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CUSTOMER SERVICE DEPARTMENT

OF
GLOBAL IME BANK LTD.

AN INTERNSHIP REPORT

Submitted To:
Office of Dean
Faculty of Business and Accountancy
Lincoln University College, Malaysia

Submitted By:
Deepina Rijal
LUC Registration No.: LC0003000098
Phoenix College of Management (PCM)

in the partial fulfillment of the requirement for the degree of


Bachelor (Hons) in Business Administration (BBA)

Kathmandu, Nepal
December, 2017

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APPROVAL LETTER

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CERTIFICATE FROM INDUSTRY

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DECLARATION
I declare that the internship report is submitted to Phoenix College of Management
affiliated to Lincoln University College which is my original work and done based on
learning during internship program for the partial fulfillment of the requirement of
Bachelor (Hons) in Business Administration (BBA). It is carried out under the guidance
of Mr. Sanjeev Pradhan and has not been submitted anywhere for the award of any other
degree or commercial purpose. In keeping with the ethical practice in reporting scientific
information, due acknowledgements have been made wherever the finding of others have
been cited.

Deepina Rijal
LUC Reg. No.:- LC0003000098

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ACKNOWLEDGEMENT
This internship report is submitted in partial fulfillment of the requirement of the degree
of Bachelor (Hons) in Business Administration (BBA) under the Faculty of Management,
Lincoln University College. The completion of this report was possible only because of
the co-operation and support of my colleagues, related faculty members, college
management and especially Global IME Bank’s staffs for being so kind and cooperative.

I am grateful to all the staffs of Global IME Bank, Sinamangal who gave their valuable
time in guiding me throughout the training period and helped me in preparing the final
report. . I express sincere gratitude to the internship supervisor Ms. Jyoti Bhandari
(Customer Service Department) for her cooperation and support, Ms. Kabita Phuyal
(Branch Manager) for providing me an opportunity, Ms. Richa Neupane (Operation In-
charge) who simply furnished supportive environment which truly motivated to learn
banking concepts My heartfelt thanks also go Mr. Sanjeev Pradhan, my advisor for
providing me with continuous support during the internship program and report writing.

I want to express great debt to all subject facilitator of BBA (Phoenix College of
Management) and also would like to appreciate and acknowledge my other faculty for
providing me an opportunity and also helping me in conducting a research and a field
work at ‘Global IME Bank’ as partial fulfillment of my BBA program. It was a great
educational as well as practical learning experience to conduct such research work.
Lastly, I would like to express my gratitude to all my friends for the direct indirect help,
cooperation, encouragement and contribution during the time of preparing this internship
report.

Sincerely

…………….

Deepina Rijal

LUC Reg. No.:- LC0003000098

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EXECUTIVE SUMMARY
The Bachelor (Hons) in Business Administration (BBA) program of Phoenix College of
Management affiliated to Lincoln University College; require students to undertake an
internship at the 8th semester. The internship report requires students to undergo the
internship program in an organization for a period of two months, which should provide
an opportunity to integrate and apply theory with management practice.
The internship program has the following objectives:
▪ To actively participate in real organization to gain an understanding of overall
mission, objectives and functioning of the organization.
▪ To integrate and apply theory with management practice and understand the
assignment given by the organization.
▪ To complete particular assignments provided by the organization and prepare a
detailed report on it, which is expected to be useful both for the organization and
for the college.
The internship was done in Customer Service Department at the branch office of Global
IME Bank Limited, Sinamangal. The involvement was for the period of two months.
Intern was supervised by Ms. Richa Neupane – Bank In-charge and Ms. Kabita Phuyal-
Branch Manager of GIBL.
This report on Global IME Bank Limited is the outcome of the completion of internship
at Sinamangal Branch. The main objective of the internship is to get the practical
exposures of the theories that we studied in the college. The study is based on the
knowledge gained in different department about their operating activities and procedures
during internship over there.

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TABLE OF CONTENTS

Title Page No.

Cover Page i

Approval Letter ii

Certificate from Industry iii

Declaration iv

Acknowledgements v

Executive Summary vi

Table of Contents vii

List of Tables x

List of Figures xi

Abbreviations xii

CHAPTER ONE
INTRODUCTION………………………………………………………….1
1.1 Background……………………………………………………………………………2
1.2 Objective………………………………………………………………………………2
1.3 Methodology…………………………………………………………………………..3
1.3.1 Organization Selection………………………………………………………...…..3
1.3.2 Placement………………………………………………………………………….3
1.3.3 Duration………………………………………………………………………..….4
1.3.4 Activities……………………………………………………………………..……4
1.4 Limitation of the Study……………………………………………...............…….......5
CHAPTER TWO
INTRODUCTION OF BANKING INDUSTRY………………….……...6
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2.1 Introduction of Bank………………………………………………………………..…7
2.2 Evolution of Banking Industry.......................................................................................7
2.3 Development of Banking Industry in Nepal……………………………………..........8
2.3.1 Commercial Banks in Nepal……………………………………………………10
2.4 Present Scenerio………………………………………………………………..,,,,….13
2.5 Challenges and Opportunities of Banking Industry………………………………….15
2.5.1 Challenges………………………………………………………………..............15
2.5.2 Opportunities……………………………………………………………..............16
CHAPTER THREE
INTRODUCTION OF GLOBAL ime bank LIMITED………………...17
3.1 Profile of GIBL………………………………………………………………………18
3.2 Organization Mission and Objectives………………………………………………..19
3.2.1 Objectives ……………………………………………………………………….19
3.2.2 Mission………………………………………………………….………………..19
3.2.3 Vision………………………………………………………………………….....20
3.3 Products and Services ……………………………………………………..................20
3.4 Organization Design and Structure…………………………………..........................24
3.5 Present Scenerio…………………………………………………………..…….........25
3.6 Challenges and Opportunities of GIBL…………………………….………………...26
3.6.1 Challenges…………………………………………………………..……………26
3.6.2 Opportunities……………………………………………………………………..27
CHAPTER FOUR
ANALYSIS OF ACTIVITIES DONE AND PROBLEM SLOVED…...29
4.1 Background…………………………………………………………………………..30
4.2 Introduction of the activities/ Department/ Section………………………………….30
4.3 Role of intern and fitting in the organization………………………………………...30
4.3.1 Opening of an account…………………………………………………………...31
4.3.2 Form filling………………………………………………………………………36
4.3.3 Document verification…………………………………………………………...36
4.3.4 Closing account…………………………………………………………..............37

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4.3.5 Preparation and distribution of cheque book……………………….....................38
4.3.6 Providing bank statement………………………………………………………..39
4.3.7 ATM card distribution…………………………………………………………….40
4.3.8 ATM card activation………………………………………………………………40
4.3.9 Documents uploading on bank server…………………………………………...40
4.3.10 Handling telephone calls……………………………………………………….40
4.3.11 Recording cheque book, debit card issue……………………………………....41
4.3.12 Calling existing customer to update kyc……………………………………….41
4.3.13 Customer counseling…………………………………………………………...41
4.3.14 Service counseling……………………………………………………………...41
4.3.15 Account reactivation…………………………………………………………....42
4.3.16 Provide balance certificate……………………………………………………..42
4.3.17 Balance check………………………………………………………………….42
4.4 Understanding of System, Processes and Rationale ………………………………...43
4.5 Problems, Challenges and How these Problems were Solved……………………….43
4.5.1 Problems Identification and Solved……………………………………………..44
4.6 Observation Gap……………………………………………………………………..46

CHAPTER FIVE
CONCLUSION /LESSON LEARNT……………………………………………….48
5.1Conclusion………………………………………………………………………...….49
5.2 Inference drawn/imtern’s key observation…………………………………………...49
5.3 Overall experience,learning,knowledge gained……………………………………...51
5.4Recommendations…………………………………………………………………….53
REFERENCES/BIBLOGRAPHY……………………………………….54

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LIST OF TABLES

Title Page No.


Table No. 2.3 Category of financial institution 9
Table No. 2.3.1(a) List of commercial bank of Nepal 11
Table No. 2.3.1(b) Showing Growth of banks in Nepal 12
Table No. 3.3(a) The interest rate on deposit 20
Table No. 3.3(b) Interest rate of FD on GIBL 21

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LIST OF FIGURES

Title Page No.


