DIGITAL BANKING ACTIVITIES OF MACHHAPUCHCHHRE

BANK LIMITED
(Machhapuchchhre Bank Limited, Head Office Lazimpat Kathmandu)

An Internship Report

BY
Bibek Raut
Patan Multiple Campus
T.U Registration No: 7-2-22-2-2015
Exam Roll No: 16251/15

Submitted to

Office of the Dean

Faculty of Management, Tribhuwan University

In partial fulfillment of the requirements for the degree of

Bachelor of Business Administration

Patandhoka, Lalitpur
November 2019

i
 DECLARATION

This is to declare that I have completed the internship report entitled “DIGITAL
BANKING ACTIVITIES OF MACHHAPUCHCHHRE BANK LIMITED
LAZIMPAT HEAD OFFICE” under the guidance of “Prof. Dr. Yuga Raj Bhattarai” in
partial fulfillment of requirements for the degree of Bachelor of Business Administration
at Faculty of Management, Tribhuvan University. This is my original work and I have
not submitted it earlier elsewhere.

Date: …………………… Signature: …………………

Bibek Raut

ii
ORGANISATION CERTIFICATE

To whom it may concern

iii
 APPROVAL SHEET
This is to certify that the internship report

Submitted By:
Bibek Raut
T.U Registration No: 7-2-22-2-2015
Exam Roll No.: 16251/15

Entitled:
“DIGITAL BANKING ACTIVITIES OF MACHHAPUCHCHHRE BANK
LIMITED”

found satisfactory in scope and quality for the partial fulfillment of BBA Program, Faculty
of Management, Tribhuvan University and thus, approved by the Approval Committee and
has been forwarded for examination.

Approval Committee:

Supervisor:
Signature: .........................................................................................................
Name: ...............................................................................................................
Designation: .....................................................................................................
External Supervisor:
Signature: .........................................................................................................
Name: ...............................................................................................................
Designation: .....................................................................................................
Head, Research Committee:
Signature: .........................................................................................................
Name: ...............................................................................................................
Designation: .....................................................................................................
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 ACKNOWLEDGEMENT

This report entitled as “Digital Banking Activities of Machhapuchchhre Bank Limited

(Machhapuchchhre Bank Limited, Head Office Lazimpat Kathmandu)” is prepared for the
partial fulfillment of the requirement for the degree of Bachelor in Business
Administration (BBA). Hence, I am thankful to Tribhuvan University for providing me
with an opportunity to be involved in the internship program which gave me the real time
exposure to the work environment and bridge the gap between theoretical learning and
practical understanding to some extent. I am thankful to Prof. Dr. Yuga raj Bhattarai, BBA
Program Coordinator of Patan Multiple Campus for his direct and indirect support in
completion of this internship report.
It is my great pleasure to perform the practical activities in the MBL. The completion of
the internship and the report has been possible only because of the appreciated support of
many people. I benefitted immeasurably from their knowledge, suggestion and feedback. I
express my sincere gratitude to Mr. Rijan Karmacharya, Incharge of DBD for supervising
me throughout my period.

I express my sincere thanks to Mr. Janak Buda, Relationship officer, assists me during the
internship. I would like to show my immense gratitude to Mr. Alok man Shrestha DBD
Head Lazimpat Head office for their cooperation and guidance throughout my internship
period.

Most of all, thanks to Prof. Dr. Yuga raj Bhattarai, my supervisor, for his valuable
guidance and encouragement throughout the preparation of this report.

At last, I sincerely acknowledge my thanks to all those people who have helped me
directly and indirectly during the internship period and in the preparation of this report.

Thanking You
Bibek Raut

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 TABLE OF CONTENTS

declaration............................................................................................................................................ii
organisation certificate........................................................................................................................iii
approval sheet......................................................................................................................................iv
acknowledgement.................................................................................................................................v
table of contents...................................................................................................................................vi
list of tables.........................................................................................................................................vii
list of figures.........................................................................................................................................xi
abbreviations........................................................................................................................................ix
INTRODUCTION................................................................................................................................1
1.1 Background.............................................................................................................................1
1.2. Objectives...............................................................................................................................2
1.3. Methodology..........................................................................................................................2
Research methodology is a systematic investigation on a particular subject matter. It is a study
of material and source in order to establish facts and reach a new conclusion. It is concerned
with the various methods and techniques used in the process of research studies. Data for this
report were gathered from both primary and secondary source of information collected
through the period of internship...................................................................................................2
1.3.1 Organization Selection......................................................................................................2
1.3.2 Placement.........................................................................................................................3
1.3.3. Duration of Internship.....................................................................................................3
1.3.4. Activities..........................................................................................................................3
1.4 Limitations...............................................................................................................................5
CHAPTER - II......................................................................................................................................6
INTRODUCTION OF THE BANKING INDUSTRY...................................................................................6
2.1. Concept of Banking................................................................................................................6
2.2. Evolution of Banking...............................................................................................................6
2.3. Origin and Evolution of Banking in Nepal...............................................................................8
2.4. Types of Bank and Financial Institutions..............................................................................10
Table 2.1......................................................................................................................................10
Classification of Banks in Nepal...................................................................................................10
2.5. Role of Banking Industry in Economy...................................................................................10
2.5.1. Credit generation..........................................................................................................10
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 2.5.2. Fund mobilization..........................................................................................................11
2.5.3. Generate employment opportunity..............................................................................11
2.5.4. Investment opportunity generation..............................................................................11
2.5.5. Availing access to the resources....................................................................................11
2.5.6. Smoothing of trade and commerce functions...............................................................11
2.5.7 Functions of Commercial Banks......................................................................................11
2.6. Present Situation of Banking Sector.....................................................................................12
2.7. Opportunities and Challenges faced by Banking Industry....................................................13
CHAPTER - III...................................................................................................................................15
INTRODUCTION OF MACHHAPUCHCHHRE BANK LIMITED..............................................................15
3.1. Background of the Organization...........................................................................................15
3.1.1. Vision.............................................................................................................................16
To become the bank of the first choice of the people..............................................................16
3.1.2. Mission..........................................................................................................................16
To be one of the most preferred banks in Nepal, easily recognized as the bank which satisfies
and cares for its customers through quality service, innovative products, professionalism and
wide branch network, offering full array of financial services using modern technology and
with good corporate governance practices...............................................................................16
3.1.3. Value.............................................................................................................................16
With the objective of supporting the transition from rule based to attitude based behavior, the
Bank is functioning with the following five core values:.........................................................16
1. Integrity: Highest level of integrity / absolute honesty in all the business conduct and
dealings with customers, staff, regulators, and other stakeholders..........................................16
2. Accessibility: Easy accessibility through traditional as well as modern means of
communication........................................................................................................................16
3. Value Creation: For shareholders, customers, employees and the nation............................16
4. Quality Service: Through unmatched professionalism and excellent customer care...........16
5. Stewardship of Resources: With the feeling of ownership and accountability....................16
3.1.4. Capital Structure............................................................................................................16
 Authorized Capital NPR 10,000,000,000........................................................................16
 Issued Capital NPR 8,055,693,000..................................................................................16
 Paid Up Capital NPR 8,055,693,000...............................................................................16
3.1.5. Board of Directors.........................................................................................................17
3.1.6. Management Team.......................................................................................................18
3.1.7. Organization Chart........................................................................................................18
3.1.8. Customer Centric Business Model.................................................................................19

