1

CHAPTER I INTRODUCTION
1.1 Background
Customer service department is oriented towards customers and basically manages all the customers queries and if possible tries to solve at the front desk of the organization. In this department the major tasks involved are videlicet: Dealing with customers, opening and closing of accounts, handling incoming calls, providing accounts statement, issuing check books, providing Debit Cards to the customers, maintaining record of ATM card holders, providing e-banking facility, et cetera. Customer service department deals with handing the various customers queries, and their grievances. It also aims at gathering feedback about our banking financial services and promptly responding to their raised problems.

This internship report entitled FUNCTIONING OF CUSTOMER SERVICE DEPARTMENT AT AGRICULTURAL DEVELOPMENT BANK is prepared as per the partial fulfillment of the degree of Bachelor in Business Administration (BBA), Tribhuvan University. Being the student of BBA and specializing in Business and Finance the students are honored by the internship program under this curriculum. It helps the students develop their inner ability or the confidence level and the level of understanding to compete in this complex and sophisticated age. It also increases the ability of the students to tackle the business problems, to grasp the opportunities and to face the threats. In its totality, internship program teaches us the corporate culture, develops our public relationship skills, makes us competent and provides us an excellent working experience.

1.2 Objectives
Tribhuvan University covers subject of field report writing to provide the knowledge about the different aspects of organization, and to present the fact based report on investigation of a problem area of business operation. The main objective of this study writing is to provide the practical knowledge for the students during the course of learning. Besides these, the other specific objectives of the report can be shortlisted as follows:

To study customer service departments functioning at Agricultural Development Bank Limited.

To develop customer relationship skills, in order to facilitate the banking services as per the need of the customers.

To acquire and analyze the details and information about the activities of Customer Service Department intimately.

To be acquainted with the work challenges related to various work related issues and gain necessary skills to address those problems.

To relate theoretical knowledge with practical knowledge and get an outer exposure.

1.3 Methodology
Methodology refers to the various sequential steps in the study. A systematic method is required to pick out an actual result for any type of study. This report is based on secondary sources of data. Secondary Data:

The secondary information was mainly collected from the quarterly reports of banks, booklets, newspapers, websites and other published documents.

1.3.1 Organizational Selection

As per the rule of Tribhuvan University (T.U) every student of BBA 8 th semester has to work as an internee at any chosen organization. The internee can select the type of organization for his/her internship and submit a recommendation letter provided by the campus to the organization. After approval the organization then calls the internee and places him/her in the respective department. 1.3.2 Placement The internee took a recommendation letter from the campus, and submitted it to the branch manager of ADBL with a handwritten application along with curriculum vitae. The ADBL approved the internees request to join the bank for the internship programme and was provided with the date to join the bank for the same. During the eight weeks internship period, the internee was placed in the customer service department. Under this customer service department, the internee was placed in the front desk, remittance, and check clearing section. All the factors such as Discipline, attendance, regularity, interest towards the work, sincerity, behaviour, and the efforts that I made to understand the banking functions were closely monitored.

1.3.3

Duration of the Internship As per the requirement of the Tribhuvan Universitys BBA Curriculum, an internee has to complete eight weeks internship period in the work place. My duration of internship started from 3rd, Ashad 2070 and ended in 30th Shrawan 2070. During this

period, the internee came to learn about the working environment, working procedure and culture of the organization.

1.4

Limitations
The internship report is prepared based on the observations, experiences of the internee, informal interview with the staffs and the secondary data available on the internet. The limitations faced during the internship period and during preparation of the report are as follows. Time allotted for the study was limited to eight weeks so detailed analysis was not possible. All the functioning of the CSD could not be analyzed in detail due to the confidentiality policy of the ADBL. The selection of topic is specific. It cannot represent the whole aspect of ADBL. Validity of the report fully depends on the information provided by the concerned authorities. The report is depended upon secondary source of data provided by the bank so that the reliability of research depends upon the data provided. The study deals merely with ADBL the conclusions drawn from the study may not be applicable to that of other banks. The interpretation and conclusion were drawn within the limitation of individuals knowledge and judgmental abilities.

1.5 Organization of the study

This internship report has been organized into five chapters namely. Introduction Introduction to Banking Industry Introduction of Agricultural Development Bank Limited Analysis of Activities Done And Problems Solved Conclusion and Lesson Learnt

CHAPTER II INTRODUCTION TO BANKING INDUSTRY

2.1 Introduction
The term Bank is derived from the Italian word banco meaning bench. A bank is a financial institution where you can deposit your money. It provides a system for easily transferring money from one person or business to another. Using banks and the many services they offer saves us an incredible amount of time, and ensures that our funds "pass hands" in a legal and structured manner. A bank is a financial institution licensed by a government. Its primary activities include borrowing and lending money. Many other financial activities were allowed over time. For example banks are important players in financial markets and offer financial services such as investment funds. It act as payment agents by conducting checking or current accounts for customers, paying cheques drawn by customers on the bank, and collecting cheques deposited to customers' current accounts. It also enables customer payments via other payment methods such as telegraphic transfer, EFTPOS, and ATM. It borrows money by accepting funds deposited on current accounts, by accepting term deposits, and by issuing debt securities such as banknotes and bonds. It lends money by making advances to

customers on current accounts, by making installment loans, and by investing in marketable debt securities and other forms of money lending. The following definition can better signify the meaning of banking: Bank is an organization that provides various financial services, for example keeping or lending money. [Oxford Advanced Learners Dictionary, 2000]

According to Kent, A bank is an organization whose principle operations are concerned with the accumulation of the temporarily idle money of the general public for the purpose of advancing to other for expenditure. The term commercial bank refers to those who pull together the saving of the community and arrange their productive use and supply the financial needs of modern business by various means. They accept deposit form the public on the condition that they are repayable on the demand or on short notice. They are restricted to invest their funds in corporate securities and finance in fixed assets. Their activities are confined to financing the short term needs of trade and industry such as working capital financing. In addition, they grant loans in the form of credit card and overdraft. Commercial bank is a bank which operates currency exchanges transactions, accepts deposits, provides loan, performs, dealing, relating to commerce except the banks which have been specified for the cooperatives, agricultural, industrial of similar other specific objective. [Commercial Bank Act 2031 Section 2(a)]

Banking means accepting for the purpose of lending or investment of deposits of money from public repayable on demand or otherwise and withdraw able by cheque, drafts order or otherwise. Banking company means any company which transacts the business of banking. [Government of India, 1951] The main objective of commercial bank is to mobilize idle resources for productive use after collecting them form different places. The function of commercial bank is accepting deposit

namely fixed, current and saving account, safety of public money, remittance of money, letter of credit, guarantee, loans lending, locker facilities, foreign exchange, serving as agent of client, etc. Hence, commercial bank is profit oriented financial service institution which creates money, makes payment mechanism, extension of credit facilities and accepting bills of exchange of their constituents.

2.2 Development of Banking Industry in Nepal

The modern history of banking in Nepal does not have a long history. It is still in its infancy stage. It was flourished after financial liberalization policy adopted in 1980s. In context of development of banks in Nepal, it can be summarized in following three phases: Phase I In 1877 AD, Prime Minister Ranoddip Singh introduced financial and economic reforms. TejarathAdda was established at that time to provide credit facilities to the general public. Credit facility was given by TejarathAdda on the basis of collateral of gold and silver. Government employees would get credit at ease because government would pay them less to deduct the credit amount. Chandra Shamsher extended the services of TejarathAdda outside valley. TejarathAdda extended credit facilities to more and more general public and did not accept deposit from public. Due to this reason, TejarathAdda finally faced a crisis. People started borrowing money from lenders who charged a high interest rate and other dues. Although Kaushi Tosh Khana was established during the regime of PrithiviNararyan Shah, TejarathAdda is regarded as the foundation of modern banking in Nepal. However, it was the beginning of banking in Nepal. Phase II

In 1937, Nepal Bank Limited (NBL) with the co-operation of Imperial Bank of India came into existence. NBL played dual role of commercial bank as well as central bank until 26th April, 1956, on which date, Nepal Rastra Bank (NRB) was established. NBL was a semigovernment bank. RastriyaBanijya Bank (RBB) was established in 23rd January, 1966. Nepal Industrial Development Bank (NIDC) was established as a development bank in 1959 and Agricultural Development Bank (ADB) was established in 1968. Since 1984 the ADB has also been allowed to do commercial banking in selected urban areas with the aim to mobilize resources domestically and channel funds to the agriculture and rural sector. Nepal adopted financial liberalization policy in 1984 by amending Commercial Bank Act 1974. Liberalization was adopted to welcome private sector in banking industry and to increase competition among them.

