Biratnagar
Province no.2 Janakpur and Birjung
Bagmati Pradesh Kathmandu (head office)
Gandaki Pradesh Pokhara
Lumbini Pradesh Nepalgunj and siddharthanagar
Karnali Pradesh Surkhet
Sudurpaschim Pradesh Dhangadi

3.5 Organizational Structure of Bank

Organizational structure enables the distribution of authority. The central bank has both tall and
flat organizational structure. As per section 14 of Nepal Rastra Bank Act, 2002, the Board of

18
Nepal Rastra Bank (NRB) comprises of seven members: four ex official members - the
Governor (who is the Chairman), the Secretary, Ministry of Finance, two Deputy Governors,
and three other Directors, who are appointed from amongst the persons renowned in the field of
Economics, Monetary, Banking, Finance and Commercial Laws. The Governor, Deputy
Governors and other Directors are appointed by Government of Nepal, Council of Ministers for
term of five years. Government may, reappoint the retiring Governor for another one term and
the retiring other Directors for any term, if it is deemed necessary. The Board of Directors,
chaired by the Governor, is the apex body of policy making and the Governor also discharges
his duty as the chief executive of the Bank.

Figure 2: Organization structure

Source: www.nrb.org.np

3.5. 1 Board of directors, management committee, and audit committee

19
 The Board of Directors formulates necessary and relevant policies, by-laws, rules, regulation,
and guidelines for NRB and takes necessary decisions pertaining to the overall organizational
management and policy matters of the Bank.

Table 3: composition of Board of Directors

S.N. Members Name Position

1. Governor Mr. Maha Prasad Chairman
Adhikari
2. Secretary, Ministry of Finance Mr. Ghanshyam Member
Upadhyaya
3. Deputy Governor Dr. Neelam Member
Dhungana Timsina

4. Deputy Governor Mr. Bam Bahadur Member

Mishra

5. Member appointed by government of Dr. Ravindra Prasad Member

Nepal Pandey
6. Member appointed by government of Mr. Chinta Mani Member
Nepal Siwakoti
7. Member appointed by government of Dr. Shankar Prasad Member
Nepal Acharya

Source: www.nrb.org.np/aboutus/bod.php

Management committee

The main functions of the management committee:

1. Carrying out periodic review of country's monetary and financial conditions

2. Reporting to the Board of Directors on matters related to the Bank's administration and
operation
3. Implementation of the Bank's monetary and regulatory policies
4. Recommending for further strengthening of the financial system
Table 4: composition of Management Committee

Governor Chairman
Deputy Governor Member

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 Deputy Governor Member
Senior Officer (Designated by the Governor) Member Secretary

Source: www.nrb.org.np/aboutus/bod.php

Audit committee

The main functions of the Audit Committee constitute

1. Overseeing and reporting to NRB’s Board of Directors on accounts, budget, audit procedure
and control system of the Bank.
2. It drafts bylaws for auditing of the NRB in accordance with the prevailing laws and
international auditing standards.
3. It reports to the Board of Directors through the Audit Committee

Table 5: composition of Audit committee

One of the Board Directors Governor

External Expert nominated by the board Member
Chief of Internal Audit Department of the Member Secretary
Bank
Source: www.nrb.org.np/aboutus/bod.php

3.5.2 Departments, divisions and units in NRB

Departments in NRB

There are total of 18 departments in Nepal Rastra Bank including Govern’s office as one of
them rest 17 are listed as below:

1. Economic Research Department

2. Banks and Financial Institution Regulation Department

3. Foreign Exchange Management Department

4. Currency Management Department

5. Financial Management Department

6. Human Resources Management Department

21
7. Internal Audit Department

8. Monetary Management Department

9. Microfinance Institutions Supervision Department

10. Bank Supervision Department

11. Assets and Service Management Department

12. Financial Institution supervision Department

13. Non-bank Financial Institutions Supervision Department

14. Information Technology Department

15. Corporate Planning and Risk Management Department

16. Payment Service Department

17. Banking Department

Divisions
a) Legal Division
b) Mint Division
c) Bankers’ Training Centre
Units
a) Financial Information Unit

