Account Closing

Customers do not open account only; sometimes they close the existing account.

Every day 3-4 customers come to the bank to close the account. They do so if they were not satisfied with the services provided by the bank. Another reason is increasing competitors. Customers should go through the following process to cancel their account:

1 Customers willing to close the account must fill up the form specifying the reason

2 Customers are asked to return the belongings like Cheque Book, ATM Card etc

3 Bank charge certain charge for account closing 4 Finally closed the account.

During the two weeks in CSD, I kept the record of number of customers opening and closing the account. The detail is presented below:

Table 4.2: Account Operations Account Operations No of Customers Account opening 279

Account Closing 27

Total 306

Account Operations

Account opening

91%

Account Closing

9%

Fig 4.2: Types of account at NIBL

During my two weeks at customer service department, out of 306 customers, 91% came for account opening and 9% came for closing account.

4.1.6 Customer Complaints

Some times customers will face the problem while taking the services of NIBL. I have conducted the survey about the problems faced by the customers. I have asked the respondents who came to the counter of the bank about the problem created from the services of NIBL. The detail is presented in the form of table and chart below:

Table 4.3: Customers Complaints

Customers’ complains No of Customers

Late delivery of ATM 12

Not friendly staffs 6

High renewal charge of ATM 4

No clear information 2

No provision for illiterate and sightless 1 Necessary for Introducer’s Deceleration 9

Total 34

Customers' complains

Above table and chart shows that most of the customers faced the problem related to ATM cards. Out of the total respondents, 16 respondents had the problem related to ATM; six respondents argued staffs are not friendly, two respondents responded that information provided by the bank is not clear. There is no provision of account for illiterate and sightless person (those who can not make sign). One respondent had this problem and nine customers responded that they can’t provide the introducer’s deceleration.

4.2 Foreign Exchange Department

From its name it is clear that foreign exchange department is responsible for exchanging foreign currency i.e. buying and selling foreign currency. Buying rate is differing from selling rate. Selling rate is slightly higher than buying rate.

a) Selling of Foreign Currency

Selling foreign currency means providing foreign currency for Nepalese currency. Customers should require different documents for exchanging foreign currency with Nepalese currency. But Indian currency can be exchanged without any criteria. For other currency following documents are required:

• Airway ticket for the respective country, whose currency is to be exchange.

• Photocopy of passport.

b) Buying of Foreign Currency

Buying foreign currency means providing Nepalese currency for foreign currency. Bank only buy the foreign currency from those who were already visited to the respective country. Without that bank will be unable to exchange foreign currency. Following documents are to be submitted by the customers for enabling the bank to buy foreign currency from them:

1 Return airway ticket from respective country 2 Photocopy of passport.

Bank does not charge any commission for exchanging foreign currency. The gap between selling and buying is the benefit for the bank. During my internship period, I found foreign exchange department very crowd.

Travelers Cheque

NIBL offers "American Express Traveler's Cheque" that is accepted worldwide.

4.3 Cash Department (Back Desk)

Cash Department (back desk) includes the following:

4.3.1 Cheque Clearing Department

In Cheque clearing department, the cheque from different banks including NIBL are presented for deposit. I have got the opportunity to stay one week in this department. Every day about 20-30 cheques were deposited during my one week in this department. For depositing the cheque, simply customers have to fill up the voucher with the amount of cheque. Once the cheque is deposited in the bank, if the cheque is of NIBL, his/her account is directly credited with the amount of cheque.

If it is of other bank, then it will be send to Nepal Rastra Bank for clearing. At NRB, all the banks who accept the cheque of other banks are presented for clearing it. At NRB there are separate desks for each institution. In the desk of NIBL, all the cheques of NIBL which are deposited in other banks are placed together. Then they are sending to NIBL which is called inward clearing. Those cheques are treated like normal cheque i.e. NIBL debit the amount of cheque of from the depositors’

account with the amount of cheque and inform to NRB. Then NRB pay cash to the depositor bank. Then after that bank credit the account of clients with the amount of cheque. Sometimes, NIBL will bounce its cheques collecting from other banks. In this case, the cheque is send to the bank where it is collected. Account holders have to pay Rs. 205 of the cheque is bounced. The reason for bounce of cheque can be pointed below:

1 Improper signature

2 Cheque post added (cheque is to be paid later) 3 Expired cheque

4 No endorsement stamp

5 Improper amount in words Types of Cheque Clearing

There are two types of clearing. They are: