Rastriya Banijya Bank was established in B.S. 2022 Magh 10 as a second commercial bank in Nepal. Rashtriya Bnijya Bank is one of the pioneer banks in the country with a history of more than a half-century.
Earlier constituted under RBB Act 2012 with the full ownership of the government of Nepal. the bank has been running under the Bank and Financial Institutions Act 2073 and Company Act 2063 at present. The bank is licensed by Nepal Rastra Bank as ‘A’ class commercial bank of the country. RBB has grown up as an indispensable component of the Nepalese economy.
Role of Rastriya Banijya Bank in the Banking Development of Nepal
The role of Rastriya Banijya Bank in banking development of Nepal can be explained in the following headings
1. Contribution to the Development of Banking Behavior
Before the establishment of the RBB, there was only one commercial bank in Nepal (Nepal Bank Limited). At the time of the establishment of RBBL, there were only 35 branches of NBL in the country. After the establishment of RBBL, it expanded its branches on 63 other districts.
Now the bank with the highest public confidence-reflected in the highest deposit base and growing demand of branch establishment in the various parts in the country. The bank with as many as 1.7 millions satisfied customers ranging from poor to elite ones and millions of indirect ones has drawn important imprint in the picture of country’s economy through its significant involvement in the best use of resources to enhance the production, income and employee opportunities.
2. Creating Capital for National Development
With the help of a nationwide network, RBBL has able to collect even small to small saving from the public of rural areas as well as urban areas. The effective mobilization of those deposit in the profitable sectors helped in the economic development of the country.
3. Banking Network Through the Country
RBBL has the largest branch network in Nepal covering 66 branches in the mountainous region, 69 in Terai region, and 23 in the Kathmandu valley. The wide range or its coverage helped to expand the banking access for the general public in the country.
4. Development of Banking Manpower
Being one of the oldest and pioneer commercial bank, it has produced many banking manpower. At present the RBBL human products are working on the different bank at the top level. Besides this, RBBL also provided different training to staff, which help to develop competent manpower in the banking sector.
5. Establishment of Financial Institution
RBBL has played a vital role in the establishment of some financial institution by capital investment, such as Indoseuz Bank, Gramin Bikash Bank, NIDC Capital Market, Nepal Housing and Financing Co, Alpic Everest Finance, Neco Insurance, etc.
6. Remittance Service
RBBL has played a vital role in the transfer of money within and outside the country with the help of its worldwide network.
7. Operation of Government Fund
Nepal Rastra Bank works as a government bank but since Nepal Rastra Bank does not have branch all over the country, it works through NBL and RBBL for the operation of the government fund.
8. Use/Practice Nepali Currency
At the time of the establishment of RBBL, Indian currency was prevalent in Nepal. But after the establishment of RBBL though the help of its network all over the country, RBBK as able to replace IC by Nepali currency.
9. Customer Oriented Modern Banking
RBBL provided different customer oriented modern banking services to its customer. ATM, BLB, Debit Card SMS Banking, E-Banking are some example of modern banking service provided by RBBL.
This is how Rastriya Banijya Bank has contributed to the banking development of the country.
Role of Rastriya Banijya Bank in the Economic Development of Nepal
- Financing in the agricultural sector
- Financing on the rural sector
- Financing in the industrial sector
- Financing in the business sector
- Employment generation
- Capital formation
- Encourage innovation
- Influence the economic activity
- Facilitate economic and fiscal policy
- Banking habit and literacy
- Making the payment
- Promote export
- Remittance of money
- Reducing the informal money market/replaces informal money market