3.6 Product
Being the Central Bank of Nepal, Nepal Rastra Bank provides various services to the
government, banks and financial institutions, and to its various customers. NRB doesn’t
perform the functions like other banks but it performs regulating and supervising functions.
Hence its products and services are related to these functions. Central banks usually have
supervisory powers, intended to prevent bank runs and to reduce the risk that commercial banks
and other financial institutions engage in reckless or fraudulent behavior. Some of the basic
products of Public Debt Management Department are listed as:

 Treasury Bills (T-Bills)

 Repo and Reverse Repo
 Outright Purchase/Sell
 Bank Rate
22
  Standing Liquid Facility (SLF)
 Treasury Bonds
 Loans against Treasury Securities
 Deposit Collection/ Deposit Auction
 Maintain Foreign Currency Reserve
 Credit control
 Lender of last resort
To control the liquidity position of the economy, NRB offers a variety of money market
products, such as T-bills and Repos. NRB additionally issues Treasury Bonds on behalf of the
government. These could be considered NRB products. The NRB also manages foreign
exchange reserves for various government agencies and financial organizations. NRB serves as
a lender of last resort by providing financial support if any institution at that time needs
financial support. NRB also offers the government insightful guidance on a range of economic
problems and variables.

3.7 Organizational Performance/Organizational Financial Position

3.7.1 Organizational Performance

 Issuance of monitory policies
 Issuance of notes
 Controlling other financial institutions
 Debt manager of the government
 Economic advisory role to the government
 Lender of the Last Resort (LOLR)
 Foreign currency exchange
 Enhance payment and clearing system

3.8 SWOT Analysis of NRB

SWOT analysis (or SWOT matrix) is a strategic planning technique used to help a person or
organization identify strengths, weaknesses, opportunities, and threats related to business
competition or project planning. It is intended to specify the objectives of the business venture
or project and identify the internal and external factors that are favorable and unfavorable to
achieving those objectives. The SWOT analysis of Nepal Rastra Bank is as follows:

Strengths
 NRB is the apex body to regulate all BFIs.

23
 The bank is a self-dependent institution with strong legal structure.
 The bank has sufficient physical resources for operation of the various activities.
 The bank has the skilled and qualified human resources.
 The bank has global exposures as it is the central bank of Nepal.
 NRB has been a member of Asian Clearing Union (ACU) and Alliance for Financial
Inclusion.

Weakness
 The bank has inefficient IT infrastructure.
 There is a poor coordination between departments and corporate governance.
 The old staffs feel uneasy in using computers and other equipment’s.
 The bank makes delay in preparation and presentation of financial statement due to use of
traditional accounting practice.
 Due the improper division of departmental work some departments are overloaded while
others are under loaded and office layout.

Opportunities
● NRB has access to international institutions for learning and knowledge sharing as the bank
has global exposure.
● NRB has access to take part in international organization or associations working for
financial and economic stability through international monetary cooperation.
● NRB can obtain the banking and payment services from foreign central banks, foreign
banks and international organizations.
● The extended financial market helps in increasing the scope and use of monetary policy
instruments.

Threats
● There is negative effect on returns on foreign investment due to the fluctuation of interest
and exchange rate in the international market. There is a wrong reporting from public and
private media which leads to flow of incorrect information.
 The development of informal financial market and co-operatives are affecting the task of
macroeconomic management.
 It is difficult to match with international practices due to due to rapid development of
technology in international market.
● Political instability causes an excessive impact on monetary policy implementation

24
 CHAPTER IV:

ANALYSIS OF ACTIVITIES UNDERTAKEN AND

PROBLEM SOLVED

4.1 Financial Management Department and its Major Functions

The Financial Management Department of Nepal Rastra Bank (NRB) is a crucial
department responsible for overseeing and managing the financial resources of the central
bank. It plays a vital role in ensuring effective financial planning, budgeting, reporting,
analysis, and risk management within NRB. The department's primary objective is to
ensure the optimal utilization of financial resources while maintaining transparency,
accountability, and adherence to regulatory standards.