Figure No. 2.3.1 Growth of commercial bank in Nepal 13
Figure No. 3.4 Structure of GIBL 25
Figure No. 4.3.1 Account opening Procedure 32
Figure No. 4.3.4 Account closing procedure 37

xi
ABBREVIATIONS

A/C Account
ABBS Any Branch Banking Services
ATM Automated Teller Machine
BBA Bachelor of Business Administration
CDMA Code Division Multiple Access
CSD Credit Service Department
E-banking Electronic banking
EBEP Easy Buy Easy Pay
FD Fixed Deposit
GIBL Global IME Bank Ltd
GSM Global System for Mobile Communications
IME International Money Express
KYC Know Your Customer
Ltd Limited
LU Lincoln University
NRB Nepal Rastra Bank
PCM Phoenix College of management
Reg No Registration Number

xii
CHAPTER ONE
INTRODUCTION

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1.1 Background
An internship is a form of experiential learning that integrates knowledge and theory
learned in the class room with practical application. It is an opportunity to combine and
integrate theoretical knowledge into career related experience. Internship has crucial
importance for students as it provides exposure in the organizational environment and
also develops individual skill to understand how to handle work related problem. It also
helps to develop interpersonal skills and enable to work under immense pressure.
Phoenix College of management affiliated to Lincoln University College has set the
internship program as the partial fulfillment of Bachelor (Hons) in Business
Administration (BBA) in last semester where students involved as an intern in any
organization for 8 weeks and prepare a report based on their experience and involvement
in the real corporate business environment.

To fulfill the part of BBA program, the internship was carried out of CSD of GLOBAL
IME BANK. Customer service department is the department which deals with the
customer of the bank for the purpose of serving customer as a part of their service and it
involves various activities like opening an account to its closing, providing account
statements as per customer’s demand, issuing and distributing ATM cards etc. The basic
activities carried out at CSD are customer counseling, account operations and distribution
activities, making and issuing cheque books etc.

1.2 Objectives
The General objectives of this study are:
• To the partial fulfillment of the requirement for the award of degree of Bachelor
(Hons) in Business Administration (BBA)

The Specific objectives of this study are:

• To develop communication skills by dealing with customers.

• To understand various issues and challenges in CSD.

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• To learn how to handle customer and tackle with their grievances in Customer
Service Department.

1.3 Methodology
For Eight weeks internship program, various process need to be followed in selecting
organization, providing them letter and receiving confirmation and getting out internship
work.

1.3.1 Organization Selection


Being a BBA student doing an internship in reputed financial institution is always in a
top priority of an internee. Nevertheless, selecting an organization has been a tough job
much of the time was spend on searching the right institution. Internship from a reputed
financial institution helps to build career by creating linkage between classroom
knowledge and practical business world experience. Fortunately, the internee got an
opportunity to work in Global IME Bank Ltd.in order to be appointed it is necessary to
drop college recommendation letter and personal application with curriculum vitae (CV);
further, regular follow-up with the human resource manager is also necessary to get
opportunity to work in Global IME Bank Ltd. After receiving letter from the corporate
Branch situated at Panipokhari, the internee was sent to Sinamangal Branch as internship
location. The internee was assigned to customer service Department for 2 months period
by operation in-charge.

1.3.2 Placement
During the internship period the intern was placed under the Customer Service
Department at the Sinamangal Branch. Internee was required to handle all the activities
of the department under the guidance and supervision of the CSD staff and operation in
charge. The two months internship really helped intern to develop interpersonal skills.
The intern was able to learn the bank culture, work environment and working procedure
of Global IME Bank Ltd. Two months of time is not sufficient to gather overall

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knowledge of banking, but however these two months of internship had really been
knowledgeable and fruitful for the intern to gain at least brief understanding of it.
In GIBL, throughout internee internship period, the internee was placed in Sinamangal
Branch, Customer service department (CSD). It was under the supervision of Ms. Richa
Neupane (Operation in Charge).

Address Sinamangal

Working hours 10:00 Am to 5:00 Pm

Starting week June 14, 2017

Ending week August 16, 2017

Working Duration 2 months

Working Department Customer Service Department

Internship Supervisor Ms. Richa Neupane

1.3.3 Duration
According to the university (LUC), students are required to do the internship for a
standard of duration of eight weeks. So internee worked at Global IME Bank Ltd for 8
weeks. Internee worked the entire period in a single department i.e. customer service
department. The duration of internship has been defined for minimum of eight weeks.
The internship was completed from 14th June 2017 to 16th August 2017 under the
supervision of Mrs. Richa Neupane operation in charge.

1.3.4 Activities
Internship program provides opportunity to learn and perform day to day business
activities done in bank. The activities performed are:
• Providing general information
• Opening account
• Closing account
• Reactivating accounts

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• Receiving request and dispatch of Cheque book
• Receiving request and dispatch of ATM cards
• Distribution of different forms
• Distribution of ATM cards and cheques.
• Filing Account opening, Account closing, and various applications forms in its
respective file.
• Keeping records of Cheque Clearing and Return on Cheque Clearing on its
respective Register
• Handling phone calls

1.4 Limitation of the study


It is obvious that there arise some kind of limitation in everything. The internee has found
certain limitations; here are some limitations of the study
• Lack of adequate time to learn all the activities in just eight weeks.
• Analysis is mainly based on primary as well as secondary data such as the
published documents of Nepal Rastra Bank and other commercial banks. The
published documents and the personal information have their own limitations.
• Due to the confidentiality maintain by the bank, information regarding customers
and clients was not available in detail.
• It does not give detail view of the overall functioning of the bank since most of
the information is collected through personal experience and observation.

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CHAPTER TWO
INTRODUCTION OF BANKING INDUSTRY

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2.1 Introduction of Bank
A bank is a financial institution that accepts deposits from the public and creates credit.
Lending activities can be performed either directly or indirectly through capital markets.
It provides a great variety of financial service. The bank hold money on behalf of
customers, which is payable on demand, by withdrawal. Banks use the money they hold
to finance loans, which they make to businesses and individuals to pay for operations,
mortgages, education expenses, and any number of other things. Due to their importance
in the financial stability of a country, banks are highly regulated in most countries. Most
nations have institutionalized a system known as fractional reserve banking under which
banks hold liquid assets equal to only a portion of their current liabilities. In addition to
other regulations intended to ensure liquidity, banks are generally subject to minimum
capital requirements based on an international set of capital standards, known as the
Basel Accords.

According to shorter oxford English dictionary," A bank is an establishment for the


custody of money; receive from or on behalf of each customer. Essential duty is to pay
their draft on each profit area from its use of the money left unemployed by them."

As per NRB Act 2002- “Bank is a financial institution, which provides financial services
that may be in the form of accepting deposits, advancing loan, providing necessary
technical advices, dealing over foreign currencies, remitting funds, etc.

Banking sector plays an important role in the economy development of the country.
Commercials banks are one of the vital aspects of this sector, which deals in the process
of channelizing the available resources in the needed sectors. It is the intermediary
between the deficit and surplus sector of financial resources.

2.2 Evolution of Banking Industry


The evolution of banking industry had started a long time ago, during ancient times. The
history of banking is closely related to the activities of money changers in the temple ot
Jerusalem in the New Testament. In ancient Greece the famous temple of Delphi and
Olympia served as the great depositors for people's surplus funds and these were the

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centers of money lending transaction. Indeed the traces of “rudimentary banking” were
founded in the Chaldean, Egyptian and Phoenician history. The development of banking
in ancient Rome roughly followed the Greek pattern. Bank suffered oblivion after the fall
of the Roman Empire after the death of Emperor Justinian in 565 A.D. and it was not
until the revival of trade and commerce in the middle Ages that the lessons of finance
were learnt a different from the beginning. Money lending in the middle ages was,
however, largely confined to the Jews since the Christians were forbidden by the Canon
law to indulge the sinful act of lending money to others on interest. However, as the hold
of the Church loosened with the development of trade and commerce about the thirteen
century Christians also took to the lucrative business of money lending, thereby entering
keen competition with the Jews who had previously monopolized the business. As a
public enterprise, banking made its first beginning around the middle of the twelfth
century in Italy and the bank of Venice, founded in 1157 was the first the public banking
institution. Following it were established the bank of Barcelona and the bank of Genoa in
1401 and 1407 respectively. The bank of Venice and the Bank of Genoa continued to
operate until the end of eighteen century. With the expansion of commercial activities in
Northern Europe there sprang up a number of private banking houses in Europe and
slowly it spread throughout the world. In Nepal, modern banking starts with the
establishment of Nepal Bank Limited

2.3 Development of Banking Industry in Nepal


The history of banking in Nepal can be traced back to 1877 A.D. when Tejarath Adda
was established by the government to provide credit facilities to general public. Although
the Tejarath Adda was established, it was not able to facilitate the growing trades with
Tibet and India. Thus a need for the establishment of a modern bank had become
essential to promote the trade of the nation. In the year 1923 "Treaty of Peace and
Friendship” were concluded between the Government of Britain and Government of
Nepal. As per the treaty, Nepal could carry on import trade free of duty via India. In other
words, it meant that Nepal was going to diversity its foreign trade and for that the country
needed a modern bank. But it wasn't till 1936 A.D. that the Udyog Parishad (Industrial
Development Board) was set up.

