The concept of banking in Nepal dates back to the first half of the 20th century. Nepal Bank Limited (NBL) was the first bank to be established in Nepal. It was founded in 1937 AD. The establishment of Nepal Bank Limited marked the beginning of an era of formal banking in Nepal. In this article, we present to you the List of Banks in Nepal. Nepal Rastra Bank (NRB) was established in 1956 AD as the Central Bank of Nepal. It is the monetary, regulatory and supervisory authority of banks and financial institutions.
In other words, a sound banking system is important for the smooth development of the banking system. It can play a key role in the economy. It gathers savings from all over the country and provides liquidity for industry and trade. After that, in 1957 A.D. Industrial Development Bank was established to promote industrialization in Nepal, which was later converted into Nepal Industrial Development Corporation (NIDC) in 1959 A.D.
Rastriya Banijya Bank was established in 1965 A.D. as the second commercial bank of Nepal. The financial shapes for these two commercial banks have a tremendous impact on the economy. That is why banks exist in spite of their bad position.
But, for more than two decades, no more banks have been established in the country. However, after declaring the free economy and privatization policy, the government of Nepal encouraged foreign banks for the joint ventures in Nepal.
Today, the banking sector is more liberalized and modernized and systematically managed. Above all, there are various types of bank working in the modern banking system in Nepal. It includes central, development, commercial, financial, co-operative and Micro Credit (Grameen) banks. Technology is changing day by day. And changing technology affects the traditional method of the service of the bank.
1. Commercial Banks (Class ‘A’ Banks)
2. Development Banks (Class ‘B’ Banks)
3. Finance Companies (Class ‘C’ Banks)
4. Micro Credits Development Banks (Class ‘D’ Banks)
Therefore, as of 13th April 2020, there are 27 commercial banks, 22 development banks, 23 financial companies, 92 Micro Credit (Grameen) development banks, and 16 saving and credit co-operation(licensed by Nepal Rastra Bank) are established so far in Nepal as of 13 April 2020.