The Financial Management Department works closely with other departments within
NRB to support the achievement of the bank's goals and objectives. It collaborates with
stakeholders, including auditors, regulatory authorities, and government agencies, to
provide accurate financial information, comply with regulations, and enhance financial
governance.

The Financial Management Department in Nepal Rastra Bank (NRB) performs various
functions that are essential for managing the financial resources of the central bank. The
key functions of the Financial Management Department in Nepal Rastra Bank include:

1. Budgeting and Financial Planning: The department is responsible for formulating and
preparing the annual budget of NRB. It collaborates with other departments to
determine the financial requirements and allocates resources accordingly. Financial
planning involves forecasting future financial needs, analyzing trends, and ensuring
efficient utilization of financial resources.

2. Financial Reporting and Accounting: The department prepares accurate and timely
financial reports and statements in compliance with international accounting
standards and regulatory requirements. It ensures transparency and accountability in

25
 financial reporting, maintaining proper accounting records, and conducting periodic
financial audits.

3. Financial Analysis and Performance Evaluation: The Financial Management

Department analyzes the financial performance of NRB, including revenue,
expenditure, and financial ratios. It evaluates the effectiveness and efficiency of
financial operations, identifies areas for improvement, and provides recommendations
for optimizing financial performance.

4. Cash Management: The department manages the cash flow and liquidity of NRB. It
monitors cash inflows and outflows, maintains sufficient cash reserves, and ensures
the availability of funds to meet operational requirements. Cash management involves
forecasting cash needs, optimizing cash utilization, and maintaining a balanced cash
position.

5. Investment Management: The department is responsible for managing NRB's

investment portfolio. It formulates investment strategies, evaluates investment
opportunities, and makes investment decisions in accordance with the bank's
objectives and risk tolerance. Investment management aims to generate returns while
ensuring the safety and liquidity of the bank's funds.

6. Risk Management: The Financial Management Department identifies, assesses, and

manages financial risks faced by NRB. It develops risk management policies and
procedures, implements risk mitigation measures, and monitors compliance with risk
management guidelines. Risk management involves identifying and addressing
potential risks related to credit, market, liquidity, and operational aspects.

7. Financial Policy Formulation: The department contributes to the formulation of

financial policies and guidelines for NRB. It conducts research, assesses market
conditions, and provides recommendations on financial policies related to interest
rates, foreign exchange, reserve management, and other financial aspects. Financial
policy formulation aims to promote monetary stability and financial sector
development.

26
8. Coordination with External Stakeholders: The Financial Management Department
collaborates with external stakeholders such as auditors, regulatory authorities, and
government agencies. It provides necessary financial information, responds to
queries, and ensures compliance with regulatory requirements. The department also
participates in interdepartmental coordination within NRB to facilitate effective
financial management.

Overall, the Financial Management Department in Nepal Rastra Bank plays a critical role
in managing the financial resources, ensuring financial stability, and supporting the
overall objectives of the central bank.

4.2 Activities Performed in NRB

During the eight weeks internship period, internee was placed in the Financial
Management Department of Nepal Rastra Bank (NRB) Central Office, Baluwatar,
Kathmandu. under this department various task completed by an internee in different
units of the department are as follows.

1. Pension unit

A pension fund is a fund that accumulates capital to be paid out as a pension for
employees when they retire at the end of their careers. These services are generally for
the former employees of the bank. Bank enter the data of the pensioner every six months
in the name of renewal but the fund is provided every month in the holder’s bank
account. Following are the activities done by the internee under the pension division:

 Registering Pension Holder's Accounts and updating their accounts, linking it to

their respective bank account.
 Updating Renewals of Pension Holder’s Accounts of Employees using the Olympic
Banking System (GL System)

2. Retirement unit

A retirement fund is a long-term investment account that allows an individual to save for
retirement. By setting aside portions of employees’ current income towards the future, it
provides advantage of certain tax benefits. Generally, the work on this unit was done by

27
the system where the access was given to the employees only. The intern was placed in
this unit only to assist the staff members there.

3. Balance sheet unit

The term balance sheet refers to a financial statement that reports a company's assets,
liabilities, and shareholder equity at a specific point in time. Balance sheets provide the
basis for computing rates of return for investors and evaluating a company's capital
structure. Under this unit the intern was assign to make the balance sheet format in word
document.

4. Employee procurement unit

Employee procurement involves: obtaining the best value for money, meeting customer
expectations, and reducing risk. There would be various kind of procurement the bank
has to do for the benefit of the employees for example: new bags, desktop, printer,
scanner, or any kind of things that employee's needs.

 Entering the data manually related to the expenses made by the banks to its
employees such as: new printer, scanner, bags, personal computer, pen and so on.
 Entering the details of employees i.e.name, department and post, subject, amount
of the expenses and reference number.
 Validating the recorded data through Signature of the authorize person.

5. Employee travel unit

The purpose of this unit is to provide travel and daily allowance (TADA) of both Local
and International on advance and settlement of advance after submission of actual bills
and related documents by concerned staff. This section covers advance payment for
traveling and daily allowance (TADA) for local and international training, seminar etc.,
and settlement and accounting of the same. The job responsibilities were of the internee
were:

 Identifying various types of bills and letters (Travel Orders), distributing it to

concerned authorities and signatories

28
  Registering the data in registers according to the type and place of travel

6. Employee expense unit

This unit is related to the expenses done by the employee like medical, loan, any kind of
bills etc. Employee Expenses means any and all employee costs of the Default Specialist
Workforce, including but not limited to, personnel salaries, overtime, bonuses,
commissions, fringe benefits, accrued vacations, sick leave time, profit sharing, pension,
and any insurance benefits. Following are the activities done by the internee:

 Medical expenses or any kind of bills are directly given to the authorize
employee.
 Make a tax certificate where the employee’s name, position, code number and
date must be mandatory.
 Tax certificate can be either made in Nepali and English language according to
the employee’s requirement.
 Once verified and signed by the director, stamp of that division should be at the
top of the certificate.

7. Internal administration unit

This unit ensures the establishment of an environment, which provides direction and
support to all other units along with coordination between them, provides them necessary
infrastructure facilities and ensuring the proper maintenance of the premises. Internee ws
assigned to do the following task in this unit.

 Creating and updating Employee Income Certificates

 Creating and updating Pension holder’s Income Certificates
 Creating Income certificates in various FOREX rates for Pension holders and
employees’
 Typing, mailing and notifying authorities of important documents in case of
specialty cases

29
4.3 Problems Identified and solved
During the internship period in Nepal Rastra Bank, even though the intern was supported
duly, and was given tasks in a managed and balanced way, there were some problems and
issues that could be solved. Some of the problems are as follows:
 Lengthy procedure
Since work like generating income certificates of employee, tax certificates were
related to multiple departments, the intern self-filled the form of the employee and
had to physically move those certificates to various departments for obtaining
signatures which was time consuming and lengthy in nature. The intern helped the
retired staff as well as existing employees by filling up the form and taking
documents physically wherever required.

 Poor Filing and storage system

Due to poor filing and storage systems, it was difficult to find important documents
or information when needed. Intern helped to organize the files and ensured that the
files were labeled correctly and stored in appropriate locations.

 More paperwork
Another problem noticed was use of more paper in carrying out official work which
had created difficulty in finding information that is needed quickly. The intern
helped to identify areas where paperwork requirements were unnecessary which help
to reduce the amount of paperwork. Managing digital database and use of mail
reduced the paper work in NRB.