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 3.2. Products and Services provided by MBL...............................................................................20
3.2.1. Internet Banking............................................................................................................20
3.2.2. MBL Mobile Money (M3)..............................................................................................20
3.2.3. MBL Dollar Prepaid Card...............................................................................................21
3.2.4 Branchless Banking (BLB)................................................................................................22
3.2.5 ATM................................................................................................................................22
3.2.6. Credit Cards...................................................................................................................22
3.2.7 Visa Credit Card..............................................................................................................24
3.2.8. Insta Pay Facility............................................................................................................25
3.3 Machhapuchchhre CSR Activities..........................................................................................26
CHAPTER - IV..................................................................................................................................28
ANALYSIS OF ACTIVITIES DONE/PROBLEM SOLVED........................................................................28
4.1. Digital Banking Department (DBD).......................................................................................28
4.1.1. Customer Counseling.....................................................................................................29
4.1.2. Taking Approval.............................................................................................................29
4.1.3. Processing of VISA Credit Card......................................................................................29
4.1.4. Convincing Customers...................................................................................................29
4.1.5. Filing and Documentation.............................................................................................29
4.1.6 Instructing......................................................................................................................30
4.1.7. Handling and Making Telephone Calls...........................................................................30
4.1.8. Other Activities..............................................................................................................30
4.2. Problems Identified and Solved............................................................................................30
4.2.1. Communication problem...............................................................................................30
4.2.2. Grievances handling......................................................................................................31
4.2.3. Unsystematic handling of things...................................................................................31
4.2.4. Hesitation of Customers................................................................................................31
4.2.5. Problem-related to the change of rules and regulations...............................................31
4.2.6. Research........................................................................................................................32
CHAPTER - V...................................................................................................................................33
CONCLUSION AND LESSON LEARNT................................................................................................33
5.1. Conclusion............................................................................................................................33
5.2. Lessons Learnt......................................................................................................................33

viii
ix
 LIST OF TABLES

Table 1.1 Duration of Internship

Table 1.2 Activities Performed in Organization

Table 2.1 Classification of Banks in Nepal

Table 3.1 Management Team of Machhapuchchhre Bank Limited

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 LIST OF FIGURES

Figure 3.1 Board of Directors of Machhapuchchhre Bank Limited

Figure 3.2 Top Level Organizational Structure of Machhapuchchhre Bank Limited

xi
 ABBREVIATIONS

ABBS=Any Branch Banking Service

ATM=Automated Teller Machine

BBA=Bachelor of Business Administration

CSR=Corporate Social Responsibility

DBD=Digital Banking Department

EMI= Equated Monthly Installment

IT=Information Technology

KYC=Know Your Customer

MBL=Machhapuchchhre Bank Limited

NRB=Nepal Rastra Bank

TU=Tribhuvan University

xii
 CHAPTER - I

INTRODUCTION

1.1 Background
The BBA program has incorporated Two month internship program with a view to
developing students’ skill in object-oriented business management, capable of
understanding and solving real life business related problems. Internship is an exclusive
aspect of education that integrates study with planned and administered career-related
work experience. Students also learn job seeking and job holding skills, and, as a result,
gain maturity, professionalism, and confidence.

The internship is done in Machhapuchchhre Bank (MBL), Lazimpat Head office. The
report entitled “Digital Banking Activities of Machhapuchchhre Bank Limited
(Machhapuchchhre Bank Limited, Head Office Lazimpat Kathmandu)” is the outline of
the intern’s experiences and observations of Two month in digital banking departments at
the bank. The intern got the opportunity to apply his theoretical knowledge in the vast
practical world. The topic is chosen to examine and learn the activities of Digital banking
department. By this, the intern got to learn about the general banking function, its
procedures, various banking terminologies, rules and regulations. It also helped in
developing interpersonal skills, patience, and requirement of displayed emotion and
harmonious relationship with the customer.

The report has discussed how the bank operates their activities with their customers. It
furnishes details of work done as an intern in Digital Banking Department (DBD), the
various activities done in DBD works as a bridge between customers by providing digital
product and makes their daily life easier. Digital department is there to provide new digital
products by observing market. It assist different institutions and individuals with its tools
and instruments. This is direct or indirectly beneficial for bank as well as users. The
various new and innovative products or services designed are to be brought to the

1
awareness of the bank customers through this department. This digital product consists of
marketing skill to convey people to accept their innovative product.

2
1.2. Objectives
The primary objective of this internship is to gain valuable insights into the business
sector, more specifically the banking industry in addition to this another major purpose is
also to relate the theoretical knowledge with the practical experience and to enable us to be
more prolific in acquiring the real life techniques of achieving results through both
individual effort and team building along with the knowledge gained from the academic
environment. The general objectives of the study are mentioned below:

 To understand the working procedures of Digital Banking Department of MBL.

 To understand the real life working culture and practices of MBL.

The other specific objectives of the study are:

 To examine different digital product and services offered by MBL (student
credit card, mobile banking, QR, Instapay, POS, Electronic Money (E-
Money).
 To identify the various activities done under the “Digital banking
Department” (merchant selection, MEMO final).
 To identify the risk/ status related to online banking of MBL.

1.3. Methodology
Research methodology is a systematic investigation on a particular subject matter. It is a
study of material and source in order to establish facts and reach a new conclusion. It is
concerned with the various methods and techniques used in the process of research studies.
Data for this report were gathered from both primary and secondary source of information
collected through the period of internship.
1.3.1 Organization Selection
Selection of organization for internship program is always a crucial task. Being a student
who has specialized in Finance courses in the Seventh and Eighth semester of our BBA, I
had to select a Customer facing institution which could help me broaden my spectrum of
knowledge about the banking, business and financial sector. So I decided to choose
Machhapuchchhre Bank Limited to accomplish my internship. I thought that it would give
me an opportunity to realize my theoretical knowledge into practical field.

3
In order to approach the bank, the requirements were the recommendation letter from the
college and curriculum vitae. After screening my CV by the authority of Human Resource
Department (Head Office), I was duly selected as an intern for its Head office. So I started
working there from 13th June 2019 to 15th August 27, 2019.

1.3.2 Placement
During the internship, I was placed in the Digital banking Department (DBD) at the
LAZIMPAT Head office. I was required to handle all the activities of the department under
the guidance and supervision of Mr. Rijan Karmacharya the DBD In charge. In addition to
him, the other staffs were equally cooperative and helped me to learn the activities of the
department. The LAZIMPAT Branch was established on 2000 A.D where there are
altogether 15 staffs working over there.

1.3.3. Duration of Internship

According to the Faculty of Management (TU) we are required to do the internship for a
standard of duration of two month i.e., 7 weeks. So I also worked at MBL 7 weeks. I
worked the entire period in a single department i.e., Digital Banking Department. The
following table illustrates the duration of my internship.