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A year after its formation, the Udyog Parisad formulated the company act and the "Nepal
Bank Act” in 1937 A.D. which established the Nepal Bank Ltd. with the technical
cooperation of the Imperial Bank of India, as the first commercial bank of Nepal. In
1956, the Nepal Rastriya Bank act was formulated and Nepal Rastra Bank was
established as a central bank on April 26, 1956. The NRB focused mainly on eliminating
dual currency system prevalent in Nepalese market. NRB tried to decrease circulation of
the Indian currency, replacing it with the Nepalese currency in various transactions of
trade and commerce. There were other government banking institutions. Rastriya
Banijaya Bank (National Commercial Bank) a state-owned commercial bank was
established in 1966.

In the mid-1980s, three foreign commercial banks opened branches in Nepal. The Nepal
Arab Bank (now Nepal Bank) was co-owned by the Emirates Bank International Limited
(Dubai), the Nepalese government, and the Nepalese public. The Nepal Indosuez Bank
(now Nepal Investment Bank) Nepal Grindlays Bank (now Standard Chartered Bank
Nepal) was co-owned by a British firm called Grindlays Bank. Now there are many
banks and financial companies in the country. There are

28-Commercial banks, 39-Development banks, 28-Finance companies, 53-Micro


Finance.

Table No. 2.3 Categories of Financial Institution

Types of Financial Institutions Class Number


S. No.
1 Commercial Banks A 28
2 Development Banks B 39
3 Finance Companies C 28
4 Micro Finance D 53
Total 148

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2.3.1 Commercial Banks in Nepal
The Commercial bank is the oldest form of bank. In general, bank that performs all kinds
of banking business and generally finances and commerce is called commercial bank. It
occupies quite an important place in the framework of every economy. Commercial
banks deal with activities of trade, commerce, industry and agriculture that seek regular
financial and other help from banks for growing. The main objective of commercial bank
is to mobilize idle resources in productive use after collecting them from scattered
sources. They accept deposits from the public and use the money to help the community
by making loans to individuals, Organizations, governments and business. Commercial
banks, acquire funds from one group of surplus spending units and making these funds
available to other deficit units facilitating the effective mobilization of resources, which
in turn leads to sound economic growth of the country.
The main aim of a commercial bank is to earn profit like any other business entity. It
lends a certain percentage of the cash lying in deposits on higher interest rate than it pays
on such deposits. The difference of interest on deposits received and loans advanced are
the main source of its income. Commercial banks represent the most important financial
intermediary when measured by the total assets. In modern times, commercial banks are
concentrated in their activities of fulfilling the financial need of their customer. Thus
commercial banks are simply a business firm engaged in financial intermediation as well
as perform additional functions under strict supervision and control of the central bank.
In the context of Nepal the first Commercial bank, “Nepal Bank Limited” was established
in 1937 A.D. and the second “Rastriya Banijya Bank” was established in 1966 A.D.
Nepal has opened its door to foreign commercial banks in the kingdom almost a decade
back. As the country followed economic liberalization, there was massive entrance of
foreign banks in Nepal. Consequently, Nepal Arab Bank was established in1985 A.D.
similarly the Nepal Indosuez Bank was established as a joint venture between Nepal and
France in1986 A.D. the legitimate entry of foreign commercial banks with full-fledged
banking functions led to rapid growth of banking system. After 1990 economic
liberalization policy obtained by the government. In Nepal there are operating 28-
commercial banks, which in shown table below:

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Table No. 2.3.1(a) List of Commercial Banks of Nepal
S.N. Name of the bank Year of
Establishment
(A.D.)

1 Nepal Bank Limited 1937

2 RastryaBanijya Bank Limited 1966

3 Agricultural Development Bank Limited 1968

4 Nabil Bank Limited 1984

5 Nepal Investment Bank Limited 1986

6 Standard Chartered Bank Limited 1987

7 Himalayan Bank Limited 1993

8 Nepal SBI Bank Limited 1993

9 Nepal Bangladesh Bank Limited 1994

10 Everest Bank Limited 1994

11 Bank of Katmandu Lumbini Limited 1995

12 Nepal Credit and Commerce Bank Limited 1996

13 Machhapuchhre Bank Limited 2000

14 Kumari Bank Limited 2001

15 Laxmi Bank Limited 2002

16 Siddhartha Bank Limited 2002

17 Global Bank Limited 2007

18 Citizens Bank International Limited 2007

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19 Prime Bank Limited 2007

20 Sunrise Bank Limited 2007

21 NIC Asia Bank Nepal Limited 2007

22 NMB Bank Limited 2008

23 Prabhu Bank Limited 2009

24 Janata Bank Nepal 2010

25 Mega Bank Nepal 2010

26 Civil Bank Limited 2010

27 Century Commercial Bank Limited 2011

28 Sanima Bank Limited 2011

Source NRB, Banking and Financial Statistics

Table No. 2.3.1(b) Showing Growth of banks in Nepal

B&FI’s 1980 1985 1990 1995 2000 2005 2006 2010 2012 August

2016

Commercial 2 3 5 10 13 17 18 30 32 28
Banks

*Source NRB, Banking and Financial Statistics

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Growing trend of commercial banks
35
32
30
30 28

25
18
No. of Bank

20
17
15 13
10
10
5
5 3
2
0
1980 1985 1990 1995 2000 2005 2006 2010 2012 2016 Year

Figure No. 2.3.1 Growth of Commercial Banks (Class A) in Nepal

The table and figure below shows the trend in which the commercial banks of Nepal have
been grown since last two decades. As per the Figure 2.3.1 and Table 2.3.1(b) above the
number of commercial banks shown in 2012 was at the peak point. Later on NRB pass
the policy to maintain 8 Arab Authorized capitals because of which the commercials
banks have to merge with one another to build the required capital. So, from 2013 Bank
and Financial Institutions go on merger and acquisition process to meet the standard
criteria of authorized capital regulated by NRB which slightly decrease the number of
commercials banks in Nepal that tend to bend the curve below.

2.4 Present Scenario of Banking Industry in Nepal


There are 28 commercial banks in Nepal along with 39 development banks and 28
finance companies having paid up capital of not less than Rs. 8 billion, Rs. 2.5 billion and
Rs. 800 million, respectively. The total core capital of commercial banks is 288 billion

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rupees. Total deposits and loans of all commercial banks of Nepal is 2,093 billion rupees
and 1,736 billion rupees, respectively (as of mid-July 2017). Out of the total loan of
1,736 billion rupees, local currency loan is 1,710 billion rupees.

The Central Bank of Nepal is shrinking the number of banks and financial institutions
(BFIs) and insisting on the BFIs to merge and for acquisition. Small development banks
and financial institutions either go for mergers or are being taken over by commercial
banks. No new license is being issued to banks and financial institutions by the central
bank.

Mega investments, no doubt, call for huge amount of funds. Funds can be arranged either
from local banks and financial institutions or through international markets. The appetite
of existing commercials banks and other financial institutions is limited to medium and
small projects, except for some consortium financing. Borrowing from international
market is subject to many factors like interest rates risk, credit risk, market rate risk,
foreign exchange risk, country risk etc. But it does not mean that local borrowing is not
subject to these factors.

The Banks and Financial Institution Act (BAFIA), 2074 (2017) opens establishment of
Infrastructure Development Banks (IDB) though it is reluctant to issue new licenses to
commercial banks and other financial institutions. Section 107 of the same Act provides
that the central bank can formulate the policy with respect to Infrastructure Development
Banks.

As per the Licensing Policy, a minimum paid up capital of IDB has to be 20 billion
rupees. If IDB is established from local investment only, and promoters group shall hold
a minimum 51% of the shares and 30% shares would be allocated to the public. If IDB is
established with foreign investment, foreign investors can own 20% to 85% of the shares
but it has to allocate at least 15% shares to the public. If foreign shareholding is 20% or
more but less than 50%, the public shall be allocated, at least, 30% of shares. Local
promoters group cannot invest in shares using capital borrowed from any bank or
financial institution. Due to NRB rules and regulation regarding paid up capital and other
requirements many banks are merging with another bank who are competitive in market.

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2.5 Challenges and Opportunities of Banking Industry
2.5.1 Challenges

• Intense Competition
With the representation of 28 commercial banks with their several branches spread all
around the country, the banking sector today is under the pressure of intense competition.
Customer’s change in taste, preferences and want for innovative products and services
has further acted as a catalyst.

• Requires Huge Cost


Every bank uses its own software to operate banking activities. It requires large network
connections as to connect all the branches along the same network. Today, Banks are
adopting new and sophisticated technologies in order to provide better quality services to
their customer which involves huge cost.

