Banking is an essential part of modern life. Whether you’re saving money, applying for a loan, or simply checking your balance, understanding how banks work can help you make better financial decisions. This guide will walk you through everything from types of banks in Nepal to the terms used by bankers.

List of banks in Nepal

Bank Name	Headquarters/ Corporate Office	Working Area	Paid-up Capital	Class	Branches & Extension Counters
Agriculture Development Bank	Ramshahpath, Kathmandu	National	रु 19.29 Arab	Class A	306
Citizens Bank International	Narayanhitipath, Kathmandu	National	रु 14.77 Arab	Class A	208
Everest Bank	Lazimpat, Kathmandu	National	रु 12.94 Arab	Class A	143
Global IME Bank Limited	Kamaladi, Kathmandu	National	रु 38.12 Arab	Class A	443
Himalayan Bank	Kamaladi, Kathmandu	National	रु 21.66 Arab	Class A	212
Kumari Bank	Naxal, Kathmandu	National	रु 26.23 Arab	Class A	360
Laxmi Sunrise Bank	Hattisar, Kathmandu	National	रु 24.35 Arab	Class A	299
Machhapuchhre Bank	Lazimpat, Kathmandu	National	रु 11.62 Arab	Class A	185
Nabil Bank	Teendhara, Kathmandu	National	रु 27.06 Arab	Class A	296
Nepal Bank	Bhugol Park, Kathmandu	National	रु 14.69 Arab	Class A	296
Nepal Investment Mega Bank	Durbarmarg, Kathmandu	National	रु 34.13 Arab	Class A	355
Nepal SBI Bank	Kamaladi, Kathmandu	National	रु 10.50 Arab	Class A	130
NIC Asia Bank	Thapathali, Kathmandu	National	रु 14.92 Arab	Class A	486
NMB Bank Nepal	Babarmahal, Kathmandu	National	रु 18.37 Arab	Class A	219
Prabhu Bank	Anamnagar, Kathmandu	National	रु 23.54 Arab	Class A	395
Prime Commercial Bank	Kamalpokhari, Kathmandu	National	रु 19.40 Arab	Class A	201
Rastriya Banijya Bank	Singhadurbar, Kathmandu	National	रु 15.64 Arab	Class A	361
Sanima Bank	Narayanchaur, Kathmandu	National	रु 13.58 Arab	Class A	141
Siddhartha Bank	Naxal, Kathmandu	National	रु 14.09 Arab	Class A	205
Standard Chartered Bank	Naya Baneshwor, Kathmandu	National	रु 10.04 Arab	Class A	17
Garima Bikas Bank	Lazimpat, Kathmandu	National	रु 5.68 Arab	Class B	135
Jyoti Bikas Bank	Kamaladi, Kathmandu	National	रु 4.40 Arab	Class B	123
Kamana Sewa Bikas Bank	Gyaneshwor, Kathmandu	National	रु 3.51 Arab	Class B	131
Lumbini Bikas Bank	Dillibazaar, Kathmandu	National	रु 3.62 Arab	Class B	91
Mahalaxmi Development Bank	Durbar Marg, Kathmandu	National	रु 4.17 Arab	Class B	104
Muktinath Bikash Bank	Kamaladi, Kathmandu	National	रु 7.05 Arab	Class B	191
Sangrila Development Bank	Baluwatar, Kathmandu	National	रु 3.43 Arab	Class B	112
Shine Resunga Development Bank	Kalikanagar, Butwal	National	रु 4.86 Arab	Class B	90
Saptakoshi Development Bank	Main Road, Biratnagar	National	रु 0.83 Arab	Class B	35

Note: This information has been gathered from Wikipedia and is updated on today's date (24th February 2025).

Types of Bank Accounts in Nepal: A Complete Guide

Choosing the right type of bank account in Nepal can make managing your finances easier and more efficient. With various options available, it's essential to understand the features, benefits, and uses of each account type to pick the one that fits your needs.

1. Savings Account: Secure Your Money and Earn Interest

A Savings Account is the go-to option for individuals who want to save their money and earn some interest while still having easy access to their funds. This account is ideal for people who do not need to make frequent large transactions but still want to keep their money safe.

Key Features:
- Low minimum balance requirements.
- Earns interest (interest rate varies by bank).
- Convenient for everyday transactions like deposits and withdrawals.
- Easily accessible through ATMs, mobile banking, and online banking.
Best For: Individuals, students, or anyone looking to save for the future with easy access to funds.

2. Current Account: Perfect for Business Transactions

A Current Account is specifically designed for businesses, entrepreneurs, and anyone who requires frequent transactions. This type of account does not earn interest, but it offers unlimited deposits and withdrawals. It's an essential account for anyone involved in business, as it allows for smooth and fast financial operations without any restrictions.

Key Features:
- No interest earnings.
- Unlimited deposits and withdrawals.
- Cheque book facility and online banking features.
- Suitable for high-volume transactions.
- Often requires a higher minimum balance.
Best For: Businesses, self-employed individuals, freelancers, and anyone with frequent transactions.

3. Fixed Deposit Account: Grow Your Savings with Higher Interest

A Fixed Deposit (FD) Account offers a way to grow your savings by locking in your funds for a set period, ranging from a few months to several years. The longer the term, the higher the interest rate. FDs are a great choice for those looking for a safe and steady investment.

Key Features:
- Higher interest rates compared to savings accounts.
- Funds are locked for a fixed period (early withdrawal may incur penalties).
- Various tenures available, allowing flexibility.
- Guaranteed returns based on the agreed interest rate.
Best For: People looking for long-term investment options and those who don’t need immediate access to funds.

4. Call Deposit Account: Flexibility with Guaranteed Returns

A Call Deposit Account is a hybrid account that combines the features of both savings and fixed deposit accounts. With a call deposit, your funds are fixed for a short-term period (usually 7-30 days), but you can withdraw them with prior notice. It's ideal for people who want higher returns than a savings account but with more flexibility than a fixed deposit.

Key Features:
- Earns higher interest than a savings account.
- Funds are locked for a short period (typically a month or less).
- Withdrawal can be made with prior notice.
- Ideal for short-term investments with flexibility.
Best For: Individuals or businesses who want to park their surplus funds for short periods without compromising too much flexibility.

5. Recurring Deposit Account: Save Regularly and Earn Interest

A Recurring Deposit (RD) Account allows you to save a fixed amount every month for a pre-determined period and earn interest on it. It’s perfect for people who want to build up savings but cannot deposit a large sum all at once. Similar to a fixed deposit, the funds are locked in for the agreed term.

Key Features:
- Monthly deposits over a fixed period.
- Higher interest rates compared to savings accounts.
- Helps build a disciplined saving habit.
- Ideal for future goals like education, weddings, or a down payment on a home.
Best For: People who can save regularly and are looking for a steady, low-risk investment.

6. Joint Account: Share Finances with a Trusted Partner

A Joint Account is an account held by two or more individuals, typically family members or business partners. This account is useful for managing shared expenses, such as household bills or business transactions.

Key Features:
- Can be operated by either or both account holders (depending on the agreement).
- Great for couples, families, or business partners.
- Shared access to funds and management.
- Similar features to a savings or current account.
Best For: Married couples, family members, or business partners looking to manage finances together.

7. Non-Resident Nepali (NRN) Account: For Nepali Citizens Living Abroad

An NRN Account allows Nepali citizens living abroad to manage their finances back home. It offers the benefits of both local and foreign currency accounts. This type of account is ideal for Nepali nationals who want to invest in Nepal, save money, or transfer funds for family purposes.

Key Features:
- Available in both local and foreign currencies.
- Can be used to send and receive money internationally.
- Provides easy repatriation of funds.
- Offers tax benefits for income earned abroad.
Best For: Nepali citizens residing abroad who want to maintain a financial link with Nepal.

8. Foreign Currency Account: Manage Funds in Foreign Currencies

A Foreign Currency Account allows individuals or businesses to maintain accounts in foreign currencies such as USD, Euro, or GBP. It is typically used by people or companies involved in international trade, remittances, or those who receive foreign earnings.

Key Features:
- Available in major global currencies.
- Useful for businesses with international dealings.
- Can be used to reduce conversion fees for currency exchange.
- Suitable for travelers, expatriates, and international businesses.
Best For: Importers, exporters, international businesses, or individuals who need to manage foreign currency transactions.

Conclusion: How to Choose the Right Bank Account for You

Selecting the right type of bank account in Nepal depends on your financial goals and needs. Whether you're saving for the future, managing daily transactions, or investing for the long term, there’s an account for every purpose. Consider the features, benefits, and limitations of each type to determine which is the most suitable for your financial situation.

Make sure to consult with your bank to understand all the available options and their specific terms, and you’ll be on your way to smarter financial management.

Additional Tips:

Watch Out for Fees: Some accounts, especially current and business accounts, may have monthly maintenance fees. Always check the fine print.
Interest Rates Vary: Be sure to compare interest rates for savings, fixed deposit, and call deposit accounts before committing.
Banking Facilities: Look for banks offering convenient mobile banking, ATM access, and online services to make managing your account easier.

By understanding the types of bank accounts and their unique features, you can make an informed decision and take full control of your finances in Nepal.

Common Bank SMS Notifications and Their Meanings: A Comprehensive Guide

In today's digital banking world, banks send various SMS alerts to keep customers informed about their account activity. These alerts can be crucial for managing finances, preventing fraud, and staying on top of your financial commitments. Below are some of the most common bank SMS notifications, along with their meanings, to help you understand your alerts better.

1. “Your account has been credited with NPR XXXX.XX”

Meaning: This notification confirms that a specific amount has been successfully deposited or credited into your account. This could be a salary, payment, or transfer from another account.
Example: "Your account has been credited with NPR 5,000.00."
What to do: Check your account balance to verify the deposit and ensure it's correct.

2. “Your account has been debited with NPR XXXX.XX”

Meaning: This message informs you that a certain amount has been deducted from your account. It could be for a purchase, a bill payment, or a loan EMI.
Example: "Your account has been debited with NPR 1,200.00."
What to do: Verify the transaction details to ensure that the deduction was authorized and correct.

3. “Your EMI of NPR XXXX.XX is due on [date]”

Meaning: This reminder alerts you that your Equated Monthly Installment (EMI) for a loan is due. It's important to pay your EMI on time to avoid penalties or interest charges.
Example: "Your EMI of NPR 8,500.00 is due on 25th February 2025."
What to do: Make the payment before the due date to avoid late fees.

4. “Your account balance is below the minimum required limit”

Meaning: This is an alert informing you that the balance in your account has fallen below the required minimum limit. Some accounts require you to maintain a certain balance to avoid penalties or to earn benefits.
Example: "Your account balance is below the minimum required limit of NPR 2,000.00."
What to do: Deposit funds into your account to maintain the required minimum balance and avoid fees.

5. “Your last login was from [location/device]”

Meaning: This message notifies you of the recent login to your online banking account, including the location or device used. It's a security measure to alert you to any suspicious activity.
Example: "Your last login was from New York, USA, on a MacBook."
What to do: If you didn’t log in from that location or device, immediately contact your bank to report a possible security breach.

6. “Transaction of NPR XXXX.XX made using your debit/credit card”

Meaning: This alert informs you of a transaction made using your card, including the amount spent and the merchant name (if available).
Example: "Transaction of NPR 3,500.00 made using your debit card at ABC Supermart."
What to do: Review your recent purchases and ensure it was a transaction you authorized.

7. “Your fixed deposit of NPR XXXX.XX has matured”

Meaning: This notification informs you that your fixed deposit (FD) has reached its maturity date and your principal amount along with interest has been credited to your account.
Example: "Your fixed deposit of NPR 50,000.00 has matured. Principal + Interest credited to your account."
What to do: Decide whether to withdraw the funds, renew the FD, or transfer the amount to another account.