Table 1.1

Duration of Internship

Weeks
S.N Departments
1st 2nd 3rd 4th 5th 6th 7th
1 Digital Banking √ √ √ √ √ √ √
Department(DBD)

1.3.4. Activities
During the internship I got the opportunity to perform different activities of the
department. The first 2-3 days I spent gaining information from the staffs of Department,
and then after knowing that, I spent in the DBD where I had to communicate and convey
with the customers with various information. I also had to help them filling up their Credit
card, debit card opening form, I was placed in the over section of DBD (i.e. Mobile

4
banking, Credit card, Debit card, QR/fonepay, Instapay, POS) where following tasks are to
be performed:
Table 1.2

Activities Performed in an Organization

Name of the department Types of activities Performed

 Taking approval from DBD (In

charge, Head, Chief, BM and CEO)
 Proper counseling to the new as well
as existing card holders with
politeness.
 Informing Customer or Merchant
about different types of Digital
product
 Convincing new customer to use
credit/debit card
 Convincing Merchant to operate QR
and POS machine.
 Convincing customer to buy product
through Instapay by linking Credit
Digital Banking
card.
Department  Timely issuance of Digital products.
 Instructing customer or merchant use
of Mobile banking, POS machine,
digital Cards, online banking, QR
scanning Insta pay process and
formalities.
 Maintaining proper Digital records of
card holders, Insta user, and
merchants.
 Proper filing of Card holders as well
as Merchant forms.
 Informing the customers about Credit
5
 due payment after 30, 60, 90, 120
days And so on.

1.4 Limitations
Following are some of the major limitations of the study.

 As the report is prepared under the experience of seven week so generalization

cannot be done.
 This report may not be applicable to other organizations of similar kind.
 It does not provide the detail view of overall functioning of the bank.
 This study is done by only considering two departments of the organization in
general.
 The study was confined to only one financial institution. Thus, cross sectional
analysis and comparative study of different organization of the industry was not
possible.
 Due to confidentiality maintained by the bank some of the information regarding
bank were not available in detailed.

6
 CHAPTER - II

INTRODUCTION OF THE BANKING INDUSTRY

2.1. Concept of Banking

Bank is a financial institution which deals with money Bank can be defined as the financial
intermediary between depositors and entrepreneurs. The intermediation takes place when
banks accept deposits from the general public, corporate bodies, and private organizations
and deploys those deposits for profitable determination in the form of loans and advances.

A bank is a sensitive sector of the industry because it plays with the public money. The
primary operating activity of any bank is to gather fund in the form of deposit from the
surplus sector of the economy and transfer this collected fund to the deficit unit of the
economy in the form of loans. The bank appeals deposits from various investors by
providing certain rate of interest, investing the accumulated funds as loans to others who
are in need of fund by charging slightly higher rate of interest than they provide to the
depositors. Thus, bank acts as an intermediary who channels the gap between the savers
and users.

According to World Bank, "Banks are the financial institutions that accept funds in the
form of deposit repayable on demand or short notice."

Today banking is a vague term, it does a lot more than deposits and credits, like remitting
of money, guarantee, letter of credit, controlling, payment, other agency functions,
monetary activity of the country, etc. are also the foremost functions of bank.

2.2. Evolution of Banking

The concept of banking is not a modern concept. This concept had started to evolve in the
brilliant human mind immediately after the humans were able to realize and develop
money. Earlier the moneylenders and the landlords perform the banking activities as the
informal banks but later the activities of these people are formalized and the concept of
bank as an institution had emerged.

The early banking however is closely associated with the business of money changing; the
origin of the banking in the modern sense was started from Italy. The term "bank" is
7
derived from the Latin word "bancus" and Italian word "banko" meaning the portable
benches or counters over which the money changer comes on. French word "banque"
which means a "bench" and German word "bank" which means Joint Stock Company. In
most simple form, banking i s as old as authentic history. The early bankers, The Jews in
Lombardy, transacted third business at benches in the marketplace. When they were unable
to meet their liabilities, the depositors used to break their benches and the term bankrupted
was deprived. (Thapa & Neupane, 2013).

In ancient Greece, the famous temples Delphi and Olympia served as great depositories for
people surplus funds and these were the centers of money lending transactions. Indeed, the
traces of rudimentary banking were found in the Chaldean, Egyptian and Phoenician
history. The development of banking in the ancient Rome roughly followed the Greek
pattern. Banking suffered oblivion after the fall of the roman empire after the death of
emperor Justinian in 565 AD and it was not until the revival of trade and commerce in the
middle ages that the lesson of finance was learnt a new from the beginning. Money lending
in the middle ages was however largely confined to the Jews since the Christians were
forbidden by the cannon law to indulge in the sinful act of lending money to others on
interest. However as the hold of church loosened with the development of trade and
commerce about the 13th century Christian also took to the lucrative business of money
lending thereby entering into keen competition with the Jews hither monopolized the
business.

The bank of Venice, established in 1157 A.D is supposed to be the ancient bank.
Originally, it was not a bank in the real sense being simply an office for the transfer of
public debt. Subsequently, Bank of Barcelona (1401) and Bank of Geneva (1407) were
established. The ‘Bank of England’, first English Bank was established in 1694 A.D.
Banking institutions have then changed in character and contents to the further extent. The
development of the commercial banks can be traced back to the 19th century. During this
time, the banks turned their attention away from money changing business to many
important jobs that come in the wake of industrial progress. The 20th century observed the
development of various banking institutions highly specialized and sophisticated,
particularly in the USA and the UK. Today organizations like IMF, ADB etc. are
influencing the modern banking. Coming nearer, the ‘Bank of Hindustan’ was the first

8
commercial bank of India which was established in the year 1770 by an English Agent in
Calcutta.

The modern economic system cannot function without banks. According to the modern
concept, banking is a business that not only deals with the borrowing, lending’s and
remittance of funds but also important instrument for forecasting the economic growth.
Presently, there are various types of banks, which are established for instance industrial
banks, commercial banks, agricultural banks, joint stock banks, and co-operative banks
with different purpose.

2.3. Origin and Evolution of Banking in Nepal

The development of banking system in Nepal is not so long in comparison with the
neighboring countries. As in the other countries, goldsmiths and landlord were ancient
money lenders and depositors of Nepal. When the history is traced, it can be found that the
existence of banking practices started i the eighth century. According to Nepalese history,
in 780 B.S. Gunakama Dev, the ruler of Kathmandu reconstructed Kathmandu town by
collecting funds from people. The banking history is relatively new even though the
numbers of bank can be found operating in Nepal. (Thapa & Neupane, 2013).

A merchant named Sankhadhar paid all the debts of people and established Nepal Sambat
for the remembrance of that occasion in 80 AD. Likewise, Jaysthiti Malla classified the
people in four classes and 36 castes by their occupation. One of those castes who were
involved in money lending business at that time named as ‘Tanka-Dhari’ during the Prime
Ministership of Rannodip Singh. The establishment of 'Kaushi Tosha Khana' during the
regime of Great Prithivi Narayan Shah and 'Tejrath Adda' during the Prime Ministership of
Rannodip Shah around 1877-1993 B.S were the banking agency of those times and can be
regarded as the initial step towards the origin and establishment of banking sectors in
Nepal. From this office the government distributed salary to their employees and it
provided loans to government employees at 5% of interest rate against the security of gold,
silver, etc. but it didn’t collect the deposit from public.