Phase III The pace of financial liberalization actually started when the government allowed the entry of commercial banks in joint venture with foreign bank. As a reform measure initiated in the year 1984, government allowed ADB branches to conduct commercial banking business in the urban areas. A Credit Information Bureau (CIB) was established in 1989 under the aegis of Nepal Bankers Association with the objective of disseminating credit information among its member institutions. Nepal Arab Bank Limited (NABIL) was the first joint venture bank established in 1984 A.D., joint ventured with United Arab Emirates Bank. Then two other banks, Nepal Indosuez Bank Ltd. (Present: Nepal Investment Bank) with Indosuez Bank of France and Nepal Grindlays Bank Ltd. (Present: Standard Chartered Bank Nepal Ltd.) with Grindlays Bank of London were established in 1986 and 1987 respectively. Himalayan Bank Ltd. joint ventured with Habib Bank of Pakistan and SBI Bank Ltd. With State Bank of India were established in 1993 A.D. Nepal Bangladesh Bank Ltd. With IFIC (International Finance Investment and Commercial) Bank of Bangladesh was established in 1993 A.D. Bank of Kathmandu joint ventured with SIAM Commercial Bank Public Co., Thailand was established in 1995 A.D. Nepal Bank of Ceylon (Present: Nepal Credit and Commerce

Bank) joint ventured with Ceylon Bank of Sri-Lanka was established in 1996 A.D. Everest Bank Ltd. joined hands with Punjab National Bank as a joint ventured bank in1997 A.D. At present, there are 32 commercial banks, 79 development banks, and 79 finance companies.

2.3 Functions of Commercial Bank

In Nepal, the Commercial Banks perform the following functions: a. Accepting Deposits

This is the oldest function conducted by commercial banks. It accepts deposits in three forms. They are as current, saving and fixed deposit accounts. Deposited amount is repayable on demand or on short notice. Interest is provided in saving and fixed deposit accounts whereas in current account interest provision is not given. Customers of fixed deposit account are required to keep fixed amount with bank for a fixed period.

b. Providing Loans This is the second important function for commercial banks. It provides loans and advances from the money it receives from depositors. Different types of loan or credit facilities are provided to borrowers against tangible and intangible securities. Various types of loan such as education loan, vehicle loan or personal loan are given as per the loan need of customer.

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c. Agency Functions The commercial bank acts as an agency and performs variety of services on behalf of its clients. The bank makes payment of the cheques, draft and bills of exchange presented by the customers. It can also transfer money from one place to another through use of draft, mail transfer and telegraphic transfer on customers request. It also pays utility expenses on behalf of its customers. The banks on the request of its customers buy and sell a companys shares and government security bonds and also collects the interest on the same.

d. Credit Creation Commercial banks accept deposit and advance loan to make profit and survive in the business environment. Banks open current or loan account in the name of borrowers and allow them to withdraw required sum according to borrowers need. Therefore banks create credit by sanctioning loan or credit.

e. General Utility Functions The banks do some services known as general utilities services. It carries out foreign currencies transactions with central banks approval. Banks provides locker facilities for safe keeping of valuable documents. It also offers investment and merchant banking services. It gives economic and professional advices to its customers. It also issues travelers cheques on behalf of customers name.

f.

Foreign Trade Financing

Banks helps customers who deal with foreign trade. It facilitates export and import business by issuing letter of credit. It discounts the bills of exchange drawn by Nepalese exporters on

11

the foreign importers and enabled the exporters to receive money in the home currency. On the other hand, it also accepts the bills drawn by foreign exporters.

g.

Information and Other Services

Some banks provide regular bulletin on trade and economic conditions at home and abroad countries, and special reports on commodities and markets. They may also invite enquiries for those wishing to extend their trade and are able through their correspondents to furnish the name of reputable and interested dealers of goods and to advice on the appointment of suitable agents in some cases. On request, banks obtain information for customers, for business purpose, for confidential opinions on the financial standing of companies or industries at home or abroad countries.

CHAPTER III INTRODUCTION TO AGRICULTURAL DEVELPOMENT BANK LIMITED

3.1 Introduction

The Agricultural Development Bank, Nepal was established in 1968 under the ADBN Act 1967 with the main objective of providing institutional credit for enhancing the production and productivity of the agricultural sector in our country Nepal. The Land Reform Savings Corporation was merged with ADBN in 1973. Subsequent amendments to the Act empowered the bank to extend credit to small farmers under group liability and expand the scope of financing to promote cottage industries. The amendments also permitted the bank to engage in commercial banking activities for the mobilization of domestic resources.