8. “A cheque of NPR XXXX.XX has been presented for payment”

Meaning: This SMS notifies you that a cheque issued by you has been presented for payment, and the bank is processing the transaction.
Example: "A cheque of NPR 12,000.00 has been presented for payment from your account."
What to do: Ensure that you have sufficient funds in your account to cover the cheque amount and avoid bouncing.

9. “Your credit card payment of NPR XXXX.XX is due on [date]”

Meaning: This message acts as a reminder for your upcoming credit card payment due date. It includes the payment amount that needs to be paid to avoid interest charges.
Example: "Your credit card payment of NPR 7,200.00 is due on 5th March 2025."
What to do: Make sure to pay the due amount before the due date to avoid penalties.

10. “Your account has been temporarily blocked for security reasons”

Meaning: This alert informs you that your account has been temporarily blocked, usually due to suspicious activity or failed login attempts.
Example: "Your account has been temporarily blocked for security reasons. Please contact the bank for assistance."
What to do: Contact your bank immediately to resolve the issue and restore access.

11. “Your loan application has been approved/rejected”

Meaning: This notification informs you of the status of your loan application. It could be an approval or rejection.
Example: "Your loan application for NPR 100,000.00 has been approved."
What to do: If approved, review the loan terms. If rejected, check the reason and consider reapplying later.

12. “You have received an international money transfer of NPR XXXX.XX”

Meaning: This SMS alerts you to a money transfer received from abroad. It provides details of the amount transferred.
Example: "You have received an international money transfer of NPR 25,000.00 from John Doe, USA."
What to do: Confirm the sender’s details and check if the amount matches what was expected.

Conclusion: Stay on Top of Your Bank Account with SMS Alerts

Bank SMS alerts are an easy way to stay informed about your financial transactions and ensure that you’re on top of any important updates or issues with your account. By understanding the meanings of different notifications, you can take prompt action when necessary, whether it’s making a payment, managing your account balance, or securing your information from fraud.

Remember to regularly review your account statements and stay vigilant with your bank notifications to ensure your financial well-being.

Essential Banking Terms and Their Explanations: A Guide to Improve Your Banking Knowledge

Understanding key banking terms can help you make informed decisions, avoid unnecessary fees, and navigate your finances with confidence. Below are some essential banking terms you should know:

1. Overdraft

Meaning: An overdraft allows you to withdraw more money than what’s currently available in your account, up to a pre-approved limit. However, this facility usually comes with interest charges and fees.
Example: If your account balance is NPR 500, but your bank provides an overdraft limit of NPR 10,000, you can withdraw up to NPR 10,000, even though you don't have sufficient funds. The bank will charge interest on the overdrawn amount.
What to consider: Use overdrafts carefully as they often have high-interest rates and can lead to unexpected costs if not managed well.

2. Collateral

Meaning: Collateral refers to an asset that you pledge to a lender in order to secure a loan. If you fail to repay the loan, the lender has the right to seize the collateral to recover the outstanding amount.
Example: When you take a home loan, your house may serve as collateral. If you default on the loan, the bank could foreclose on your property to recover its money.
What to consider: Be mindful when offering collateral. If you fail to repay your loan, you risk losing the asset.

3. Dormant Account

Meaning: A dormant account is one that has had no transactions (such as deposits, withdrawals, or transfers) for a prolonged period, typically 6 to 12 months. Banks may charge maintenance fees on dormant accounts and may also restrict access to the account until reactivated.
Example: If you haven’t made any transactions in your savings account for a year, the bank may consider it dormant and notify you to either reactivate it or close it.
What to consider: Regularly monitor your accounts to ensure they remain active and avoid unnecessary fees.

4. Real-Time Gross Settlement (RTGS)

Meaning: RTGS is a system used by banks for the real-time transfer of large sums of money between them. This system ensures that the transaction is settled immediately without any delay, making it suitable for high-value transfers.
Example: If you need to transfer NPR 500,000 to a business partner in another city, RTGS ensures that the amount is transferred and settled immediately, with no waiting period.
What to consider: RTGS is typically used for large transactions and may come with higher processing fees compared to other transfer methods.