After a long period, the government started to trade with India and Tibet. And the various
indigenous bankers handled even the trade because the transfer of the money could be
safely made only through these bankers. This was even strongly supported by the situation
caused during 1934 earthquake, where there was a need of finance for the reconstruction of
9
works. Reviewing these situations, the Udyog Parishad (Industrial Development Board)
was constituted in 1936 AD. A year after its formation, the Udyog Parishad formulated the
“company act” and the “Nepal Bank Act” which established the Nepal Bank Ltd. with the
technical cooperation of the Imperial Bank of India, as the first commercial bank of Nepal.
Before 1956, "Sardar Muluki Adda" (local treasury of the government) issued currency
notes and the foreign exchange reserves of Nepal were maintained by Reserve Bank of
India. During that period the Indian currency along with the Nepalese currency was
circulating in the economy. Having felt a need of central bank to control and direct the
commercial bank and help the government for making monetary policies, Nepal Rastra
Bank was set up in 14 Baishak 2013 B.S. The NRB mainly focused on eliminating dual
currency system prevalent in Nepalese market.

Since Nepal Rastra Bank could not handle the responsibilities of both central and
commercial bank, the need of new bank emerged. To fulfill the growing credit
requirements of the country the Commercial Bank "Rastriya Banijya Bank" was
established in Bhadra 2022 B.S. Similarly in 2016 B.S, Nepal Industrial Development
Corporation (NIDC) was established with the hope of uplifting the industrial sector of
Nepal. It granted long term loands, which could not be provided by the industrial banks. In
2024 B.S. Agricultural Development Bank (ADB) was established with the objective of
developing agricultural plants and machineries.

At present there are many joint venture banks which are running successfully in a
competitive environment. His Majesty government deliberate policy of allowing foreign
joint venture banks to operate in Nepal basically targeted to encourage local tradition
commercial bank to enhance their capacity through competitions efficiency mechanization
modernization, computerization and prompt customer services. Consequently, Nepal Arab
Bank (presently Nabil Bank) was established in 1984 A.D. Nepal Indosuez Bank presently
known as Nepal Investment Bank was established as a joint venture between Nepal and
France in 1984 A.D. Nepal Grindlays Bank (presently known as Standard Chartered Bank)
was established in 1987 A.D. as the country followed economic liberalization; there was
massive entrance of foreign banks in Nepal. Himalayan Bank as a joint venture with Habib
Bank Limited of Pakistan was established in 1933 A.D. Likewise, Nepal SBI Bank as a
joint venture with State Bank of India was established in 1933 A.D. (Thapa and Neupane,
2013). At present, the banking sector is more liberalized and there are various types of the

10
bank working in the modern banking system. This includes central, commercial, and
development banks.

2.4. Types of Bank and Financial Institutions

After the restoration of democracy in Nepal there has been tremendous development in
banking sector. The economic and financial reform policies undertaken by the government
have increased both number of banks and the types of services offered. For the purpose of
regulation and control, NRB have divided the depository financial institutions into four
classes on the basis of minimum paid up capital requirement and functions. In Nepal, Bank
and Financial Institution Act 2063 has classified bank as Class A, B, C and D. Class ‘A’
licensed institution includes Commercial Bank, Class ‘B’ licensed institution include
Development Banks, Class ‘C’ licensed institution includes Financial institution and Class
‘D’ licensed institution includes Cooperatives and financial institution licensed for Class D
by Nepal Rastra Bank.

Table 2.1
Classification of Banks in Nepal
S.N. Category Name No. of operating banks

1. Class A Commercial Bank 28

2. Class B Development Bank 33

3. Class C Finance Companies 25

4. Class D Micro Finance Development Bank 65

Source: NRB, Publications and Reports, 2075

2.5. Role of Banking Industry in Economy

Banking 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.
The roles performed by the banking industry in an economy can be presented as follows:

11
2.5.1. Credit generation
Banks and the financial institutions play very substantial role in providing the credit
requirements of the overall society. It generates credit to the credit deficit units of the
economy through the funds that comes to the banking mechanism. The generated credit is
used in the productive doings in the economy.

2.5.2. Fund mobilization

Deprived of the existence of an intermediary mechanism like the banking industry, the
funds existing to a unit of the economy remains immobilized. The banking industry
collects funds in the form of deposits from surplus units and delivers the funds to the
deficit units.

2.5.3. Generate employment opportunity

Banking sector promotes industry, trade, and investment. It stimulates overall economic
activities in the economy through funds mobilization and promotes industrial development.
The banking sector itself requires various types of employees for its own functioning.
Thus, banking sector generates employment opportunity.

2.5.4. Investment opportunity generation

Banking industry is a very impending investment opportunity in the economy. From the
risk free investment asset like the treasury bills to the riskier assets like stocks and bonds
and to the additional risky assets like warrants an individual and the institutional investor
gets the opportunity to generate income from their resources.

2.5.5. Availing access to the resources

The opportunity to get access to the financial resource like the funds is possible with ease
only due to the banking industry and its mechanism. People get access to the financial
resource through the banking system and its mechanism.

2.5.6. Smoothing of trade and commerce functions

Trade and commerce are the prominent factors that keep. A modern bank benefits its
customers send funds to anywhere and receive funds from anywhere in the world. A well-
developed banking system provides various attractive services like mobile banking,
internet banking, branchless banking, debit cards, credit cards, etc. these kinds of funds
services fast and smooth transactions.

12
2.5.7 Functions of Commercial Banks
The functions of commercial banks are divided into two categories:

2.5.7.1. Primary Functions

The primary functions of a commercial bank include:
 Accepting deposit
 Advancing loan
 Discounting bill of exchange
 Transfer of money

2.5.7.2. Secondary Functions

The secondary functions of a commercial bank include:
 Issuing letters of credit, travelers' cheques, circular notes etc.
 Undertaking safe custody of valuables, important documents, and securities by
providing safe deposit vaults or lockers
 Transferring money from one place to another and from one branch to another branch
of the bank.
 Standing guarantee on behalf of its customers, for making payments for purchase of
goods, machinery, vehicles etc.
 Collecting and supplying business information.
 Issuing demand drafts and pay orders
 Providing counter guarantee
 Conducting Research
 Providing reports on the credit worthiness of customers.

Thus, the primary and secondary functions executed by bank are the indispensable to meet
the overall objectives of the bank. The bank also provides various agency services. Agency
services are those services which are rendered by commercial banks as agents of their
customers. They include things like collection and payment of cheque and bills on behalf
of the customers, collection of dividends, interest and rent, etc. on behalf of customers and
so on.

13
2.6. Present Situation of Banking Sector
Presently the banking sector is developing 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. Talking about its life cycle it is at its fullness. Banks
are using several new technological advancements to deliver timely fastest and economical
services to the customers.

