Outward Clearing

If the cheque of other bank is deposited in NIBL, then it should be send to respective bank for clearing, which is called outward clearing. It takes two days for outward clearing.

Draft Department

Draft is the mechanism for sending money from one place to another place. NIBL is also providing good facility of draft. Draft can be send both inside and outside the country. No documents need to submit for sending draft in Nepal and India. At NIBL, students are the major clients for draft. Draft can be sending far any purpose in Nepal and India but in other country it is only for study purpose. This department is responsible for performing following activities:

a) Demand Draft

NIBL has draft drawing arrangement with its correspondent banks in different countries. NIBL honors bank drafts drawn on/by various international banks denominated in major currencies like US Dollar, Euro,

Great Britain Pound, etc.

b) Telegraphic Transfer/ SWIFT

NIBL offers fast and reliable money transfer services through SWIFT.

Customers’ bank account with NIBL can be credited with remittance from anywhere in the world. The remitter has to mention the NIBL's SWIFT Address "NIBLNPKT" and the beneficiary details to transfer money to Nepal through NIBL. NIBL caters the need of customers to remit fund anywhere in the world, denominated in major currencies, through SWIFT.

c) Internal Transfer

NIBL offers the service of internal transfer. Customers can transfer their fund from one account to another account of the bank.

d) Good for Payment

Good for payment refers to the facility that bank guaranteed the payment to the person who provide fund to another who have account at NIBL.

4.4 Remittance Research and Development Department

During the period of eight weeks, I was given the chance to work in remittance department for one week. The main function of remittance department is to accept the fund transfer buy the migrant workers from abroad to the family back home.

During my one week in this department, I have learned to do the following activities:

4 Sending fax 5 Photocopying

6 Receiving fax and filing

Remittance is the main source of government revenue. Every year about two Arabs dollar import in Nepal from foreign country.

Nepal Investment Bank Limited (NIBL), operating under the guidelines set by The Government of Nepal and Nepal Rastra Bank (the Central Bank of Nepal), offers one of the safest and the most secured means of money transfer to Nepal. Remitters can send money to NIBL from any part of the globe through our correspondent banks, exchange houses and banks in the Middle East and using Prithivi Express, our in-house remittance software.

4.4.1 Medium for Remittance

There are two medium for remittance in Nepal; official medium and un-official medium. Official medium includes banking channels and un-official medium includes personal delivery i.e. Hundi, which is illegal medium of remittance.

NIBL offers account-opening facilities for Non-Resident Nepalese expatriates with zero balance. To open an account, submit the following documents at any of its

Correspondents:

- Application Form, duly filled.

- Three recent passport size photographs - The attested copy of your passport

How to send money?

1 Visit the nearest branch of our Remittance Correspondent 2 Fill up a form with the following details:

• The Remitter's full name and address

• The amount you are remitting.

• The full name, address, telephone number and account number (if available) of the person in Nepal who will receive the money

1 Customers will receive a secret Code that should be given to the beneficiary (person receiving money) in Nepal

How to receive money in Nepal?

2 Customers can collect their money on the same day from any of our branches and agents

3 Simply, visit NIBL’s nearest Branch/Agent with

• The secret code given to you by the remitter.

• The original passport, citizenship certificate, or any other identification issued by The Government of Nepal.

4.5 Trade Finance/Loan Administration Department

Trade finance/loan administration department, also called credit department

basically deals with the corporate loan. But also provide individual loan. During my one week in this department, bank did not provide any loan because of the end of the fiscal year. So I could not observe the lending procedures directly.

NIBL provides a large amount loan to the corporations. About 40% of the loan is provided to Todi Group (Rishi Exim Int’l Pvt.Ltd., varun Udhyog Pvt. Ltd., Vinayak Argo p. Ltd., Hanuman Metal p. Ltd., Harisiddi paints P. Ltd., etc.) Bank charge certain percent of interest depending upon the terms and conditions of loan.

Currently, various types of loan are provided by the bank; overdraft, term loan, education loan, home loan, trust receipt, bank guarantee, letter of credit, hire purchase, bill purchase, etc. bank requires the following documents from clients in order to provide the corporate loan:

1 Request letter

2 Financial statement (last 2 year P/L and B/S) 3 Bank statement (last one year)

4 Name of father and grandfather of the proprietor/shareholders 5 Registration certificate

6 VAT/PAN certificate 7 Income tax certificate

8 MOA/AOA (for private limited company only) 9 Broad resolution with borrowing power

10 Citizenship copy

11 Receivable statement (if applicable) 12 Stock statement (if applicable) 13 Title deed copy (if applicable)

14 Malpot receipt 15 Blue print 16 Four boundaries

17 Building approval letter 18 Building drawing

NIBL deals with both funded and non- funded loans which can explained below: