Internship at nepal rastra bank ( nrb )

PRESENTATION ON

INTERNSHIP REPORT NEPAL RASTRA BANKPRESENTED BY:

PAWAN KAWANMBA - V TRIMESTER, Pokhara University

UNIGLOBE COLLEGE 

CHAPTER I: ORGANIZATIONAL PROFILE

Central Bank

A central bank is a public institution that manages a state’s currency, money supply, and interest rates.

The primary function of a central bank is to manage the nation's money supply, through active duties such as managing interest rates, setting the  reserve requirement, and acting as a lender of last resort to the banking sector during times of bank insolvency or financial crisis.

Nepal Rastra Bank

NRB, the central bank of Nepal, established in 1956 under the Nepal Rastra Bank Act 1955.

It has seven offices located at Biratnagar, Janakpur, Birgunj, Pokhara, Siddharthanagar, Nepalgunj and Dhangadi.

It supervises the financial institutions in Nepal and formulate monetary policy.

Nepal Rastra Bank also oversees foreign exchange rates and the country’s foreign exchange reserve.

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.

Lists of governors of NRB since its inception

S.N. Name of Governor Term of office

1.  Mr. Himalaya Shumsher J.B. Rana  April 26, 1956 – February 7, 1961

2.  Mr. Laxmi Nath Gautam  February 8, l961 – June 17,  l965

3.  Mr. Pradyuma Lal Rajbhandari  June l8, l965 – August 13, l966

4.  Dr. Bhekh Bahadur Thapa  August 14, l966 – July 26, l967

5.  Dr. Yadav Prasad Pant  April 24, l968 – April 28, l973

6.  Mr. Kul Shekhar Sharma  April 29, l973 – December 12,  l978

7.  Mr. Kalyana Bikram Adhikary  June 13, l979 – December 8,  l984

8.  Mr. Ganesh Bahadur Thapa  March 25, l985 – May 22, l990

9.  Mr. Hari Shankar Tripathi  August 10, l990 – January 17,  l995

10.  Mr. Satyendra Pyara Shrestha  January l8, l995 – January l7,  2000

11.  Dr. Tilak Bahadur Rawal  January l8, 2000 - January l7, 2005

12.  Mr. Deependra Purush Dhakal  August 29, 2000 – April 27,  2001

13.  Mr. Bijaya Nath Bhattarai  January 31, 2005 –January 30, 2010

14.  Mr. Deependra Bahadur Kshetry  January 15, 2009 – July 26, 2009

15.  Dr. Yuba Raj Khatiwada  March 22, 2010 – Present

Major Markets and Customers

Government of Nepal Banks and Financial Institutions Corporations or the firms Investors

List of Banks and Financial Institutions, As of Mid October, 2013(NRB)

Commercial

Banks

Development

Banks

Finance

Companies

Micro-

finance

Development

Banks

Saving &

Credit

Cooperatives

Limited

Banking

Activities)

NGOs (Financial

Intermediaries)

31 87 59 35 15 31

Growth of BFIs

Products and Services

Products: Treasury Bills (T-Bills) Repo and Reverse Repo Outright Purchase/Sell Bank Rate Standing Liquid Facility (SLF) Treasury Bonds like Development Bonds, Special

Bonds, National Saving Bonds, and Citizen Saving Bonds.

Loans against Treasury Securities

Services Provided By NRB

Bank of Note Issue Banker, Agent and Adviser to the Government Bankers' Bank Lender of Last Resort Clearing Agent Credit control Collection of Data

Organization Design and Structure

S.N Members Name Position

1. Governor Dr. Yuba Raj Khatiwada Chairperson

2. Secretary, Ministry of Finance Mr. Shanta Raj Subedi Member

3. Two Deputy Governors 1. Mr. Gopal Prasad

Kaphle

2. Mr. Maha Prasad

Adhikari

Member

4. Three Directors appointed by the

Government of Nepal from amongst the

persons renowned in the fields of

Economic, Monitory, Banking, Finance

and Commercial Law

1. Dr. Sri Ram Poudyal

2. Dr. Ramhari Aryal

3. Mr. Bal Krishna Man

Singh

Member

Board of Directors

Organizational structure of Nepal Rastra Bank

Financial Structure

Total assets in the fiscal year 2068 and 2069 is 320,811,794,892 and 453,847,106,065 and total liabilities and equity in the fiscal year 2068 and 2069 is 320,811,794,892 and 453,847,106,065.

The total profit for the year 2068 is 7,146,944,785 and in 2069 are 37,748,073,230.

Organizational Performance

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

CHAPTER II: JOB PROFILE AND ACTIVITIES PERFORMED

Activities Performed In The Organization

S.N Job Title Section weeks

1 General Ledger Reconciliation 3

2 Pay Order Reconciliation 6

3 Pension Pension 3

Total Durations 12

Durations:

Sections in FMDFMD

Internal Administrative Section

Reconciliation section

Pension Section

Balance Sheet Section

Salary Section

Retirement Fund Section

Bill Section

OLYMPIC BANKING SYSTEM

The Finance Department of Nepal Rastra Bank uses OLYPIC Banking Software to carry out day to day financial activities from Baisakh 2070.

The OLYMPIC Banking System is one of the most comprehensive and modern solutions to support all aspects of modern and sophisticated private banking.