With a motive to remain competitive, banks are seen to be increasingly encouraging

business houses to transact with them. This has led to a creation of the large volume of
unutilized limits with the bank and in order to get a huge piece of the pie banks are
increasingly accepting risks, which they otherwise would not have taken. The unyielding
competition has also led the banks to accept collaterals that are more risky and unsecured.
The volume of loan against the hypothecation of stock, receivable and other assets are on
the rise. In the absence of hypothecation in the current assets, the risk of over financing is
eminent and banks are exposed to a higher degree of risk.

Banks with the collaboration of other financial institutions, IT and other organization are
always trying to appeal the customers. The different ages of banking sector elucidates the
improving current scenario of banking. It can be summarized as in following points:

 Alteration from old-style book keeping system to computerized system for keeping
records.
 Use of various financial tools and software like NEWTON, PUMORI, FINACLE for
record keeping and networking.
 Emergence of Management Information system (MIS) in banks for database financial
analysis research etc.
 Shift to real estate investment housing and other several schemes but with the stiffened
policy of central bank it is slowed down.
 Use of electronic tools for banking like ATM cards, Credit cards, Any Branch Banking
System (ABBS), web remit, Swifts e-banking, mobile banking, etc.

2.7. Opportunities and Challenges faced by Banking Industry

Opportunities and challenges are the uncontrollable factors that affect the functioning of
the bank. The bank must be able to scrutinize this external force and respond accordingly.
Opportunities for a bank can be appropriate law and banking rules and regulations
14
provided by the government, increasing the remittance from and within the countries,
improving banking habits of the citizens, introduction of innovation and technology in to
banking industry etc. Customers now days are becoming financially aware and they are
function about the way that can help then mobilize their savings. Please provide a great
opportunity for the bank to gain access to more customers for increasing their area of
operation.

Challenging for banking industry arise from domestic conflict, skilled and competent
human resources, rivalry among existing banks, threat of new entrants and substitutes, etc.
This may adversely affect the operation of the bank. Bank must try to critically analyses
this challenges and prepare itself to convert it effect into positive result as far as possible.
The changes in the paid up capital by the Nepal Rastra Bank time to time also poses banks
to a great threat.

In context of Nepalese banking industry, the opportunities arise from the advancement of
technology; deregulation and liberalization; investment opportunities in various economic
sectors etc. Also, Nepalese banks can explore into rural market through innovative and
convincing products the major challenges faced by Nepalese banks is political instability ,
burning issues of money laundering and terrorist financing, cybercrimes, etc.

Moreover, globalization may offer both opportunities and threats to Commercial banks.
Due to globalization, Nepalese banks may have to compete at international level.
Nevertheless, the bank can reap the benefits from technology transfer, accessibility to
global markets, etc. arising out of globalization. Similarly, kind of mergers and acquisition
main pose it as well as opportunities tour place commercial bank.

15
 CHAPTER - III

INTRODUCTION OF MACHHAPUCHCHHRE BANK LIMITED

3.1. Background of the Organization

Machhapuchchhre Bank Limited was registered in 1998 as the first regional commercial
bank from the western region of Nepal and started its banking operations from Pokhara
since year 2000.

The Bank facilitates its customer needs by delivering the best of services in combination
with the latest state of the art technologies and prudent international practices. The Bank is
the pioneer in introducing the latest technology in the banking industry in the country. It is
the first bank to introduce centralized banking software, GLOBUS BANKING SYSTEM
of Temenos NV, Switzerland. The bank provides modern banking facilities such as Any
Branch Banking, Internet Banking, Mobile Banking, Safe Deposit Locker facilities, Utility
Bill payment (Telephone & Mobile), ATM (VISA Debit Cards) to its valued customers.
Besides these, the Bank is providing 365 Days Banking and Evening Counter services to
the customers through many of its offices.

The Bank has been promoted by highly renowned Non-Residential Nepalese, prominent
business man and industrialists with a vision and dedication to provide the best financial
products and services in the most efficient and professional manner.

Now with a paid up capital of over 8.05 billion rupees, 131 Branch Offices, 112
Branchless Banking Units and 144 ATMs spread all across the country, it is one of the
fully fledged national level commercial banks operating in Nepal. It takes pride in having
its own buildings for its Head and Corporate Office in Lazimpat, and Branch offices in
Naya Bazar, Pokhara, Jomsom, Baglung and Damauli.

16
3.1.1. Vision
To become the bank of the first choice of the people.
3.1.2. Mission
To be one of the most preferred banks in Nepal, easily recognized as the bank which
satisfies and cares for its customers through quality service, innovative products,
professionalism and wide branch network, offering full array of financial services using
modern technology and with good corporate governance practices.

3.1.3. Value
With the objective of supporting the transition from rule based to attitude based behavior,
the Bank is functioning with the following five core values:
1. Integrity: Highest level of integrity / absolute honesty in all the business conduct and
dealings with customers, staff, regulators, and other stakeholders.
2. Accessibility: Easy accessibility through traditional as well as modern means of
communication.
3. Value Creation: For shareholders, customers, employees and the nation.
4. Quality Service: Through unmatched professionalism and excellent customer care.
5. Stewardship of Resources: With the feeling of ownership and accountability
3.1.4. Capital Structure
 Authorized Capital NPR 10,000,000,000

 Issued Capital NPR 8,055,693,000

 Paid Up Capital NPR 8,055,693,000

17
3.1.5. Board of Directors
MBL consists of the following board of directors with their respective names and
designation shown in the figure:

Figure 3.1 Board of Directors

18
 Dr. Birendra Prasad Mahato
(Chairman)

Mr. Jaya Mr. Ram Mr. Mr. Omesh

Mr. Roshan Man
Mukunda Bishowprakas Lala
K.C(Director) Shrestha
Khanal h Gautam Shrestha
(Independent (Public (Public (Public
Director) Director) Director) Director)
Gopi Krishna
Neupane(Directo
r)

19
3.1.6. Management Team
The management team of MBL consists of all the managers and department heads. They
are the one who supervise their sub-ordinates and guide them to accomplish their work
efficiently. Management of the organization plays a major role in achieving organizational
goal. As the board of directors formulated the vision, mission and objective for the
organization whereas managers formulate action plan to achieve those objectives. The total
no. of staffs of is 1159. The members of management team of MBL are represented in the
following chart:

Table 3. 1
Management Team of Machhapuchchhre Bank Limited
Name Designation

Mr. Suman Sharma Chief Executive Officer

Mr. Santosh Koirala Deputy Chief Executive Officer

Mr. Sarju Kumar Thapa Assistant General Manager

(Chief Credit Business Officer)
Mr. Narayan Prakash Bhuju Assistant General Manager
(Chief Technology Officer)

3.1.7. Organization Chart

An organizational structure defines how activities such as task allocation, coordination and
supervision are directed toward the achievement of organizational aims. A successful
organizational structure defines each employee's job and how it fits within the overall
system. The Organization structure of an organization is the relationship of authority and
responsibility flow. The organization structure of Machhapuchchhre Bank limited is as
follow:

20
 Board of Directors

Chief Executive Officer

Business Support Division Operation and Risk Business Banking Division

(Senior Deputy Management Division (Deputy General Manager)
GeneralManager) (Deputy General
Manager)

Chief Risk Officer Chief Financial Officer Chief Technical Officer

Figure 3. 1 Top level Organization Structure of Machhapuchchhre Bank Limited

3.1.8. Customer Centric Business Model

Machhapuchchhre Bank fully recognizes that today’s customers have less and less time to
visit its branches, even though their needs are greater than ever. Modern consumers are
moving away from conventional banking and are demanding more conveniences, better
service quality and technology-enabled ways to access services 24/7.