• Liquidity Crisis
Improving the worsening liquidity crisis that is directly affecting the operation of banks is
a major challenge for the banking sector in the current scenario. Higher loan investment
compared to the deposit and the policy that requires declaration of the source of fund
exceeding Rs one million contributed to liquidity crisis.

• Political Instability
As the country’s political situation is unstable, the investors are reluctant to invest in new
projects. Due to political instability economic development is not able to foster, as a
result, investor back off for making huge investment as they assume the loss will
overshadow their amount of profit.

• Complex government policies


All the commercial banks of Nepal have to perform its functions under the act of Nepal
Rastra Bank. In this regard, Nepal Rastra bank has been formulating its policies. Recent

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policy states, 10 billion is to be raised as capital by all commercial banks very risky for a
new entrants to carry out their transactions.

2.5.2 Opportunities

• Emerging Nation
Nepal is one of the developing countries among all other countries. There are various
projects that have been undertaken to develop the economy of the country. Among the
various other sources, bank loans are the major source of investment.

• Merger
A tough competition has been going on in banking industry. Hence, banks need to
strengthen and increase capital to compete in the market. Mergers strengthen the bank
and bring economies of scales. Mergers lead to synergy effect and helps in cost saving of
banks.

• Technology
Almost all banks have e-banking and mobile banking facilities. The customers of bank
have an easy access to their bank account and its services sitting anywhere they want.
Most banks have their own mobile apps for security concerns. Customers are notified
regarding changes to their account.

• Remittance
The number of migrant population for employment is rapidly increasing. Among those
migrants most of them are unskilled. Appropriate products should be designed to target
this growing migrant population.

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CHAPTER THREE
INTRODUCTION OF GLOBAL IME BANK LTD

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3.1 Profile of GIBL
Global IME Bank Ltd. (GIBL) emerged after successful merger of Global Bank Ltd (an
“A” class commercial bank), IME Financial Institution (a “C” class finance company)
and Lord Buddha Finance Ltd. (a “C” class finance company) in year 2012. Two more
development banks (Social Development Bank and Gulmi Bikas Bank) merged with
Global IME Bank Ltd in year 2013. Later, in the year 2014, Global IME Bank made
another merger with Commerz and Trust Bank Nepal Ltd. (an “A” class commercial
bank).
For the day to day operations, the bank has been using the world renowned FINACLE
software that provides real time access to customer database across all branches and
corporate locations of the bank. This state of the art customer database has also been
linked to a Management Information System that provides easy reach to all possible
database information for balanced and informed decision making.

The bank has been able to achieve excellent diversification of its assets. The bank has
diversified interests in hydro power, manufacturing, textiles, services industry, aviation,
exports, trading and microfinance projects, just to mention a few. The flawless
performance of the bank in these last years has elevated it to a premier status in the
industry. The bank has been handling government transactions and is officially among
one of the few commercial banks trusted by the Government in handing Government
revenue transactions of various offices. The bank has been able to earn the trust and
confidence of the public, which is reflected in the large and ever expanding customer
base with more than 550,000 numbers of accounts in deposit base and above 16,000 in
credit. Through all this the bank has been able to truly achieve its vision of being “The
Bank for all.” Even with all this success, the bank remains internally focused towards
manpower development, product innovation and process innovation etc., to have a strong
and solid foundation, which are ongoing and continuous improvement initiatives
undertaken by the management and staff alike.

GIBL has been conferred with “The Bank of the Year Award 2014” for Nepal by the
Bankers Magazine (Publication of the Financial Times, UK) and “Best Internet Bank
2016- Nepal” by International Finance Magazine, London. It has been appointed as

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handling bank unit of CREF (Central Renewable Energy Fund) under AEPC (Alternative
Energy Promotion Center). GIBL has been the first ever bank selected for such purpose
by AEPC.

3.2 Organization mission and objectives


In the modern banking industry, commercial banks perform different functions and offer
varieties of services to fulfill the requirements of customers and retaining them.

3.2.1 Objectives of the Global IME Bank


The main objectives of this bank is to serve the people and the nation providing world
class banking products and services through professional and quality management. The
main objectives of this bank are as follows:
• To provide standard and reliable financial services to the general public by
protecting and promoting the rights and interest of the depositors, and
shareholders of the bank.
• To provide financial intermediary service through institutional investment by
integrating the capital scattered in the country and fair competition.
• To provide mid-term and long-term financial means and resources as may be
required for investment to be made in the development of infrastructures of the
country in a businesslike manner, while remaining vigilant towards the protection
of environment.
• To mobilize and provide such mid-term and long-term capital as may be required
for the establishment, operation protection and promotion renewable energy and
other infrastructure and business related therewith by the private sector.

3.2.2 Mission
To win respectable market share through customer focused quality products and services,
innovative business solutions and technology driven banking thereby enhancing the
growth and profitability of the bank so as to ensure the optimum benefit to all stake
holders at all times.

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3.2.3 Vision
The bank shares a common vision of “The Bank for All” amongst its Promoters,
Directors, Management Team and Staff in commitment to providing the highest standard
of services for customers from all regions and societies.

3.3 Products and Services


Global IME Bank offers a wide range of products that caters to customer’s requirement.
Global IME Bank Ltd brings the convenience of networked branches/ATMs and facility
of E-channels like Internet, and SMS Banking. In simple words, Global IME Bank Ltd
brings banking at doorstep. The products and services provided by customer service
department of Global IME Bank have various product and services some of them are
categorized as below

A. Saving Deposits
There are number of saving accounts as per the customers’ requirements. Different types
of saving account are targeted for different customers and of different requirement. Types
of saving accounts are as follows:
Table No. 3.3(a) Interest Rates on Deposits

SN Saving Deposit Rates per Min. Balance


Annum

1. Normal Savings 3.00% 0

2. Global premium saving 5.00% 15,000/-

Global Ladder Saving* 4.00% 100/- to 500,000/-

4.50% 500,001/- to
1000,000/-

5.00% Above 1000,000/-

3. Nari Bachat 3.50% 100/-

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4. Balbalika Bachat 3.50% 1,000/-

5. Senior Citizen Account 3.50% 1,000/-

6. Karmachari Bachat 4.75% 0

7. Students Saving Account 3.50% 0

8. Janmabhumi Bachat 3.75% 0

9. Remittance Deposit Account 4.00% 0

10. BLB/Micro Finance Savings 5.00% 0

11. Social Security Allowances 3.00% 0

12. Foreign Currency Saving Accounts 0.75% 0

B. Fixed deposits
Global IME Bank Ltd has introduced several schemes of Fixed Deposits in order to cater
the needs of valued depositors. It offers attractive rates of varied maturities ranging from
three months to two years. This type of deposit usually offers the highest interest rate.

Table No. 3.3(b) Rates of Fixed Deposit on Global IME Bank

Fixed Deposit Rates per Annum

Duration Institutional Individual

1 month to below 3 Months 1.50% 3.00%

3 months to below 6 Months 2.00% 4.00%

6 months to below 1 year 4.00 % 6.00%

1 year 6.00% 8.00%

Above 1 year to 2 years 5.00% 7.00%

Special Bulk Deposit of 1 year 7.50%

Special Bulk Deposit above 2 years 6.50%

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C. Traffic Voucher:
Another major market Global IME Bank is of Traffic voucher The bank provides
transaction for traffic fines number of people come to pay the fine through traffic voucher
daily around 90-100 people come in bank on average to pay the fines it is very
convenient as it is hassle free.

D. Mobile Banking and Online Banking Services


Global IME Bank has been providing various online banking and mobile banking
services to the customers. Online banking customers can have various types of benefits
like one can see their accounts balance online or from mobile there are various benefits of
using these services some of the benefits of using online banking and mobile banking are
as follows:

• Transaction
a. Fund Transfer
b. Credit Card Payment
c. Shopping
d. Landline Bill Payment
e. Postpaid Bill Payment
f. Recharge
i) NTC GSM Prepaid
ii) NTC CDMA Prepaid
iii) E-Sewa Account

• Request
a. Card Stop
b. Cheque Stop
c. Statement
d. Cheque Book
e. Pin Change

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f. Help

• Credit Card Enquiry


a. Available Credit Limit
b. Available Cash Limit
c. Total Outstanding Amount
d. Minimum due Amount
e. Total Due
f. Last Payment
g. Interest Charged

• General Enquiry
a. Online Account Balance
b. Last Five Transactions
c. Banking Hour
d. Exchange Rate

E. Global IME Easy Buy Easy Pay (EBEP)


It is a Credit Card based loan facility designed to promptly facilitate the customers in
purchasing their desired products instantly without any down payment requirements at
0% interest on EMI basis upon their choice of repayment time frame, as per their
convenience, availed through hassle-free quick processing service enabling the customers
to enjoy the products as and when required.