5. Know Your Customer (KYC)

Meaning: KYC is a mandatory process where banks collect and verify the identity of their customers to prevent fraud, money laundering, and other illegal activities. Banks may require proof of identity, address, and sometimes even the source of your funds.
Example: When opening a new bank account, you will likely need to submit your passport, voter ID, and utility bills to complete the KYC process.
What to consider: Completing the KYC process is crucial for accessing banking services like loans, credit cards, and online banking. Ensure that you provide accurate and up-to-date documents.

6. ATM (Automated Teller Machine)

Meaning: An ATM is an electronic machine that allows you to perform basic banking transactions, such as withdrawing cash, depositing money, and checking your account balance without visiting a bank branch.
Example: Using your ATM card, you can withdraw cash from any machine within your bank's network or a third-party machine (which may charge a fee).
What to consider: Be cautious when withdrawing money from ATMs located in remote or unfamiliar areas to avoid fraud or theft.

7. Interest Rate

Meaning: The interest rate is the percentage at which a bank charges for borrowing money (loan interest) or the percentage paid on deposits (savings or fixed deposits). It is usually expressed as an annual rate.
Example: If you have a savings account with an interest rate of 3% per year, you will earn 3% of your deposit as interest at the end of the year.
What to consider: A higher interest rate on loans can increase your repayment amount, while a higher rate on deposits can yield more returns.

8. Credit Score

Meaning: A credit score is a numerical representation of your creditworthiness, determined based on your credit history. It helps banks assess how risky it is to lend money to you.
Example: If you have a high credit score, banks are more likely to approve you for loans with favorable terms, such as low-interest rates.
What to consider: Maintaining a good credit score is essential for getting loans and credit cards at competitive rates.

9. Cheque Bounce

Meaning: A cheque bounce occurs when a cheque cannot be processed due to insufficient funds in the account or discrepancies with the details on the cheque.
Example: If you issue a cheque for NPR 50,000 but your account balance is only NPR 30,000, the cheque will bounce.
What to consider: Frequent cheque bounces can damage your relationship with the bank and affect your credibility in financial transactions.

10. Loan Tenure

Meaning: Loan tenure refers to the duration for which a loan is taken. It is the period during which you are required to repay the loan, and it can range from a few months to several years.
Example: If you take a personal loan with a tenure of 5 years, you must make monthly repayments over 60 months until the loan is fully repaid.
What to consider: A longer loan tenure means smaller monthly payments but may result in higher overall interest payments.

11. Bank Statement

Meaning: A bank statement is a detailed record of all transactions in your account over a specific period, typically a month, including deposits, withdrawals, fees, and interest earned.
Example: Your bank statement might show that you deposited NPR 10,000, made a payment of NPR 3,000, and earned NPR 150 as interest for the month.
What to consider: Regularly reviewing your bank statements helps in tracking your expenses and spotting any unauthorized transactions.

12. Fixed Deposit (FD)

Meaning: A fixed deposit is a type of investment where you deposit a lump sum amount with a bank for a fixed tenure at a predetermined interest rate. The funds cannot be withdrawn before the maturity date without penalties.
Example: You deposit NPR 1,00,000 in a fixed deposit for 1 year at an interest rate of 5%. At the end of the year, you receive the principal amount plus the interest earned.
What to consider: FDs are low-risk investments but offer limited liquidity, as your funds are locked in for the tenure.

13. Balance Transfer

Meaning: A balance transfer allows you to transfer the outstanding balance of one credit card or loan to another account, often to take advantage of lower interest rates or better repayment terms.
Example: You transfer the remaining balance of NPR 20,000 from your high-interest credit card to one with a lower interest rate for better repayment terms.
What to consider: Balance transfers often come with a fee, and missing payments can lead to increased debt.

