Government Banks in Nepal! Why people are interested in government-owned banks than private?

What do you think if you need to visit any government office for a small work – lets say of 10 minutes?

I am not sure what you think. But when I think about this, I think the whole day will get wastes as there is very slow work. Even we can not meet the desired person most of the time as they have gone for “Chiya Khana”. But the scenario is not same for all the government office as well.

Have you visited government banks? Have you taken any services from there? Recently, I was on 2 different government banks for the work. And the service was amazing. Almost faster and effective than the private banks. From that day, my opinion on government banks changed.

Why people prefers government banks? For what purpose people are more fascinated towards government banks? Before answering this question, lets know about the banks in Nepal.

Banks in Nepal

Nepal Rastra Bank (NRB ) has categorized Nepali banking and financial institutions in four categories. NRB is the regulatory organ of the country for all the banking and financial institutions (BFIs).

Four categories of BFIs in Nepal are:

Category of Banks	Type
Class A	Commercial Banks
Class B	Development Banks
Class C	Finance Companies
Class D	Microfinance Companies

As of April 2020, as per the data of Nepal Rastra Bank, the number of BFIS are

Category of Banks	Number of Banks
Class A	27
Class B	24
Class C	22
Class D	90

Government Banks in Nepal

The number of government banks is very less in comparison to private banks. There are only three government owned banks. They are:

• Rastriya Banijya Bank
• Krishi Bikash Bank (Agriculture Development BAnk)
• Nepal Bank Limited

Nearly 16% of banking assets are taken by these three government banks in Nepla. Interesting fact is Nepal Rastriya Banijya Bank is only the bank with branches in all districts in Nepal.

Why people prefer government banks in Nepal?

All government banks have lower base rate on loan on comparison to private banks. So, almost every firms and companies who wants loan prefer the government banks.

Not only about the interest rate in loan, but the customer service of government bank is not bad. Rastriya Banijya Bank received the ‘Best Bank of CSR’ award from Asia Money. This also shows how the image of government banks.

Similarly, government banks are also having digitization. There is nothing less in digital transaction of government banks with comparison to private banks. Their smart banking app for mobile is just awesome!

Have you ever visited government banks? What is your opinion? Feel free to write on comment box below.