F. Pay Utility Bill Online


Another service of Global IME Bank Ltd is Pay utility bill online from which customers
can pay general utility bill online. The bill payment of Nepal telecom can be done from
Global IME Bank counters Global Online and Global Mobile Banking services.
Telephone Service is one of many utilities that a person subscribes to Payment of
telephone service is generally done at counters of Telephone Company. This requires a

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person to travel to the telephone company’s office and wait in line for several minutes,
sometimes even an hour with this service Bank’s customers can pay telephone bills
directly from their home or office through use of online banking and mobile banking
services. Currently, Global IME Bank has agreement with Nepal telecom (NT) so that
customers can easily pay their NT telephone bills online or by using mobile phones. In
addition the banks customers can also pay their NT telephone bills by using Global IME
Bank branch. All modes of utility bill payment are free of cost.

G. Any Branch Banking Service (ABBS)


This facility enables the customer of GIBL to deposit or withdraw money and acquire
information from any branch of GIBL. The networks of GIBL give the flexibility of
accessing the account from any of other branches across Nepal. All the branches are
interconnected with state of the art technologies. It is jus like visiting GIBL branch every
time.

3.4 Global IME Bank design and structure


For conducting the bank’s day to day operation smoothly and efficiently, various
departments’ division, branch and sub-branch offices have been set up. In any
organization there are different staffs in different section to perform tasks systematically
way in order to get better result.

An organizational structure defines how activities such as task allocation, coordination


and supervision considered as they are directed towards the achievement of
organizational aims. It can also be viewing perspective through which individuals see
their organization and its environment.

The organization follows a divisional structure. The Divisional structure or product


structure is a configuration of an organization, which breaks down the company into
divisions that are self-contained. A division is self-contained and consists of a collection
of functions which work to produce a product. It also utilizes a plan to compete and
operate as a separate business or profit centre.

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The branch where the intern was assigned, internship was divided majorly in two
departments. One was the customer service and cash department. Another was the loan
department. The lower floor of the office included the Customer Service Department as
well as cash department which was under the supervision of Mrs Richa Neupane
(operation in-charge) and under interim supervision of Ms. Jyoti Bhandari, all the
customer queries

and problems were solved regarding their day to day problems. The overall loan
transaction was supervised by the Loan Manager Mr. Rajan Dangol.

BRANCH
MANAGER
Kabita Phuyal

LOAN OPERATIONS
MANAGER MANAGER
Rajan Dangol Richa Neupane

TELLER CSD REMITTANCE


Reena yadav Jyoti Bhandari Rajina K.C

Figure No. 3.4 Structure of GIBL, Sinamangal Branch Office

3.5 Present scenario of GIBL


Global IME Bank Ltd. (GIBL) emerged after successful merger of Global Bank Ltd (an
“A” class commercial bank), IME Financial Institution (a “C” class finance company)
and Lord Buddha Finance Ltd. (a “C” class finance company) in year 2012. Two more
development banks (Social Development Bank and GulmiBikas Bank) merged with

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Global IME Bank Ltd in year 2013. Later, in the year 2014, Global IME Bank made
another merger with Commerz and Trust Bank Nepal Ltd. (an “A” class commercial
bank).
During 2015-16, Global IME Bank Limited acquired Pacific Development Bank Limited
(a "B" Class Development Bank) and Reliable Development Bank Limited (a "B" Class
Development Bank).
The bank was established with the largest capital base at the time with paid up capital of
NPR 1.0 billion. The paid up capital of the bank has since been increased to NPR 8.08
billion. At present the bank's shares are publicly traded as an 'A' category company in the
Nepal Stock Exchange.
Along with the use of renowned software” Finnacle” that provides real time access to
customer database across all branches and corporate locations of the bank. this state of
the art customer database has also been linked to a Management Information System that
provides easy reach to all possible database information for balanced and informed
decision making. Recent enhancement includes, A disaster recovery system (DRS) of the
Bank has also been established in the Western Region of Nepal (200 kms west of
Kathmandu).
The present situation includes development and enhancement of various products and
services in order to satisfy customer like Global IME Bank on viber facilities, Global
Remit, SME loan approval within 3 days for developing and promoting small and
medium scale business.
Also Global IME Bank is expanding its branches widely all over the country including
remote areas, at present it has 108 branches all over the country.

3.6 Challenges and opportunities of GIBL


3.6.1 Challenges

• Interest rate based competition among various Banks and financial institution due
to high liquidity crunch gives a strong challenge for GIBL to compete with a
market interest rate.

• Face intense competition from the foreign banks

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• Uncertainty due to the fluctuation in the rules and regulations.
• Political instability in Nepal causes a challenge for GIBL to perform its daily
activities in smooth manner.
• Changes in NRB’s policies affect the internal policies of BOKL that ultimately
affect predetermine earning strategies.
• Stiff competition in financial market.

3.6.2 Opportunities
• Due to its huge capital and wide network gain by merger, GIBL has possibility to
provide banking services to all.
• Largest reach to the customers with its largest network.
• Certified as a Class 'A' institution, it is able to expand its product portfolio.
• Geographic expansion of the bank by extending branches
• Liberalization in private sector in Nepal empowers GIBL to boost up its economic
activities.
• Use of advance FINACLE system reduces the extra reporting activities, which
saves the time as well as cost that encourages the continuous profit in near future.
• Highly skillful staffs of GIBL are another internal strength that aid to grab
opportunities by uplifting its efficiency and effectiveness in operation.
• Adoption of advance technology builds an opportunity to be one of the best
commercial bank.
• GIBL main focus is toward customer service which makes its more competitive
and creates opportunities in marketplace.
• GIBL is a highly trusted bank with a large number of prime customers and loyal
customers can easily catch market opportunities by satisfying its customers.

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CHAPTER FOUR
ANALYSIS OF ACTIVITIES DONE/PROBLEM
SOLVED
4.1 Background
As an organization has numerous departments, GIBL also has various departments and
the activities are performed respectively according to their nature and function. During
internship period I the internee got an opportunity to work in the Customer Service
Department of GIBL, (Sinamangal Branch).

4.2 Introduction of the Activities/Department/Section


Customer service is the front desk of any organization. It is the place where customer
makes first interaction with the bank. CSD is the heart of the bank, which directly links
the customer of the bank. Customer service is a series of activities designed to enhance
the level of customer satisfaction. The image and prestige of the bank depends upon the
effective functioning of this department the staff placed in CSD should have rational
knowledge of banking so that they may be able to respond any question raised by
customers. Staffs in the CSD require is to have good communication and interpersonal
skills to maintain a good public relation. Attracting the potential customers and retaining
the existing customers are intended by CSD. Customer service is a series of activities
designed to enhance the level of customer satisfaction and these series of activities are
undertaken by the CSD Hence, all the activities of CSD are focused to customer
satisfaction.

4.3 Role of the Intern and Fitting in the Organization:


CSD is the place where customers can place any queries related to the bank, place their
problems related to bank's services and from where they can collect information about
upcoming programs and new schemes. This department performs regular and clerical
nature of jobs and is the busiest department in the bank. Mostly, it is the CSD which has
to deal with both the old and the new customers and their problems. Opening of accounts,
closing of accounts, issuing cheque books, providing bank statement, issuing debit cards,
issuing balance certificate, offering initial customer counseling etc. are the general
functions performed by the CSD.
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However, during the 2 months internship period, the internee was assigned in Customer
Service Department (CSD). This report focuses on activities under CUSTOMER
SERVICE DEPARTMENT of GIBL, Sinamangal Branch. The Customer Service
Department encircles various activities from opening an account to its closing, providing
account statements as per customer’s demand, issuing and distributing ATM cards etc.

The following activities of Customer Service department were performed by the intern:

4.3.1 Opening of an Account


There are various types of accounts like saving account, current account, fixed deposit
account and the internee helped in opening all kinds of account in GIBL during her
internship.
❖ Saving account
The saving account is individual account or general account. Cheque books are provided
free of charge in all savings account. Physical presence of the person who wants to open
an account is must. During the internship period the internee helped in opening 118
saving accounts.
Requirement for opening saving accounts
• Original citizenship certificate
• 2 copies of passport size photograph
• Latest electricity/water bill having address for the address verification.
• Specimen signature of account holder and lapche.
• He/she is also required to give his/her three generation details and nominee details
who will be the beneficiary of the account after the account holder's death.
• The accountholder should be self present.

Procedure for opening Saving Account.


1. Customer is required to fill up the account opening form containing all the
detailed information.
2. Customer submits the form at the CSD along with necessary documents attached
with it.

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3. Documents and form is verified, details of customer are entered into the system
using software 'Finnacle'. This generates the account number, which provides a
unique identity to the customer.
4. The customer is given the account number and he/she can deposit the amount at
cash counter on the given account number.
5. Customers will be provided the cheque book and ATM card on request. Customer
needs to come the following day in order to collect cheque books. In case of ATM
cards, customer needs to come after 10-15 days.
6. Moreover, the customer can enjoy other facilities of the bank like Mobile Banking
facility, Internet Banking facility, Bank Statement on demand, balance certificate
on demand etc. To obtain each of these facilities, a separate form is required to be
filled.
7. Specimen Signature and photo of account holder is scanned and linked to
customer's account entered into the system. The documents are then approved by
Branch Manager and filed in an individual file and forwarded to the cabinet for
storing.

In case of Joint account:


▪ The party who has not filled the regular account opening form must fill up the
addendum
▪ No objection for anyone signature form must be filled.

In case of Foreign National intern collect following document for account open:
▪ Certified true copy of Passport
▪ Documents which is certified from concerned Embassy
▪ Certified True copy of valid Visa
▪ All documents of personal account for all the joint parties.

In the case of the illiterate, intern obtain thumb impression in the specimen card.
Moreover, the customer is required to furnish photograph as well. No checkbook is
issued and the account holder is required to visit the bank in person for withdrawal.
Terms and conditions should be explained.

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Fill up and submit Reject in case
Account Opening Form requirements are not
at CSD fulfilled

Entry of customer
details into database
using 'finnacle'

Application generates Provide cheque book


unique account number and other facilities on
request

Customers deposit into


the given account
number

Figure No. 4.3.1 Account Opening Procedure

❖ Corporate Account
Corporate accounts are the company account. The required minimum balance of global
IME bank is RS 5000 Opening Corporate Account. There are 4 types of corporate
account and documents required for these accounts are as follows:
▪ Proprietorship Account
▪ Partnership Account
▪ Corporate Account
▪ Account of Institutions/Association/Societies

Proprietorship Account: A business firm registered in the name of a person/proprietor


is known as the sole proprietorship firm. The proprietor enjoys all the profit and bears all
the loss from the operation of the business.
Role of Intern: Intern asks and collects various documents to open proprietorship
accounts, which are listed below.
▪ Registration Certificate

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▪ PAN Certificate
▪ Citizenship Certificate/Passport

Partnership Account: A business firm registered in the name of more than one
individual is known as a partnership firm. The proportion of the share of benefit and loss
among the partners is mentioned in the partnership deed.
Role of Intern: Intern asks and collects various documents to open partnership accounts,
which are listed below.
▪ Registration Certificate
▪ Citizenship Certificate/Passport (of partners)
▪ PAN Certificate
▪ Registered Partnership Deed

Corporate Account: Companies can be both private limited and public limited. They
are called limited because their members are limited to the number of shares they hold in
the company.
Role of Intern: Intern asks and collects various documents to open corporate accounts,
which are listed below.
▪ Registration Certificate
▪ Citizenship Certificate/Passport of Authorized Signatories
▪ PAN Certificate
▪ Memorandum and Articles of Association
▪ Board Resolution

Account of Institutions/Association/Societies: Various clubs, social institutions,


NGOs, INGOs, projects, different bodies of governments also open accounts with the
banks.
Role of Intern: Intern asks and collects various documents to open account of
Institutions/Association/Societies, which are listed below.
▪ Registration Certificate
▪ Citizenship Certificate/Passport (of partners)

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▪ PAN Certificate (if applicable)
▪ Constitution and By-Laws
▪ Citizenship/Passport of Authorized Signatories
Intern follows below points, while opening corporate account:
▪ Legal status of the account holder should be examined to open accounts and
Original documents should be checked and a certified copy should be retained.
▪ Any blank space in the “instruction” and “specimen card” column should be
crossed.
▪ An account number is to be assigned and deposit to be accepted in the deposit slip
(voucher) and a copy to be returned to the account holder.

❖ Opening fixed deposit account

In fixed account, customer keeps their amount into the bank for fixed period of time and
the interest rate of fixed deposit account is usually high GIBL interest rate for FD during
my internship was 12% per annum. FD is for some specific period of time like for 3
months,6 months, year as per customer choice. Interest income is paid on regular interval
and repayment of principal amount is done at maturity. Customer can withdraw the
accrued interest whenever he/she likes. A Fixed Deposit (FD) is opened after a customer
agrees on the interest rate provided and period of deposit with the bank. In case of FD
account, just an application form is to be filled out as the account holder must normally
have any account maintained with the bank. Bank issues a Fixed Deposit Receipt as a
proof of having accepted fixed deposit.
As an intern, the internee helped in opening fixed deposit accounts.

Procedure for opening FD

1. Fixed Account is opened similarly as the saving account. For opening a Fixed
Account, customers are required to open a saving account as well if they don't
have account at the bank.
2. Once the customer deposit the amount, the customer's Fixed Account is credited
by the amount deposited and it is linked with saving account by cash department.

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3. FD account is opened by inputting all details like amount of deposit, number of
years/months, interest rate, name of depositor, date of opening etc.
4. Upon authorizing of the transaction by the Branch Manager, FD receipt is
generated with all of the above mentioned details and handed over to the
customer.
5. The bank keeps a copy of this receipt received by the applicant.

Upon maturity of the FD, the FD account is automatically closed by the system and
principal amount and interest earned is transferred to the saving account after deduction
of taxes.

4.3.2 Form filling


Intern helped the customers to fill up the form. During the internship period various
customer came who find difficulty in filling form and internee helped those customer to
fill up their different form like account opening form, remittance form, debit card
activation form, mobile banking and filling up the deposit slip, Internet banking form
along with helping customers, the internee also filled the form in case of illiterate
customer and disable customers. Verified whether the form was correctly filled up and all
documents were attached or not. If any customer found difficulty in filling up the deposit
slip, intern was required to help him/her.

4.3.3. Document verification


Internee performed document verification function by verifying whether the customer
have original citizenship document or not, whether the electricity bill is authentic and is
up to latest three months or not, whether the location address is as per electricity bill or
not, whether the photograph of person match with person or not and verified whether the
form was correctly filled up and all documents were attached or not.

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4.3.4 Closing account

If the customer wants, he/she can close his/her bank account and terminate all the
transactions with the bank. The account closing process can be completed within a couple
of hours or even in couple of minutes depending upon the availability of all the
authorized personnel required, at their respective desk. Account is closed when a
customer moves away to another country or city; moves to another bank for better
interest rates and better services or for some other valid reasons. The internee not only
perform account opening function but also performed account closing function, internee
helped in closing the account of desired customers who wants to close their account in
GIBL.

Account Closing Procedure

1. The account holder fills an Account Closing Request Form and hands it over to
the CSD that verifies the customer's signature or photo and takes back the
remaining cheque leaves and ATM card.
2. The Account Closing Form is then forwarded to back office to make sure that
customer has no remaining obligation to the bank.
3. After the approval for closure is obtained from the back office, the account is
closed.
4. The remaining amount in the customer's account is paid back to the customer.

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Submit account closing form with
remaining cheque leaves and
ATM card

Verifies customer's details and


signature by CSD

Verifies customer's details and Rejection for account


liabilities by back office closing in case of
disapproval

Account closed

Payment to customer after


deducting charges

Figure No. 4.3.4 Account Closing Procedure

Points to ensure while closing the account:


1. Account closing request has been signed by the authorized signatory.
2. Any due to/from the customer has been set off.

3. Unused cheque leaves and ATM card are received from the customers and tattered.

4. Reason for account closing is received.

5. To the extent possible, authorized signatory should be asked to visit the bank in
personal.

4.3.5 Preparation and distribution of Cheque Book


Cheque book is a negotiable instrument instructing the bank to make payment of a
specified amount to a specified person on a specified date in a specified currency. The
customer who has just opened an account is provided with cheque book of 10 leaves.

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Old customer can request for the cheque book as per their requirement by filling up the
cheque request slip specifying account holder's name, account number, signature and
number of cheque leaves required. Account holder can send others on his/her behalf for
receiving the cheque book.

In urgent cases, cheque book is prepared instantly otherwise customer needs to come the
following day to collect cheque book. Once the cheque is printed, the cheque book is
made. Cheque details are recorded manually in the register, which includes details like
account holder's name, account number, cheque number, printed date and issued date.
Once the customer signs in that register, they are provided with the cheque book.

The internee prepare the cheque by tearing the printed cheque and make it a book by
stapling and writing the name of accountholder and accout number in cheque book, along
with making cheques internee maintain the record of cheque issued by registering in
cheque issuance register and also provided the cheque book to the customer by
maintaining records along with their verified signature, date, accountholder’s name and
account number.

4.3.6 Providing Bank Statement


Statement of account of a customer is a summary of financial transactions occurring over
a period of time on a particular account. Such statements are produced yearly, quarterly,
monthly, weekly as and when the customer requests. These statements are delivered in
printed form. The internee provided bank statement to needed customers by filling up the
Statement Requisition Form specifying own name, account number, authorized signature
and the duration of statement required. Account holder can send others on his/her behalf
by providing signature on the Statement Requisition Form. If signature matches, bank
statement is printed and provided to customer. In case of company account the
application for bank statement with company stamp is required for providing bank
statement.