12

Agricultural Development Bank Limited (ADBL) is an autonomous organization largely owned by Government of Nepal. The bank has been working as a premier rural credit institution since the last three decades, contributing a more than 67 percent of institutional credit supply in the country. Hence, rural finance is the principal operational area of ADBL. Besides, it has also been executing Small Farmer Development Program (SFDP), the major poverty alleviation program launched in the country. Furthermore, the bank has also been involved in commercial banking operations since 1984. The enactment of Bank and Financial Institution Ordinance (BAFIO) in February 2004 abolished all Acts related to financial institutions including the ADBN Act, 1967. In line with the BAFIO, ADBL has been incorporated as a public limited company on July 14, 2005. Thus, ADBL operates as a "A" category financial Institution under the legal framework of BAFIO and the Company Act, 2053.

3.2

Vision

To be a Mass-based Complete Bank serving from Urban to Rural.

3.3

Mission

To deliver comprehensive banking solution strengthening its extensive network.

3.4

Major Objectives

Nepal Bank Limited has the following objectives: To provide quality banking services, To adopt market driven strategy, To obtain sustained and competitive return on investment.

3.5

Corporate Conduct

13

In achieving its corporate objective in pursuit of its corporate mission and vision, ADBL will:

comply with all relevant legislation, codes of conduct and standards of good corporate citizenship in Nepal while maintaining full autonomy in the management of its operations;

conduct its operations in an open and transparent manner; put local resources to work for local development, serving the rural community and its aspirations;

provide a full and balanced rage of financial products and services that satisfies the needs of the rural population of Nepal, on a profitable and sustainable basis;

strive consistently to provide improved products and services to its clients at reasonable cost, using modern banking, information and communication technology in the most appropriate form to its clients needs;

be vigorous in building reputation for professionalism, competitive pricing, reliability and quality of service and innovation;

operate in accordance with best banking practice, acting with financial prudence and keeping in mind the need to balance profitability with asset preservation and liquidity and to safeguard depositor's funds;

work together with its employees to develop their capabilities to contribute to achievement of the bank's objectives, promoting excellence, rewarding achievement and providing them the opportunity to share in the bank's success;

develop mutually acceptable relationship with government in the pursuit of improvement in living standards in rural areas, while respecting best financial practices;

ensure that its activities contribute to the environmental stability and overall improvement of living standards in Nepal; and

14

judge the bank's success against the measures that include profitability, portfolio quality in terms of minimal arrears and non-performing loans, portfolio worth, total deposits, geographic outreach and public image.

3.6 Organizational Structure

3.6.1 Board of Directors

The Board of Directors is the apex body of the bank. It formulates policies as well as strategies and provides guidance to the management. The Board comprises a total of nine members; four members representing Government of Nepal and four members representing individual shareholders. Besides, one member is nominated by the Board as per the BAFIA. The Board is supported by Audit Committee and Governance SubCommittee in the area of internal control and good governance respectively.

The day to day operation of the bank is executed by the Chief Executive Officer. The Chief Executive Officer is closely assisted by four Deputy General Managers and 18 Division Chiefs. Moreover, Chief Executive Officer is supported by Assets and Liabilities Management Sub-Committee for various activities related to risk management. The bank has three-tier organization structure consisting of Head office, Regional offices (ROs) and field offices. Field offices are further categorized into three levels; main branch, branch and sub-branch depending particularly upon their volume of business. The head office is the policy making body at the top, field offices are implementing units at the bottom and ROs with monitoring and supervisory role are in between.

15

ADBL is also operating a Central Training Institute (CTI) at corporate level in Bode, Bhaktapur under Head Office Structure and five Regional Training Centers (RTCs) with residential facilities in five development regions. The CTI and RTCs conducts training and seminars particularly for enhancing abilities and skills of organizational members

Table 3.1: Board of Directors

Mr. Pramod Kumar Karki Chairman Nayabaneshwor, Kathmandu Tel: 01-4471259 (Res.) 01-248752 (Off.) Mr. Lok Darshan Regmi Member Joint Secretary, Ministry of Finance Tel: 01-4211355 (Off.) Mr. Ram Prasad Pulami Member Joint Secretary, Ministry of Agriculture Tel: 01-4211665 (Off.) Ms. Laxmi Devi Manandhar Member Samakhusi, Kathmandu Tel: 01-4353768 (Res.) Mrs. Mira Dhonju Member Dhumbarahi, Kathmandu Tel: 01-4438919 (Res.) Mr. Janak Raj Shah Member Baijanath-5, Achham Mr. Ramesh Kumar Mahat Member Samakhusi-29, Kathmandu Tel: 01-4353297 (Res.)