 Time constraint
Balancing multiple task at a time was another great deal during internship for instance
creating income certificate and tax certificate at the same time for more than two
different fiscal year. Internee prioritized task based on urgency and importance, and
sought assistance whenever needed.

 Adaptation to organization culture

As an intern, adapting to NRB’S culture and understanding bank’s policy and
procedures presented a learning curve. To overcome this, internee actively observed
and sought guidance from experienced colleagues.

30
4.4 Observation Gap
Before the internship, internee only had a theoretical understanding of financial
management concepts and the functioning of a central bank. However, there were certain
observation gaps that existed prior to internship. These observation gaps were filled and
enhanced during the internship experience. Here are the key observations gaps and the
changes that occurred after the internship:

1. Practical Application: Internship provided intern, with the opportunity to apply

theoretical knowledge to practical scenarios, such as preparing income and tax
certificate, updating pension account. This hands-on experience bridged the gap
between theory and practice, enabling intern to understand how financial
management concepts are implemented in a central bank.

2. Understanding of Central Bank Operations: Internship allowed intern to

observe how the Financial Management Department plays a crucial role in
managing financial resources, formulating monetary policies, and ensuring
financial stability. This experience provided me with a deeper understanding of
the central bank's overall operations and its importance in the economy.

3. Teamwork and Collaboration: Prior to the internship, internee had limited

exposure to working in a professional team environment, particularly in the
context of a central bank. During the internship, interne observed the
collaborative nature of the Financial Management Department, where teamwork
and effective communication were vital for successful outcomes.

4. Regulatory Compliance: Internship highlighted the significance of regulatory

compliance within a central bank. Interne observed the strict adherence to
financial regulations, reporting standards, and internal controls to maintain
transparency, accountability, and integrity in financial management. This
observation gap was filled by understanding the practical implications and
challenges of ensuring regulatory compliance in a highly regulated environment.

31
5. Real-world Challenges: Before the internship, internee’s understanding of the
challenges faced in financial management was primarily based on theoretical
scenarios. However, during the internship, internee observed and experienced
real-world challenges such as managing complex financial data, time constraints,
and adapting to organizational culture. These observations provided internee with
a realistic understanding of the challenges encountered in financial management
and equipped me with problem-solving skills to overcome them.

Overall, the internship experience significantly narrowed the observation gaps

internee had prior to the internship and has contributed to internee’s professional
growth, bridging the gap between theory and practice in financial management
within the context of Nepal Rastra Bank.

32
 CHAPTER V:

CONCLUSION, LESSON LEARNT AND

RECOMMENDATION

5.1 Conclusion
During 8-week internship at Nepal Rastra Bank (NRB) in the Financial Management
Department, internee gained valuable practical experience and knowledge in the field of
financial management within a central bank setting. The provided internee with an
opportunity to apply theoretical concepts learned in academic studies to real-world
situations and enhanced internee’s understanding of the functions and operations of the
Financial Management Department. Various responsibilities and task assigned allowed
internee to contribute to the department's operations and learn from experienced
professionals. Working alongside professionals from diverse backgrounds, engaging in
discussions and sharing ideas. Improved internee’s interpersonal and communication
skills and provided exposure to different perspectives in financial management.

During the internship, internee faced challenges such as complex financial analysis and
time management, adaptation to organizational culture etc. However, with the guidance
and support of supervisor and other staffs, internee was able to overcome these
challenges and develop effective problem-solving and time management strategies.

Overall, the internship at Nepal Rastra Bank's Financial Management Department was a
valuable and enriching experience. The internship has significantly contributed to
internee’s professional growth in the field of finance and banking, and is grateful for the
opportunity to learn and contribute to the Financial Management Department at Nepal
Rastra Bank.