Machhapuchchhre Bank has begun to transform its business model to match this change.
This required a rethink of customer fundamentals and establishing stronger customer ties.
The Bank also communicates more frequently with current and potential customers and
this has helped it to better understand their needs for delivering products and services that
match the changing expectations and needs. The Bank's goal is to create an immediate
rapport with the new clients and encourage them to choose Machhapuchchhre Bank as
their primary bank. Meanwhile, the Bank's listening practices have continued to help it to
21
better understand its customers’ needs and respond promptly to their concerns. It is also
working towards becoming a 'Bank with a Voice' (Toll free call center), moderating its
branch network and expanding ATM coverage. The grievance handling system is also be
continuously improved to increase both efficiency and effective responses to complaints.

3.2. Products and Services provided by MBL

MBL aims in providing a comprehensive range of flexible and innovative products and
services. The bank has been constantly making efforts to provide “customer focused”
products with a view to meet the changing needs and expectations of the customers. The
products and banking services are as follows

3.2.1. Internet Banking

Internet Banking is a convenient way to do banking from the comfort of your home or
office. Avoid the queue or delays and try our simple and secure Internet Banking facility
for an unmatched online banking experience. Internet banking consists of following
services

3.2.1.1. General 
 Activity Log
 Change Password
 Change Profile
 Downloads
 Account Transactions
 Change of Address

3.2.1.2. Accounts
 Balances
 Account Statement
 Loans and Deposits

3.2.2. MBL Mobile Money (M3)

Bank on-the- go with a host of banking services offered across your mobile phone which
fulfill your all banking needs. With Machhapuchchhre Bank Mobile Banking discover

22
quick, simple and convenient way to take command of your bank account, on your mobile
phone. Features/Services of M3 Plus are mentioned below;

 Convenient way to access your account

 Internet/GPRS based
 Standing instruction of payment
 Customers can open fixed deposit from mobile
 Interbank money transfer service
 Safe and secure banking
 Mobile recharge, top-up, bill payment, e-wallet top-up, credit card bill payment
 MBL branch and ATM location can be easily detectable
 Information about forex and share market

3.2.3. MBL Dollar Prepaid Card – “International Credit Card”

MBL Dollar prepaid cards offer individual travelers the most convenient way to hold and
access currency abroad. It is a secured and convenient alternative to carrying physical cash
during travel. Customers' demands for FCY exchange facility and foreign currencies shall
be addressed effectively with MBL Dollar prepaid cards as physical cash may not be
always available with the Bank. It is a pre-funded card, one only spends the money loaded
on it which helps to minimize frauds and control spending habit of the card holder as well.
Some of the facilities available from MBL Prepaid Card;

 MBL Dollar Prepaid card is denominated in US Dollars and is valid worldwide

 Customers do not need to open an account for the issuance of prepaid card
 Cash Withdrawal
 Fast Cash
 Balance Enquiry
 PIN Change
 Payment of Purchase of goods/services at the merchant locations (through POS)
without any charge
 Purchase of goods/services through E-commerce site (as permitted by NRB)

23
3.2.3.1. Transaction Limit
a) For Cash withdrawal from ATMs
 Limit per transaction: USD 1,000 or (as per the acquiring bank)
 Limit per day: USD 2,000.00 or (as per the acquiring bank)
b) For purchase from POS terminals
 Limit per transaction: N/A
 Limit per day: USD 2,000.00
3.2.3.2 Acquiring Terminals
MBL Dollar Prepaid Card can be used on all ATM and POS terminals around the world
bearing Visa brand mark (except for Nepal, Bhutan & India), and E-commerce sites
accepting payment through visa cards.
(a) Fees and Charges:
As per Standard Tariff of Charges

3.2.4 Branchless Banking (BLB)

Machhapuchchhre Bank Limited is providing banking service through 112 BLB units
spread in different rural part of the country. The bank appoints business correspondent
known as agent, who perform transactions on behalf of the bank. The agent are provided
with the POS machine and magnetic chip card for operation of banking transaction.
Through these BLB units Bank is providing services like account opening, deposit
collection, cash payment, remittance and accepting loan application.
3.2.5 ATM
Machhapuchchhre Bank’s widespread network of ATMs makes it easy and convenient for
customers to bank 24 hours a day. With around 144 ATMs spread all over Nepal, we
ensure that you can easily transact from our ATM network. User-friendly graphic screens
and easy to follow instructions in both English and Nepali language of your choice makes

Our ATM Banking a smooth experience. Debit card issued by Visa and Union Pay are
accepted at all ATMs points of Machhapuchchhre Bank Limited. Machhapuchchhre Bank
provides you the opportunity to enjoy the benefit of electronic transactions (cash
withdrawal, purchase, fast cash transaction) by availing the following Visa card types:

24
3.2.6. Credit Cards
MBL Credit Cards offers a host of benefits, offers and features to cater to your needs. It is
a short-term credit facility provided to the customers against screening of customer against
pre-set credit scoring methods. MBL Credit Card is a card that provides its card holder a
revolving line of credit, the size of which is generally determined by the income source,
financial history and other requirements as per the regulations determined by the
Management of the Bank and Nepal Rastra Bank from time to time.
MBL Visa Credit Card (Domestic) is issued in Nepalese Rupees, which shall be valid in
Nepal and India only. These card can be used in Nepal and India for cash withdrawal
and/or for making purchase transaction through POS terminal.
3.2.6.1 Domestic Visa debit card - (valid in Nepal and India only)
Customers can apply for MBL Visa debit card – Domestic from any of our branches. This
card can be used in all ATMs and POS displaying Visa logo in Nepal and India.
Features:
• Valid in Nepal and India only
• Signature based debit card.
• Accepted widely and secure transaction.
• Supplementary cards can be issued to customer’s spouse, children or parents.
Transaction limits in Nepal:
• Cash withdrawal limit of NPR 100,000 per day
• Cash withdrawal limit of NPR 500,000 per month
• POS purchase/cash advance of NPR 100,000 per day
• POS purchase/cash advance of NPR 500,000 per month
Transaction limits in India:
• Cash withdrawal limit of INR 15,000 per day
• Cash withdrawal limit of INR100, 000 per month
• POS purchase/cash advance of INR 100,000.00 per day
• POS purchase/cash advance limit of INR 200,000 per month
3.2.6.2 International Visa debit card
Customer can now apply for MBL Visa Debit Card – International from any of our
branches. This card can be used in all Visa ATMs and Visa merchants worldwide.
Customer must meet the following criteria to apply for MBL