Gateway for OLYMPIC Banking System

Place Old General Account code

FMD 1100000-038-000-524

KBO 1200000-038-000-524

CMD 1300000-038-000-524

BRT 1500000-038-000-524

JNP 1600000-038-000-524

BRG 1700000-038-000-524

PKR 1800000-038-000-524

SID 1900000-038-000-524

NEP 2100000-038-000-524

DHN 2200000-038-000-524

The address of the system is http://192.168.160.21:9081/PROD/Olympic.do. And the old code for the Departments is listed below:

Old General Account Code

New Code for G.L Posting

Place New Code for G.L Posting

FMD 1109901-011-000-524

KBO 1209901-011-000-524

CMD 1309901-011-000-524

BRT 1509901-011-000-524

JNP 1609901-011-000-524

BRG 1709901-011-000-524

PKR 1809901-011-000-524

SID 1909901-011-000-524

NEP 2109901-011-000-524

DHN 2209901-011-000-524

Pay Order

A bank pay order is a document that gives instructions to a bank to give out or pay some specified amount of cash to a third party. Such orders are generally recognized by the bank which guarantees that the payment will be made.

The Code for Pay order is 1100000-014-000-524

Steps to reconcile the Pay Order

Go to http://192.168.160.21:9081/PROD/Olympic.do Click Equity Click Client Type pay order code: 1100000-014-000-524 Click Ok Account Movements found Right click on Account Bank reconciliation (Status option) Click unreconciled movements Match debit and credit items.

Activities performed at Reconciliation Section

Using Olympic Banking System for reconciliation. Matching debit and credit items. Whenever the debit item is not matched with

existing credit item then it is informed to Supervisor.

Activities performed at Reconciliation Section Cont…

Visited the Bill Section and Salary Section for finding the pay order which is not matched with debit items.

Teach the new Intern about the reconciliation process and other problem solving technique.

Making the letter to different section whenever the credit item was not found in the system.

Activities Perform at Pension Section

A pension is a contract for a fixed sum to be paid regularly to a person who get retirement from service.

At present there are 2214 persons who take pension at Nepal Rastra Bank.

70 years and more = 10 % more pension 80 years and more = 20% more pension Calculation:

Pension =

Activities Perform at Pension Section Cont…

Recording the increased pension of 2068 and 2070 in the pension book manually.

Corrected the record whenever the past records are incorrect. Sometime the total pension in the book was not matched with

the present pension sheet, then that must be corrected. Employees age above 70 are given 10% more pension and

20% more to age above 80 but these amount must be separately given and should not recorded with present pension. Thus Internee found out and corrected different such cases where 10% and 20% pension are added to pension.

Incorrect transaction are recorded in separate sheet and provided to supervisor.

Problem Solved

During reconciliation, sometime debit item does not matched with credit item then such transaction must be inform to supervisor.

When debit item did not match with credit item during reconciliation then Internee visited Bill Section and Salary Section for finding the credit item.

If there are many items that are not matched then letter must be typed and sent to concern section to solve the problem.

Record regarding increase pension are not recorded in pension book since 2068, thus Internee recorded all those records.

Internee found out and corrected different cases regarding 10% and 20% more pension added to net pension which should not be added.

Incorrect and hard problem are recorded in separate sheet and provided to concern supervisor.

Intern’s Key Observation

The electronic equipments like computer and its peripherals were mostly out of proper working conditions.

There is proper coordination between the staffs. No proper managed infrastructure. Staffs have problems with computers and its applications. The working system of the department is systematic and rigid. The concept of transfer, rotation and promotion of employees

cause several problems. All employees must do attendance through electronically which

avoids staffs delay in bank. There are four employees Unions at NRB to protect the right of

employees. All staffs are polite and kind to the interns.

CHAPTER III: LESSON LEARNT AND FEEDBACK

Key Skills and Attitudes Learnt

Communication Skills

Teamwork Skills

Computer & Technical Skills

Initiative

Interpersonal Skills

Problem-Solving Skills

Analytical Skills

Flexibility / Adaptability

Organizational Skills

Leadership Skills

Self-Confidence

Self – Motivation

Feedback to Organization

New and effective means of technology should be used for providing service to the customer.

Re-structure and re-organize the job and responsibilities so that there is efficiency in job completion.

Proper maintenance of computers and other devices should be ensured timely for effectiveness.

Staffs should be familiar with IT and technologies. Staffs should be provided adequate training on use of

computers and other devices.

Feedback to College/University

The college/university should prepare a fixed framework of internship activities to be carried out by students during internship.

College should send the supervisor to the organization before, after and during the internship program.

The interaction class must be provided by the college at every weekend.

MBA students and BBA students did the same level of work during the internship period, so college should refer to the organization to give the task to the interns according to their qualification.

College should be in touch with the organization where students did their internship so that the college can get timely feedback about the intern.

The internship program should be kept on the last trimester which gives chance to get the job within the same organization of internship.

With Assistant Director Mr. Bilash Chandra Rai

Special Thanks to: Prof Dr. Radhe Shyam Pradhan Program Director Mr. Dipkar Thapa Act. Director Mr. Naresh Shakya Deputy Director Mr. Bijaya kumar Shrestha Deputy Director Mr. Kishor Kumar Dhakal Assistant Director Mr. Bilash Chandra Rai Judges and Friends…

THANK YOU