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4.3.7 ATM Card Distribution
The customer of GIBL can enjoy the ATM facilities at cost of Rs. 1000 which is the
charge up to 3 years. Through ATM card, customer can withdraw their cash without
entering into bank premises from any ATM terminal. ATM cards are sent by NPN
network to the head office and then forwarded to the respective branches. Customer
needs to wait for 10-15 days.
Customer is required to sign the ATM Acknowledgment Form. His/her signature and
face both are verified through “FINNACLE”. Then, a customer is provided with his/her
ATM card after he/she signs in the ATM register. Intern was involved in making ATM
letters and distributing ATM card. The previous ATM cards were replaced by new EMV
chips ATM card during the internship period of intern and the intern arranged almost 500
new ATM cards and their PIN number slips alphabetically and distributed to the
respective customer by calling them through telephone, maintained the record of ATM
card number, accountholders name and date in card issue book and provided card to
accountholder

4.3.8 ATM card activation


The intern not only distributed 500 new by verifying the specimen signature of
accountholder.
EMV ATM cards and requested ATM to customers by maintaining record but also
activated those card services using ‘FINNACLE’ software.

4.3.9 Document Uploading on Bank Server


Banks keep their documents in both printed and in digital form. There are procedures to
upload the documents into the bank server and the intern scanned and uploaded the
document to global ekagaj through finnacle software.

4.3.10 Handled Telephone Calls


CSD department is one of the busy departments of the bank. Telephone calls never stop
ringing, as the responsible staff those calls has to be received and dealt according to its
necessity. But when staff is busy, the intern received the call and important calls are

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passed to other department and rest were handled by self by answering those calls and
answering their queries.

4.3.11 Recording Cheque book issue, debit card issue


There are various books maintained in bank which may be related to cheque book issue,
debit card issue, etc. These books are filled up by intern for future reference of the
activities. It is the duty of the intern to record the cheque book issued and debit card
issued every day.

4.3.12 Calling existing customer to update KYC


KYC forms of existing customers have to be updated as directed by NRB’s latest
directive. So Intern called many customers to visit bank with necessary documents like
copy of citizenship, utility bill payment receipt and one passport size photo to update
their KYC and helped the customers to fill up KYC form and updated it.

4.3.13 Customer Counseling


Customer Service Department is the first place where a potential customer approaches to
the bank. It is the primary duty and responsibility of the bank to provide the information
of availing credit products and their interest rate. This department is concerned with
counseling with the customers that can be both new or regular clients concerning their
queries and confusions about the product or services provided by the banks to the
customers. Internee provided necessary information about the products and services and
also often provided the essential suggestions to the customer.

4.3.14 Service counseling


Various forms of services provided by GIBL are e-banking, ATM, credit card, debit card,
loans, deposits, NTC Mobile Bill Payment, Premier Banking. CSD is responsible in
providing information about various services provided by the bank to the customer.
Interns helped in providing necessary information about these services to customers and
also helped employees in this work.

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4.3.15 Account reactivation
If customers do not use their account in regular basis then account will bock
automatically for safety of the customer. As per the GIBL policy the concern Account
Holder should use minimum once in six months to maintain their account active. The
Intern helped filling up the Application of Dormant form, the KYC form along with
signature card that requires two photos and citizenship of particular account holder.
Intern also facilitates to verify the signature of particular account holder and reactive the
dormant account by using FINACLE system of bank.

4.3.16 Provided Balance Certificate


Balance certificate is also issued through CSD. Balance certificate is issued by the bank
to the customers in order to certify the balance maintained in the account of customers.
Balance certificate act as a proof that the concerned customers have the mentioned
balance in his/her account. Balance certificate is specially issued by the individual
customer’s in order to present as evidence to the Embassy if they are trying to go abroad.
As per the requirement of customer, intern facilitates to fill the “balance certificate
request” and after printing balance certificate intern goes to put a GIBL’s stamp to make
balance certificate valid.

4.3.17 Balance check


Global IME Bank Ltd facilitates their customers with balance check facilities through
CSD. It only provides information to the respective account holders about balance in their
account. If the account holder is unable to come then his /her representative can know the
balance by bringing the application written by account holder with his/her signature, if
signature matches then only information regarding balance will be provided. However,
the intern was no fully authorized to operate Finnacle Software. The internee checked
balance and helped in balance inquiry of the customer by proving the information related
to their balance and account state using that software.

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4.4 Understanding of System, Processes and Rationale
During the internship period of 2 months, the intern was place in the customer service
department where the internee got change to gain the practical knowledge about how that
department is handled in GIBL.
Mrs. Jyoti Bhandari supervisor taught and guided the internee about how to record the
important information while issuing and distributing cheques, ATM cards, how to help
customers by filling form, by providing information, by checking balance and in overall
how to perform activities of CSD and how to handle customers. later all verification
needed activities was verified by the supervisor.
The experiences during the internship were so amazing and fruitful in the process of
learning and understanding about GIBL system and process.
• In the initial phase of learning during internship intern did various kinds of
mistakes unknowingly in which the supervisor helped in every possible way.
• Using the ‘Finnacle’ software for the first time was not so easy but along with the
supervision intern got a chance to use the software.
• Bank perform every activities and transaction according to its system and
understanding its system of operation in every task was a great challenge for the
intern, coping with GIBL structure, procedure and culture was a great experience
of learning for the intern in which intern tried best to learn and perform the task
effectively and efficiently.
• Distribution of cheques, ATM cards etc are done with specific procedure by
maintain records and signature verification and verification is done by comparing
the customer signature with that upload at system.
• Every activity in CSD requires carefulness in regarding system and process of
activities.

4.5 Problems, Challenges and How these Problems were Solved


Since every organization has to face some sort of problems or challenges there are no any
organizations which are free of problem or challenges. Various issues and problems
encounters while conducting their operations in any organization.

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The main challenges for the GIBL are high competitive market. There are many
commercial banks in Nepal which are competitive having high brand value in market.
Numerous problems were arise in GIBL and they were addressed by bank staff including
the intern among them some are mentioned below:

4.5.1 Problems Identification and solved


Several problems arise in the bank and in CSD. During the internship period of intern
various problems were identified and solved were by an intern, which are as follows:

• Problem of delay in service due to pressure at CSD


There is only 1 employee at the CSD and during rush hour, customers need to
wait for long causing delay in service delivery and customer inconvenience.
Customers often forget their authorized signature and come to CSD to ensure their
signature. This keeps CSD pretty busy and makes delay in service of other
customers.
The delay in service due to lack of enough CSD employee was served through the
intern help, intern helped to solve this problem by performing all the activities of
CSD under the guidance of supervisor.

• Delay in ATM card arrival and functioning


GIBL customers have to wait for 10-15 days for arrival of Visa ATM card.
Customers often complaint about this delay and Customers also complain
regarding not communicating about the ATM annual charge during account
opening.

• Problems related to the malfunctioning of the ATM Machines:


Another problem that the CSD should face daily is to manage and solve the
malfunctioning of ATM machine due to which customers had to face problems
while withdrawing cash or while balance inquiry from the ATM machine.
The intern deals with this problem by clarifying the actual scenario and
apologizes if it is due to the fault of the machine.

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• Problem regarding incomplete documents and information.
Many customers come to open an account without complete documents promising
to bring it later on. This creates difficulty in document filing. Moreover,
customers who come for closing their account do not bring their ATM card and
remaining cheque leaves. Unless the necessary documents are brought by the
customers, bank cannot proceed further.
In such case the intern helped by politely asking to fulfill all the necessary
formalities to customers.

• Problems related to the whole system down:


Sometimes CSD officer face difficult situation due to the system down. Once in a
blue the system down problem occurs in bank which creates issues in performing
functions which are done through system.
In this situation the intern provides information about the system down to
customers and carried out the activities such as filling up various application
form, sign in a signature card, other application forms as per the need of
customers that do not require a system that aid to maintain the patient of
customers waiting for system.

• Problem related to mobile banking and e banking


Due to information technology problem of GIBL, various problems in mobile
banking and e banking arises and some customers often complain about not
getting the SMS alerts after the withdrawal or deposit.
In those situation intern helped customer informing issues of it with bank
employees and in MIS of global.

• Problems related to the mistakes due to the error in the system:


Sometimes the ATM Machine doesn’t provide the cash but the account is debited.
Sometimes due to various reasons, the customer’s account would be debited twice
for the same charge or something similar to this occurs. This and other these kinds

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of system occur due to error in system and also due to mistake by bank staffs,
these errors makes the customer dissatisfied and hence the dissatisfied customer
arrives at the CSD.
These kinds of problems are to be handled by intern along with the CSD officer
by filling form and by following the procedure; those accounts which were
debited mistakenly are credited.