25
  Must have convertible foreign currency account in any of our branches
 Valid Visa and confirmed air ticket for travelling abroad
 Nepal Rastra Bank permit for foreign currency for travelling abroad
Features:
• Valid worldwide
• Signature based debit card.
• Accepted widely and secure transaction.
• Supplementary cards can be issued to customer’s spouse, children or parents

3.2.7 Visa Credit Card - “Short term quick loan”

MBL Credit Cards offers a host of benefits, offers and features to cater to your needs. It is
a short-term credit facility provided to the customers against screening of customer against
pre-set credit scoring methods. MBL Credit Card is a card that provides its card holder a
revolving line of credit, the size of which is generally determined by the income source,
financial history and other requirements as per the regulations determined by the
Management of the Bank and Nepal Rastra Bank from time to time.
MBL Visa Credit Card (Domestic) is issued in Nepalese Rupees, which shall be valid in
Nepal and India only. These card can be used in Nepal and India for cash withdrawal
and/or for making purchase transaction through POS terminal.
 Primary eligibility for issuing domestic card
 Nepalese national
 Not black list by CIC
 Minimum age 21 however card can issued to above 18 personal based on
their parents guarantee

 Eligibility to hold card

 Salaried individual: ( personal card / corporate card )
 Minimum salary 15000/-
 Annual salary certificate
 6 months bank statement to card limit more than 75000/-
 Latest pp, citizenship/passport
 Location of map

 Self employed
 Sole proprietor / partnership firm

26
  Share holders
 Company register certificate ( PAN & VAT )
 Latest pp, citizenship/passport
 Annual income statement

 Retired with pension

 Certificate / ID of retirement
 Latest pp, citizenship/passport
 Nepalese Citizenship
 Not black list by CIC

 Account holders / Depositors

 Minimum 6 month relation with bank
 At least 4 times credit transaction
 Nepalese Citizenship
 Not black list by CIC

 Property owners
 Copy of car / vehicle blue book
 Copy of land and building ownership certificate
 Nepalese Citizenship
 Not black list by CIC
 Students
 Copy of College Identity Card
 Copy of College Tuition Fee
 Nepalese Citizenship
 Not black list by CIC
 Minimum age 21 however card can issued to above 18 personal
based on their parents guarantee

3.2.8. Insta Pay Facility - “Sub product of credit card”

Insta Pay is a value added product of MBL under credit card for the financing of the
consumer durables. With Insta Pay, you get to purchase varieties of home appliances,
electronic gadgets, furniture, jewelries, and many more.  
 Encourage credit card holder to use their card for high value
transaction
 Increases the spending volume
 EMI ranging from 6 month to 5 years

27
  Products and services under MBL Insta pay

 Purchase of Home Appliances

 Purchase of Electronic Gadgets
 Purchase of Holiday packages
 Purchase Furniture and Furnishing items
 Purchase Gold and Diamond Ornaments
 Purchase Bike and Scooters
 Payment of Insurance Premium

3.3 Machhapuchchhre CSR Activities

Since the MBL established, it always been a part of CSR, some of the contribution are
mentioned below;

 Provided financial support to Dhangadhi Sub-Metropolitan Disaster Management

Fund for relief, rescue and reconstruction work for the storm affected area. Massive
Storm on June 6, 2019 had caused a huge damage to the private and public
properties across all 19 wards of Dhangadhi Sub-metropolitan affecting around
4,724 households.
 Machhapuchchhre Bank Limited have constructed a Shoe Locker House and
Drinking water taps in order to facilitate the visitors of Pashupatinath Temple and
handed over it to Pashupati Area Development Trust (PADT).
 Previously, the Bank had also constructed Locker House to keep personal
belongings of the visitors in the same premise.
 Have provided financial aid of NPR 11 Lakh to Nyaya Health Nepal (NHN) for
supporting its Community Healthcare Program at Achham. NHN has been running
community health program and is currently supported by a team of dedicated
Community Health Workers (CHWs) who performs triage, run group community
health initiatives in the rural districts.
 Machhapuchchhre Bank Limited (MBL) has handed over Disaster Management
Equipments worth NPR 5.5 Million to Nepal Police during a ceremony organized
at Nepal Police Headquarter.
 Speaking at the ceremony, Inspector General of Police (IGP) Mr. Sarbendra Khanal
of Nepal Police told that the rescue equipment would help the Police officials/staffs
28
 working in rescue operations in their rescue efforts and expressed his gratitude
towards the Bank for providing the equipment.

 Have conducted tree plantation program around Narayanchaur, Naxal area (around
MBL Naxal Branch Premises) under joint effort from Pragatishil Dara Sudhar
Samiti (PDSS) and Kathmandu Metropolitan City, Ward-02.  Have handed over an
Ambulance purchased with the joint effort and contribution from MBL, Bhojpur Kot Sewa
Samaj and the locals of Kot. The program had been co-hosted by MBL and Bhojpur Kot
Sewa Samaj. 

 Machhapuchchhre Bank Limited, Kanchanpur Branch has donated Food Items to

the Women and Aged Service Center. Donated quantity is adequate to 63 people
living under conservation in the centre for 6 months.

29
 CHAPTER - IV

ANALYSIS OF ACTIVITIES DONE/PROBLEM SOLVED

During the internship at Machhapuchchhre Bank Limited the intern got an opportunity to
engage in the real taste of the bank. This chapter mainly focuses on the major activities of
Digital Banking Department done by the intern.

4.1. Digital Banking Department (DBD)

A digital bank represents a virtual process that includes online banking and beyond. As an
end-to-end platform, digital banking must encompass the front end that consumers see, the
back end that bankers see through their servers and admin control panels and
the middleware that connects these nodes. Ultimately, a digital bank should facilitate all
functional levels of banking on all service delivery platforms. In other words, it should
have all the same functions as a head office, branch office, online service, bank cards,
ATM and point of sale machines.

Digital banking is the digitization (or moving online) of all the traditional banking
activities and programs that historically were only available to customers when
physically inside of a bank branch. This includes activities like:

 Checking/Saving Account Management

 Applying for Money Deposits, Withdrawals, and Transfers
 Financial Products
 Loan Management
 Bill Pay
 Account Services
Consumer preferences have quickly shifted to online and mobile devices, but
many financial organizations have had trouble shifting their onboarding experiences
online and to smaller screens.
In addition, until the past few years, banks were not envisioning the tremendous shift
in consumer behavior that occurred as a result of the millennial generation  now become
the largest consumers of financial products.