16

Mr. Chhetra Bahadur Sejuwal Member Chhandannath, Jumla Tel: 01-4314350 (Res.) Mr. Tej Bahadur Budhathoki Member Baneshwor, Kathmandu Tel: 01-4262690 (Off.) Mr. Dashrath Joshi Company Secretary Kusunti, Latitpur Tel: 01-4262620 (Off.)

3.6.2 Management Team

Table 3.2: Chief Executive Officer
Name Mr.Tej Bahadur Budhathoki Telephone 4262797,4262690 Email ceo.adbl@adbl.gov.np

Table 3.3: Deputy General Managers

Name Mr. Sagar Chandra Joshi Mr. Naresh Man Pradhan Mr. Hira Raj Nepal Functional Area Business Operation Human Resource Telephone 4262885 Email

4252356 / 9851040413 4263826

pranaresh10@gmail.com

CBS, Implementation, Monitoring

17 Mr. Upendra Bdr Karki Mr Anil Kumar Upadhaya (Acting) Service

Regional Office, Kathmandu

4485467, 4476282

anil.upadhyay@adbl.gov.np

Table 3.4: Division Chiefs

Division Company Secretariat Office of the CEO Branch Management Loan Risk Management Small & Micro Enterprise Development Planning Information Technology General Service Name Mr. Dasharath Joshi Mr. Hem Lal Shrma Mr. Bijaya Swar Mr. Chandan Kumar Shrestha Mr. Bishnu Aatreya Mr. Ujwol Acharaya Mr. Dilip Jung Shah Mr. Bhabindra Khatri Mr Mukunda Sharma Telephone 4262620 4262620 4263387 4223819 4250736 Email

4252353 4252354 4250737 4262613

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Finance & Account Human Resource Management Internal Audit & Inspection Project Directorate Office of Gratuity Fund Management Legal Division Tresury Division Central Training Institute (Director) PIO

Mr. Monohar Shrestha Mr. Seshraman Acharaya Mr. Kamalapati Paudel Mr.Ghuran Thakur Mr. Janaka Brd Thapa Mr.Poshan Raj Lamichhane Dr. Shivaram Koirala

4252358

4219241 4242145, 4258620, 4222297 4262708

4242144

4246175 4260453

Mr. Kirti Devkota

6635268

Mr. Ghuran Thakur

3.7

Branch Network of ADBL

Head Office

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Field Office

Regional Office

Main Branch

Branch

SubBranch

18 Regional Offices

Fig 3.1: Branch Network of ADBL

3.8
3.8.1

Products and Services Offered by ADBL

Deposits Of the many function of the commercial bank, acceptance of deposit is one of them. The bank allows for opening the three types of accounts to accept deposit for their customers. Through this account bank collects money from public and lend money to those who need them ADBL has following facilities regarding deposit:

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A. Current account ADBL's current account saves you the hassle of carrying cash. Mainly this account is intended for business/corporate houses, this account can be opened from our commercial banking branches throughout the country. This account is non-interest bearing and it comes with a check-book-you just need to write a check whenever and wherever it's convenient. i. Statement of Transactions The bank will provide you a statement of transaction upon your request. ii. Account and Cheque Book A current account can be opened with a minimum amount decided by the specific branch. Once your account is opened you will receive cheque-book containing 25 personalized cheques. To replace your cheque book once you run out of cheques just present the replacement form at the back of your current cheque book at your home branch and will arrange a new one for you. Our dedicated staff will be happy to help you so that you can start to maximize the benefits of ADBL's current account immediately. Account Opening You need to bring the following documents to open the current account. Personal Account a) Personal Identification (Citizenship Certificate and two copies of Photograph) b) Nominee Declaration Proprietorship Account a) Declaration of sole proprietorship b) Copy of renewed Registration Certificate c) Identification paper of account operator(s) d) Income tax registration/renewal certificate Partnership Account

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a) Letter of partnership duly signed by all partners b) Copy of the partnership Agreement c) Certified copy of partnership Registration and Renewal d) Identification paper of account operator(s) e) Income tax registration/renewal certificate Account of Corporate Bodies a) Memorandum and Article of Association of the Company b) Resolution of Board of Directors to open and operate an account c) List of Directors duly signed by respective directors with home address and phone numbers. d) Certificate of Company Register's Office e) Identification paper of account operator(s) f) Income tax registration/ renewal certificate

Accounts of Clubs, Societies and Associates (all documents to be duly certified by the charity) a) List of Office bearers and Address b) Copy of by-laws/ Constitutions c) Copy of Resolution to open and operate the Account d) Certification of registration and renewal certificate f) Identification paper of account operator(s) B. Saving Account Saving deposit account can be opened in any of our commercial branches. Your interest is calculated and credited to your saving account on minimum daily balance. Initial deposit ranges are depending upon the branch and it's level. Any balance below minimum amount will be liable to incidental charges as fixed by the bank from time to time. Customer opening this account gets a free cheque book. The bank offers Any Branch Banking facilities (ABBS) to its customer.

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Transaction Records When you open your account you will get a account number to keep track of your saving and transactions. You have to update your passbook by our bank staff at our branch. Account Opening You need to bring the following documents to open the saving account. Personal Account a) Personal Identification (Citizenship Certificate and two copies of Photograph) b) Nominee Declaration Proprietorship Account a) Declaration of sole proprietorship b) Copy of renewed Registration Certificate c) Identification paper of account operator(s) d) Income tax registration/renewal certificate Partnership Account a) Letter of partnership duly signed by all partners b) Copy of the partnership Agreement c) Certified copy of partnership Registration and Renewal d) Identification paper of account operator(s) e) Income tax registration/renewal certificate Accounts of Clubs, Societies and Associates (all documents to be duly certified by the charity) a) List of Office bearers and Address b) Copy of by-laws/ Constitutions c) Copy of Resolution to open and operate the Account d) Certification of registration and renewal certificate

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f) Identification paper of account operator(s) C. Fixed Account Features a) Fixed Deposit can be opened with a minimum balance of NRs. 10,000 b) Payable on maturity c) Penal interest is levied on withdrawal of fixed deposit prior to maturity d) Interest is payable monthly e) Tax is deducted at source from the interest on saving deposit as per the income Tax Act, 2058 (2001) f) Nomination facility is available g) Strict confidentiality is assured Tenure of Fixed Deposit Eligibility Documents Individual Minors Trust Association Clubs Societies Corporate Offices Six Months One Year Two Years Above Two Years up to Five Years

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The copy of the following certified documents has to be submitted while requesting for opening of Account. Personal Account Minors Guardianship to verified with related documents Nominees form Photograph of the nominee Signature of the nominee Identification Car in the form of Citizenship Certificate/ Passport/Other ID/PAN Card

Clubs/Societies and Association Copy of Registration Certificate Copy of Bye-Laws Copy of resolution to open and Operate the Account List of Members

Corporate Body Certificate of Incorporation Memorandum and Article of Association of the Company Resolution of Board of Directors to open and operate the Account Sample of Company Seal Name of Directors of the Board

Partnership Account Certificate of Partnership Registration

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Copy of Partnership deed, if any

Proprietorship Account Registration Certificate Identification of Proprietors Remittance

3.8.2

The function of remittance department is to remit and receive funds through SWIFT, Telex, Draft and Fax to or for the customers from any part of the world within few minutes. This department also sells and buys foreign currency to and from the customers but this function of buy and sell of foreign currency is done through the head office only. ADBL is an authorized agent/sub-agent of following national and international remittance companies which enables the customers to receive money from different countries. The main objectives are to provide safe and secure transfer of money to the right person after identifying the receiver and sender.

2. ADBL Remittance Products A) Inward Remittance (receiving of money in Nepal) Remitters who are abroad can transfer money payable from ADBL through:

Western Union Money Transfer Services One can remit money within Nepal through ADBL REMIT, starting from August

B) Outward Remittance

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ADBL has been transferring money (Indian Currency) to major cities of India by issuing draft which is payable either by Standard Chartered Bank or ICICI bank on the request of the customer. 3.8.3 Loans and Advances 3.8.4 Auto Loan Education Loan Foreign Employment Loan Home Loan Residential Loan Agricultural Production Loan Livestock Loan Small and Cottage Industry Loan Products and Inputs Marketing Loan

Others Services ADBL has extended its branches all over the 75 districts throughout the country Nepal. This service is free of charge to valuable customer. In this banking service, customer having account with ADBL can access their account from any branch having T24 software.