• Problem-related to the change of rules and regulations:


The rules and regulations of bank keep on changing over the period of time. Rules
and regulations related to the operation of the banks, the interest rates, and the
charges are revised time to time to cope with the dynamic environment but the
customers don’t easily accept the change.
Hence the intern informs the customer about the change, its need and relevance to
the organization which is really a hard and tedious job to perform.

4.6 Observed Gap:


Knowledge gained from the academic courses seemed to be totally different in practice.
Although there is the huge gap between theory and practice, the concept of the theory is
essential in the workplace. Literature is the base to perform any task in the working
environment. Socio-Cultural factors, the interpersonal relationship seems to be simple in
theory but in the practice maintaining the interpersonal relationship and mixing with
society is a crucial task. Dealing with various kinds of customers effectively can be
sharpening through the practice. Depth knowledge from the book about customer
relationship cannot be as effective as that in practice.
Whenever intern learn something through the help of books, get a mental picture as to
what should be, but after the completion of the internship the intern found out that the
textbooks and the real world situation are two completely different matters because what
was learnt in the textbooks are not updated from time to time whereas in the real world
one has to be updated in order to compete and get success.

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CHAPTER FIVE
CONCLUSION/LESSON LEARNT

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5.1 Conclusion
Global IME Bank is one of the leading commercial banks in Nepal which aspires to
position itself as a progressive, cost-effective and customer friendly institution thereby
providing comprehensive financial and related services to customers. This 2 months
internship period has been a fruitful experience for the present as well as for the future.
A thought that, besides books and knowledge of the syllabic books, there are a lot of
things to be known, understood and learnt. It was really great opportunity to get to know
new kinds of people, new kinds of experiences, new kind of environment and a
completely new atmosphere around us. It was learning by opportunity and had been
successful to make a change within myself.
Being an intern wouldn’t have been much interesting without the support of the Global
friendly staffs. The internship has worked over the development of communication and
interpersonal skill of the internee. The internee has also learnt that the behavioral issues
are the most important inside the organization culture and the customers are satisfied
when they are behaved properly. The study refers to the CSD that deals directly with the
customer’s enquiries, handling complaints and service distribution.

While concluding this report, the intern is intensely satisfied with the internship and its
outcome. The internee got the life-time memorial experience. Also the internee got to
realize that the customer satisfaction is the first and foremost aspect of any of any
organization (i.e. Banks referring to this report) and the CSD involves all those activities
that serve in satisfaction of the customers. Hence, the bank must analyze such factors to
gain success in the future by fulfilling the customer’s needs and demands. The Internee is
much delighted and feels honored to have got chance to complete internship in such a
reputed bank and hope this will prove to be advantageous for my career.

5.2 Inference drawn/intern’s key observation


From the observation made on both the staffs and the current customers, analysis was
conducted as per of their reactions. Out of that, some important and useful findings
gathered data as follows:

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• The bank has altogether 108 branches inside and outside the valley. From the
starting date it is able to deliver the quality and best services with latest
technology providing various banking services i.e. ATM, E-banking, etc. to retain
its customers.
• Within this short time period the bank has introduced variety of products in order
to attract large pool of customers and is still updating new products.
• The organization structure is simple. All employees are skilled and motivated.
There is a good organizational culture and cooperative working environment.
• Analyzing the customer by their occupation, service holders accounts highest
followed by students and business persons.
• In regards to demand of new services, majority of customers demanded quick
response and problem solving at GIBL.
• Maximum number of people rated high interest rate (saving) for using GIBL
services while compare to other services.
• From this research, several issues are found which needs to be emphasized for
GIBL’s greater success. Most of the information was gained from the formation
of the structure interview as well as the internal database of GIBL. In regard to the
CSD survey as an assignment, we had been taken into consideration for the
feedback of both internal and external customers for the greater accuracy.
• To achieve its mission of establishing itself as one of the potential national
development banks, GIBL should meet the customers’ expectation at any cost and
delight them always.
• GIBL with its various products and services with new technology, quality
manpower and resources, full dedication towards customers. Quick and reliable
services for inward and outward remittance correspondence with different foreign
banks and money transfer agency. The bank is able to achieve its goals and
objectives.
• Together with that, the CSD could work on the minor flaws that it has and work
on it to make itself as good as the other departments of the bank. The CSD is a
very important department which gives an impression to the outsiders about the
bank, so it needs to be good in order to attract and retain.

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5.3 Overall experience, learning, knowledge gained
The intern found this bank is the organization of effective management, well trained,
experienced and competent officials, establishing with the aim of being the leading bank
known for its excellent service. The bank is achieving high and progressive market value
in its customer share. But the bank has some problems in executing its strategies and
extending in their product line since there is frequent change in rules and regulations,
foreign remittance, competition in the market is increasing.

Working in real life (Bank) is not an easy task. It requires high dedication, commitment,
and discipline as a single carelessness hampers the overall performance of the
organization. The intern is also able to grasp various new knowledge as well as the
practical implications of theoretical knowledge after the two months internship exposure.

During the period of internship at GLOBAL IME Bank, the interne was cooperatively
guided by all the staffs for gaining in-depth banking knowledge. The learning
environment of GLOBAL IME Bank was pleasant and outstanding. Therefore, the major
lessons that are learned during internship are:

• Good communication skills:


Interaction with the customer was a perquisite while working in the CSD
department. Communication about the products and services to the customers and
dealing with their queries enhanced the communication skills of intern in best
way. The good communication skills will surely help intern in every aspect of
career.

• Real time learning experience:


The responsibilities and jobs assigned during the internship helped to gain better
insight on the practical level. While working as an intern for 2 months in GIBL,
the intern analyzed most of the theoretical knowledge learnt in Bachelor Degree
being practically implemented in the work place. The marketing concept of
customer focused strategy, accounting concept, computer applications and many
other management theories/concepts were being applied practically.

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• Relationship building:
Customer relationship must be retained by bank. This relationship was strongly
built by interacting with the customers. Friendly terms were maintained so that
attachment to developed with the staffs and bank as well. The art to maintain
relationship with customer was learnt by internee by effectively handling
customer with politeness and responsiveness.

• Time Management and handling pressure


Management of time while dealing with the customers was very important.
Completion of the tasks assigned within time a speculated time turned out to be a
vital strength. The intern learnt to manage time and pressure in the duration of 2
months of internship. The internee had to manage college timing as well as office
timing so the management of the time was the major thing that the internee learnt.
Another main thing internee learnt was how to finish more work in less time how
to manage work and how to handle pressure at workplace.

• Energy determination and work rate


The determination to learn more has always been present due to which the
eagerness to learning new things and working accordingly in various departments
has never faded away. The internee learnt to increase work rate and also to do
multi task at a time.

• Confidence level boost up


The tenure of eight weeks of internship definitely boost up the confidence level of
internee.Nervousness often hampers the work performance whereas over
confidence may also lead to failure,maintaining a required level of confidence
while performing is required which is learnt by intern.

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• Knowledge about the organizational environment and work
culture
The interns have been able to gain experience and knowledge about the
organizational environment and work culture of GIBL. Coping with the
organization environment and culture is must in order to understand it and to
perform in it during internship intern got familiar with GIBL environment and
culture.

5.4 Recommendations
The study drew some recommendations to improve the present situation of Global IME
Bank Limited. After detail analysis some suggestions have been recommended on the
basis of major finding to improve the bank.
• The practice of even friendlier working environment that results in goal
achievement.

• Need to deal with different types of customer with heterogeneous needs and
desire.

• These days even the small financial institution offer the traditional banking
services. So to become competitive in such market bank must focus on the latest
technologies in banking services.

• It would be better if GIBL provide information about career opportunities for the
youngsters by vacancies and internship etc. It will help students to their career
development and also increase the positive image of the bank.

• The process of taking customer’s feedback and responses will help the bank to
fulfill the gap between service provider (bank) and the customer expectation. So
GIBL must focus on customer’s viewpoint in order to satisfy the needs of the
customer.

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REFERENCE/BIBLIOGRAPHY

Books
Cornett, Marcia Millon and Saunders, Anthony (2007). Financial Markets and
Institutions:

Kolb, Robert W. and Rodriguez, Rich ardo J. (1996). Financial markets and Institutions.

Manandhar, K.D. & Pokhrel, S.B. (2007). Marketing Financial Services.


Kathmandu: AsmitaPu

Shrestha, M.K.(2008),”FIM”,Asmita publication, Nepal.

Websites
http://www.globalimebank.com/global-ime-bank-profile.html

http://www.globalimebank.com/assets/upload/downloads/GIBL_Interest_Rate.pdf

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