30
  Maintaining proper Digital records of card holders, Insta user, and merchants.
 Handling complaints and other queries they have about the operating Digital
product.
4.1.1. Customer Counseling
Customer counseling one of the vital function of DBD. It is the place where different
people come to get various information about the bank and its Digital products and
services. Generally, the intern had to provide information that is required by customers
regarding Credit card, instapay, POS machine, QR/fonepay and their queries for
regulations and documents required in various cases, queries about the arrival of digital
products. The intern also had to provide form to the customers and instruct them to fill up
the form.
4.1.2. Taking Approval
Each memo or proposal must be pass through the officers, and each credit card and digital
product users must be verified by officers. To make it happen interns have to go to each
officer’s cabin and Take approval from DBD (In charge, Head, Chief, BM and CEO).
4.1.3. Processing of VISA Credit Card
Credit Card are issued to the customers upon their request. The customers have to fill up
the application form requesting for a card. Intern had to help the customers fill up the form
and had to issue it to the customers. The intern had to register the Card holder details
information on excel sheet and filing it properly.
4.1.4. Convincing Customers
Convincing customer to buy product through Instapay by linking Credit card. People wants
to know more about new digital products, Intern have to inform customers with full of
formalities and requirement with showing its benefits
4.1.5. Filing and Documentation
Filing and documentation are very significant task that the DBD staffs do. The entire paper
work has to be done simultaneously to the computer work. The intern was responsible to
file the documents that has been approved by the officers. Documents include: card holders
details information like citizenship, Bank statements, financial statements, assets
documents etc.

31
4.1.6 Instructing
Instructing customer or merchant use of Mobile banking, POS machine, digital Cards,
online banking, QR scanning Insta pay process and formalities. It can be done through face
to face or telephone.
 Informing the card holders about Credit due payment after 30, 60, 90, 120 days
And so on.
 Reminding Credit card holder about the late due payment fee and interest rate
through phone call.
4.1.7. Handling and Making Telephone Calls
Through phone calls, the customers need to know information about the bank and also ask
different questions. Intern must handle the responsibility to handle the phone calls and
solve the query of the customers. If intern doesn’t know the answer then intern had to pass
the call to the officer. If the bank require any issues like requires any information or
document about the customer document or have to give any information like about the
mature date of fixed deposit intern had to call the customer and inform them.
4.1.8. Other Activities
The intern performed other various tasks as per the requirements and as per the authority
given by the in charge of DBD. Put necessary stamps of verification and cancellation,
document search, scanning and photocopying, etc.
4.2. Problems Identified and Solved
During internship program, although Machhapuchchhre Bank is able to meet the
challenging need of customers, there are some problems that have been analyzed and best
suitable measures have been taken to minimize the problem and solved them while
working at MBL. Following are some of the problems that have been identified and
solved:

4.2.1. Communication problem

Most of the customers are local with the minimum education qualification. They lack
proper knowledge regarding the terminologies used in different forms, vouchers, etc. as
forms are printed in English language.

To solve this problem as an intern, they were clearly made understood about the
terminologies used in simple and understandable language, which help them to fill up the
form correctly and within short period of time.
32
4.2.2. Grievances handling
It is the most problem among the problems. If it is not handled properly, it directly affects
the bank image; as a result customer are dissatisfied. They will stop transacting and stop
using digital product with the particular bank and switch to the other bank who are eagerly
waiting to provide them the service.

To solve this problem Digital banking department can play the important role, as this
department have to interact with their Merchant/customer. So, as a staff at DBD intern
interacts with customers by being keenly interested in listening their grievances properly
and try to solve them. If the problem is critical then it should be forwarded to DBD head
for solution.
4.2.3. Unsystematic handling of things
Unsystematic management leads to failure. Unsystematic handling of things is also a
problem but it is not a big problem if managed properly and timely it is it directly affects
the efficiency of banking activities. The problem was that when the customer visits us and
request for their Cards, POS, or for other information it would take a longtime to search for
the respective objects. To handle this problem Individual documents are alphabetically
arranged in a date wise format.
4.2.4. Hesitation of Customers
It is one of the problems faced by most of the bank nowadays. It is difficult to identify
since it is related with psychology aspects of customer (customer's behaviors).

To solve this problem taking initiation to ask customers regarding their problem frequently
and create the customers friendly environment so that they will feel at ease and themselves
convey their problem.

4.2.5. Problem-related to the change of rules and regulations

The rules related to the operation of the banks, the interest rates, the charges are revised
time to time to cope with the dynamic environment but the customers don’t easily accept
the change. Hence the DBD officer should inform the customer about the change, its need
and relevance to the organization which is really a hard and tedious job to perform.

The intern had to inquire about the changes time and again with the department head and
inform the customers.

33
4.2.6. Research
Department in charge assets intern to make some broad knowledge about the recent digital
product in market. I was lead to collect information related to Credit card, Fonepay / QR of
other banks. Which need to compare those products merchants, charges, services and have
to find gap.

34
 CHAPTER - V

CONCLUSION AND LESSON LEARNT

5.1. Conclusion
The seven weeks of internship at Machhapuchchhre Bank Limited, LAZIMPAT Head
office has developed some sort of confidence and commitment in developing the
interpersonal skills, professional qualities, and time management skills in the intern.

A digital bank represents a virtual process that includes online banking and beyond. As an
end-to-end platform, digital banking must encompass the front end that consumers see, the
back end that bankers see through their servers and admin control panels and
the middleware that connects these nodes. Ultimately, a digital bank should facilitate all
functional levels of banking on all service delivery platforms. In other words, it should
have all the same functions as a head office, branch office, online service, bank cards,
ATM and point of sale machines.

Digital banking is the digitization (or moving online) of all the traditional banking
activities and programs that historically were only available to customers when
physically inside of a bank branch.

With loyal customers and trusted brand name MBL has been able to establish itself as a
strong market participant. Machhapuchchhre Bank Limited is marching on the path of
success by running in profits as well as providing different services and features to its
customers. It is also successful in creating a goodwill and image in the minds of its
customers through the services provided. However, the bank should enhance the
ergonomics for the staffs and provide them better working environment reducing the
pressures and also should also increase the social media and television advertisements.

5.2. Lessons Learnt

The lessons learnt by the intern during the internship period are as follows;

 Learnt about the various banking terminologies used in bank in day to day activities
 The intern learnt about the authority and responsibility relationship among the various
managerial and subordinate level in the hierarchy of the commercial banks.

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 Procedures for forms fulfillment of credit card, ATM card, fonepay/QR, Instapay,
Learnt about the KYC form, its importance and requirements for filling the KYC form.
 Learnt about the requirements of documents needed for opening, closing and applying
for ATM card, credit card, fonepay, instapay.
 Learnt about various types of files and filing the various documents
 The negotiation skills also increased developing the softness and being more formal
while dealing with different nature of customers.
 To use the scanner for scanning account holders photo, account number and authorized
signature.
 Learnt about the behavioral skills while dealing with the customers
 Learnt about how the work decentralize among all staff of the department.
 Learnt about how employees gets plus point by working on their own field.
 Acquire knowledge about the real working environment and different aspects of
managerial practices in the commercial of Nepal.
 Learnt about how head office makes strategy and apply to each Branches.
 The importance of the proper organization culture and its effect on the professional
working environment. This relates to the effective communication skill, well done
manner behavior and the degree of social and professional environment between the
employees as well as with the customer.
 The customer of any business organization is the key to the success of the organization.
So, the organization should not forget its existing customer and try to retain its
customer as well as attract new customer.

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