Bank is the financial institution which provides financial service and it also deals with money and credit. It accepts deposits from the public and mobilizes the money to the productive sectors. Bank is the commercial institution which aims to earn profit with the different types of commercial activities. It is also called the financial supermarket. At present, it also provides remittance facility, exchange currency, bills of exchange, underwriting, bank guarantee etc.
In Nepal money transaction was started by “Tejarath Adda” in 1933 BS and it used to provide loans to the employee. It was the first informal transition of the banking in Nepal.Nepal’s formal banking began in 1994 with the establishment of Nepal Bank Limited which was the first commercial bank of Nepal. Nepal Rastra Bank (central bank of Nepal) was set up in 2013, which was approved by formal His Majesty Government (HMG) and the Rastriya Banijya Bank, another commercial bank was set up in 2022. Until 2040 Nepal’s financial sector was closed for joint venture of foreign banks. After 2040 the government gradually liberalized and opened up the sector, resulting in the rapid entry of foreign banks. Since then it has led to the establishment of good number of private banks. Nabil Bank was the first private commercial bank of Nepal. And we have 31 Commercial Banks till date.
Some banking history of Nepal
• Banking started in Nepal with the establishment of Nepal Bank Limited in 1994 BS (1937) which was initiated from the government sectors.
• Nepal Rastra Bank was the central bank of Nepal which was established in 2013 BS ( 1956) and it is located at Baluwatar, Kathmandu