A. ABBS (any branch banking service)

B. Safe deposit vaults It is one of the best protections for the most important valuables of customers. ADBL offers safe deposit vault to store items. Customers can safeguard their important papers like insurance policies, family records such as birth certificates, deeds, titles, mortgages, leases, contracts, bonds, certificates of deposit. Other items include jewels, medals, rare stamps and negatives for important photos in case of fire or theft.

CHAPTER IV

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ANALYSIS OF ACTIVITIES DONE AND PROBLEMS SOLVED

4.1 Activities performed in Customer Service Department
During the two months of internship period, the internee was able to learn a lot about the operational procedure of Agricultural Development Bank Limited. Mostly the internee was placed at the front desk of the customer service department. The general activities for an internee at the customer service department was opening account of the customers, issuing cheque book, generating statements of account, handling customers queries and grievances, filing and indexing, and providing various information about the products to the customers. Customer Service Department is oriented towards handling customer queries and grievances. CSD is one of the busiest desks at a bank. The staffs at the desk need to respond to each and every customers call courteously and pass the important one to the managers or supervisors. The important task the intern learnt at this department can be described as below: Account Opening process and requirements Agricultural Development Bank provides three types of account services to its valued customers: saving account, current account and fixed account. Basic requirement for opening the personal account are: Customers name, gender, marital status, date of birth, permanent and temporary address (phone number), fathers name or husbands name, and all other relevant detail filled in the account opening form correctly by the accountholder. Agree with the terms and conditions of the bank. Sign the specimen cards. Certified true copy of identification document i.e. citizenship or Passport and Birth Certificate in case of minor account.

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Two photograph of account holder.

In case of Joint Account The account holder should present in the business desk during the time of account opening. Agree with the terms and conditions of the bank. Fill in the applications form correctly by the customer. The citizenship of the parties involved in the joint account must be presented. Two photographs of each party involve in joint account. The account holder should decide on the signature that is either one signature is acceptable or both signatures are compulsory. In case of Foreign National Certified true copy of Passport. Documents should be certified from concerned Embassy. Certified True copy or valid Visa. All documents of personal account for all the joint parties.

After ascertaining completion of basic requirement, the bank assigns an account holder, accepts deposit slip (voucher) and issues a cheque book. Process of opening new account After fulfilling the requirement of the issued account opening form and customer information form by the customers, it is received by the CSD. Then, thorough checking and verification are done to see any discrepancies. Once the verification is done with the original documents, a stamp is affixed on the photocopy of all the supporting documents. The signature for the account operation and image of the accountholder is scanned and kept along with the customers detail in the T24 software. Finally all these details are taken to the operating head for verification and approval.

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Account closing process and requirements It is another important task done under account operation. It is very rare that you encounter an account closing request at the customer desk at ADBL. People close their accounts because of many reasons. Procedures to close an account are given below: Step1. The customer is asked the reasons for closing the account and tries to convince not to close the account by explaining the benefit of the account and the charges taken for closing the account. Step2. If the customers are willing to close the account, he/she must fill up the form specifying the reason. Step3. After submission of the firm to CSD, it is confirmed from the various department that the customer is not enjoying and sort of facility from the bank at present. Step4. The client is then asked to return all his account related belongings like a check book. It is received by the employee at the front desk and is cancelled or destroyed. Step5. Then finally the account of the applicant is closed with certain charge. Preparing and distributing functions Another activities performed in the customer service department is preparing and distribution of various requested document to the clients. Various documents that a client can get from this department on requested are: Balance Enquiries Cheque Books Account Statement Indexing and filing of data related to the opening and closing of the accounts is also performed by the customer service department.

Balance Enquiry

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Mainly the balance certificate is demanded by the individual or corporation to know the status of their account. Everyday around 20 to 40 customers come for the request of balance enquiry. The bank provides the balance information to only the account holder. The bank provides the certificate to the corporation if the letter about the request certificate presented in the letter head with the signatures of the members and the stamp of the corporation. The statement can be issued to an individual also by fulfilling the same process.