5.2 Lesson Learnt

During 8 weeks internship at Nepal Rastra Bank's Financial Management Department,
internee learned several valuable lessons that have contributed to internee’s professional
growth and development. Here are some key lessons learned from the internship:

33
 1. Importance of Attention to Detail

2. Punctuality and Effective Time Management

3. Collaboration and Teamwork

4. Adaptability and Flexibility

5. Professionalism and Ethical Standards

6. Continuous Learning

7. Sense of responsibility and accountability

Overall, the internship taught valuable lessons beyond technical skills. It provided
internee with a broader understanding of the financial management field, reinforced
the importance of key qualities such as attention to detail and adaptability, and
instilled a sense of professionalism and continuous learning. These lessons will serve
as a strong foundation for internee’s future endeavors in the finance and banking
industry.

5.3 Recommendation
5.3.1 Feedback to the organization
Based on my internship experience at Nepal Rastra Bank, I have some recommendations
that could potentially enhance the organization's overall effectiveness and efficiency:

1. Embrace Digital Transformation: Nepal Rastra Bank can benefit from embracing
digital transformation in its financial management processes. Implementing modern
financial management software and tools can streamline operations, improve data
accuracy, and enhance efficiency.

2. Enhance Communication and Collaboration: Strengthening communication and

collaboration within and across departments can lead to better coordination and
improved outcomes. Encouraging regular team meetings, knowledge-sharing
sessions, and cross-departmental projects can foster a culture of collaboration and
facilitate the exchange of ideas and best practices.

34
3. Foster a Learning Environment: Promote a culture of continuous learning and
professional development within the organization. Encourage employees to attend
training programs, seminars, and workshops to enhance their skills and stay updated
with the latest industry trends.

4. Promote Ethical Standards and Transparency: Emphasize the importance of ethical

standards and transparency in all financial management processes. Encourage
employees to adhere to a code of conduct and provide regular training on ethics and
integrity.

5. Foster Employee Engagement: Focus on employee engagement initiatives to promote

a positive work environment and increase employee satisfaction. Recognize and
reward outstanding performance, provide opportunities for career advancement, and
encourage employee feedback through surveys or suggestion boxes.

6. Develop Strategic Partnerships: Explore opportunities to develop strategic

partnerships with other institutions, both domestically and internationally.
Collaborating with relevant organizations can facilitate knowledge sharing, promote
research and development, and strengthen the capabilities of Nepal Rastra Bank in
areas such as financial technology, regulatory frameworks, and policy development.

These recommendations aim to support Nepal Rastra Bank in its continuous

improvement and pursuit of excellence in financial management. By embracing
technology, fostering collaboration, promoting learning, and enhancing risk management
and ethical standards, the organization can further enhance its effectiveness, efficiency,
and overall impact in the banking sector.

5.3.2 Feedback to the college/ University

 University should foster collaborations and partnerships with a wide network of
companies, government agencies, NGOs, and other institutions to provide a broader
range of internship options.
 It should regularly collect feedback from students and internship supervisors to assess
the relevance, effectiveness, and overall satisfaction with the internship programs.

35
 It should organize networking events, industry panels, and guest lectures where
alumni and industry experts can share their experiences and provide guidance to
students.
 It should facilitate internship-to-employment transitions by nurturing relationships
between interns and potential employers.
 The college ought to consider making school time adaptable for understudies after the
internship is over in light of the fact that working and increasing pragmatic learning is
similarly essential as hypothetical information.
By implementing these recommendations, Lincoln University and college can
enhance the quality and effectiveness of internships, providing students with valuable
learning experiences and improving their transition from academic studies to the
professional world.
In spite, of all I would like thank to Lincoln University and National College of
Management and Technical Science, for giving such course structure, extremely
modern indicating teachers, and better school environment and giving such passage
level position undertakings to get the learning of organization understudies.

36
 REFERENCES

Bhandari, & D.R. (2017). SWOT analysis. Business Strategy, 107-112.

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