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What are the Categorization of Banks & Financial Institution in Nepal? BAFIA Act (2073) Summary for bases of Categorization








Introduction - Categorization of Bank & Financial Institutions in Nepal
Commercial banks play out a wide range of the keeping money business. The essential capacity of business banks is accepting stores and loaning to others, the banks attempt a wide assortment of capacities to help their clients by performing organization administrations and general utility administrations. Store of the business banks for the most part are for brief time frame, consequently they include in the brief time of loaning exercises. Nonetheless, as of late the business banks have additionally stretched out their regions of task to medium term and long haul back. Elements of the business banks are; tolerating stores; propelling advance, letter of credit, ensure, settlement, e-managing an account, bills and so on. A cutting edge business bank is relied upon to go past the customary saving money works and to take up testing errand of accomplishing monetary development, joined with steadiness and social equity Nepal Bank Ltd. was set up on fifteenth November 1937 as the main business bank in Nepal. Rastriya Banijya bank is the second government possessed business bank which was set up on 23 January 1966. 

Banks are those sorted out organizations set up under the arrangement of current laws, guidelines and directions to perform business related to cash. It acknowledges stores and gives credit. The individual can pull back the stored cash whenever. The word 'Bank' is gotten from the Italian word 'Banco' implies trading cash sitting on a seat. Already Italian Goldsmith used to play out the money related undertaking sitting on the seat in the market. In this way, ' boycott co' was utilized to signify the financial exchanges. Later it was spelled as 'Bank'. It is extremely hard to give specific importance of bank in this advanced age. Diverse financial analysts have given distinctive definition like; 

Commercial Banks are those banks which are built up to acknowledge stores and give advance to the people, brokers and ventures with the reason for acquiring benefit. Business banks are so famous these days that we comprehend business banks just by calling banks. They are set up as the business entity. Foundation of business banks is to acknowledge as store to the unused measure of one sort of customer and elevates to another kind of customers to utilize such sum as advance. It likewise gives the long tern, mid term and here and now advances.

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