Indexing and Filing The internee performed the job of indexing and filing of the KYC forms of the customers, inward and outward letters of ADBL, details about accounts closed and statements disbursed to customers. Cheque Book Distribution Clients, especially the ones holding current account in the bank request for the cheques book quite often. Everyday about ten to fifteen customers request for the cheques book. The client has to fill up the cheque request slip available in the customer department. After the submission of the request slip, the cheque book is then provided to the requester. The account holder must present to collect the cheques book and sign in the register and requisition slip.

CHAPTER V

31

CONCLUSION AND LESSON LEARNT 5.1 Summary

The main objective this study was to conduct a detailed study on the functioning of Customer service department at Agricultural Development Bank Limited. The other purposes for carrying out this study were to develop customer relationship skills, to be acquainted with work ethics and organizational culture of the banking industry, and get a first hand field experience of working in the banking sector. During the period of internship the internee mostly worked under the customer service department and the remittance department. On course of the internship, the internee performed activities such as; opening account of the customers, issuing cheque book, generating statements of account, handling customers queries and grievances, filing and indexing, remitting and receiving of funds on behalf of the customers, cheque clearance and providing various information about the products to the customers.

5.2

Conclusion

Internship plays an important role in matching the knowledge gained from theoretical perspective of education with the practical exposure at workplace. It also provides an opportunity to learn about the activities of the bank and its corporate culture. Within a short span of time an internee like me learned so many things like dedication, commitment to meet targets, interpersonal and communication skills etc, which will certainly help in coming days. Agricultural Development Bank is focused on serving the agricultural needs of the rural as well as urban peoples by providing various financial products and services to uplift the agricultural sector. To meet this objective, ADBL has been aggressively expanding its

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branches throughout the nation. ADBL, Prithivi Chowk, aims at maintaining cordial and lifelong relationship with its customers through responsive Customer Service Department. The CSD is very much responsive to satisfy the financial needs of its valued customers. It provides three types of core account services videlicet: saving account, current account and fixed deposit account. The CSD of the ADBL offers other additional services like printing monthly account statements, printing check books, and handling customer queries. The customer service department of Agricultural Development Bank deals with the customers which are the most valuable assets to the bank. ADBL is constantly attempting to provide better or quality financial services to its valued customers by providing unique, customized and personalized products. The CSD of ADBL deals with the various behavioral issues of its customers that are critical to make their customer feel satisfied. The main aim of CSD is to provide comfortable and friendly environment to its customers that ultimately adds up to its goodwill in the long run.

5.3

Lesson Learned

During the eight weeks of internship period, the internee learned about the banking culture of Agricultural Development Bank Limited and the importance of work ethics to maintain in organizations working environment. Through internship, the internee developed selfconfidence, interpersonal skills, professional qualities, and time management skills. The valuable lessons that the internee learned apart from the basic activities of the CSD are as follows: Learned about the functioning of the Customer service department of ADBL and its general banking practices and corporate culture. Learned to communicate and deal with the customers belonging to different classes. Learned to handle the grievances of the customers. Learned to be calm under the adverse conditions and tactfully handle the complex situations.

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Learned about the importance of time and punctuality. Learned to socialize with the professionals. Learned the importance of displayed emotion on the work place. Learned to use office equipments like fax, photocopy, cheque writer, printer etc. Learned to use different banking software like T24, and MS office tools. Learned about the procedure in account opening and closing of the individuals or the corporate. Learned about the procedure of distribution of check books, balance enquiries and account statement. Learned about the procedure of cash deposit and withdraw. Learned about the procedures in filling the files and indexing.

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BIBLIOGRAPHY
Thapa, K. & Parajuli, B. (2010) Financial Institutions and Markets. Januka Publication Pvt. Ltd: Kathmandu. Bank. (2000). (Sixth Ed.), Oxford Advanced Learners Dictionary: Oxford Press Government of India. 1951. Indian Banking Company Act 1949 (5(i) (b), (c): New Delhi, The Stationery Office. Agricultural Development Bank Limited, Brochures. Websites visited:
http://en.wikipedia.org/wiki/Bank (August 19, 2012) https://en.wikipedia.org/wiki/Commercial_bank (August 19, 2012)

http://www.investopedia.com/articles/07/banking.asp (August 19, 2012) http://www.nrb.org.np (August 19, 2012)

http://adbl.gov.np (August 19, 2012)