14. Nominee

Meaning: A nominee is a person who is designated to receive the benefits of an account holder's funds in the event of their death.
Example: If you have a savings account and name your spouse as a nominee, your spouse will be able to access the funds if you pass away.
What to consider: Always review and update your nominee details to ensure that the right person inherits your funds.

15. Wire Transfer

Meaning: A wire transfer is an electronic transfer of funds between banks or financial institutions, often used for large, international, or urgent payments.
Example: You can use wire transfers to send NPR 100,000 to a family member abroad.
What to consider: Wire transfers can incur high fees, especially for international transactions, and they may take several business days to complete.

Conclusion: Building a Strong Foundation for Your Banking Journey

Familiarizing yourself with these banking terms is essential for understanding your financial transactions and making smarter decisions. From managing your loans and savings to understanding how banking systems work, knowing these terms will give you more control over your finances and help you avoid unnecessary fees or complications.

Comprehensive List of Banking and Financial Abbreviations

Here are some commonly used abbreviations in the banking and financial sectors:

ACH – Automated Clearing House
AML – Anti-Money Laundering
ATM – Automated Teller Machine
BCP – Business Continuity Plan
CD – Certificate of Deposit
CRR – Cash Reserve Ratio
CSR – Corporate Social Responsibility
DDA – Demand Deposit Account
EBITDA – Earnings Before Interest, Taxes, Depreciation, and Amortization
EFT – Electronic Funds Transfer
FDI – Foreign Direct Investment
FII – Foreign Institutional Investor
FRA – Forward Rate Agreement
FX – Foreign Exchange
GDP – Gross Domestic Product
IBAN – International Bank Account Number
IPO – Initial Public Offering
IRR – Internal Rate of Return
KYC – Know Your Customer
LIBOR – London Interbank Offered Rate
LTV – Loan-to-Value
M&A – Mergers and Acquisitions
MICR – Magnetic Ink Character Recognition
MFI – Microfinance Institution
MoU – Memorandum of Understanding
NAV – Net Asset Value
NPA – Non-Performing Asset
NEPSE – Nepal Stock Exchange
P/E Ratio – Price-to-Earnings Ratio
PEF – Private Equity Fund
PMI – Purchasing Managers’ Index
POA – Power of Attorney
PR – Public Relations
PSU – Public Sector Undertaking
PTA – Preferential Trade Agreement
QIB – Qualified Institutional Buyer
RBI – Reserve Bank of India
ROA – Return on Assets
ROE – Return on Equity
ROI – Return on Investment
SIP – Systematic Investment Plan
SWIFT – Society for Worldwide Interbank Financial Telecommunication
TDS – Tax Deducted at Source
UAN – Universal Account Number
VAT – Value Added Tax
VIR – Virtual Investment Return
WACC – Weighted Average Cost of Capital
WIBOR – Warsaw Interbank Offered Rate
ZBA – Zero Balance Account
AMEX – American Express
B2B – Business to Business
B2C – Business to Consumer
CFD – Contract for Difference
CMF – Credit Management Forum
CPI – Consumer Price Index
CRO – Chief Risk Officer
CVC – Cumulative Voting Capacity
DER – Debt-to-Equity Ratio
DPS – Dividend per Share
ECB – External Commercial Borrowings
EMI – Equated Monthly Installment
ETF – Exchange-Traded Fund
ETL – Extract, Transform, Load
FPI – Foreign Portfolio Investment
FRA – Forward Rate Agreement
FY – Financial Year
GDR – Global Depository Receipt
HNI – High Net-worth Individual
HR – Human Resources
ICICI – Industrial Credit and Investment Corporation of India
IFSC – Indian Financial System Code
IMF – International Monetary Fund
INR – Indian Rupee
IPO – Initial Public Offering
IRDAI – Insurance Regulatory and Development Authority of India
ITR – Income Tax Return
KRA – Key Result Area
KYC – Know Your Customer
LCO – Local Cable Operator
LLC – Limited Liability Company
LPG – Liquefied Petroleum Gas
MCA – Ministry of Corporate Affairs
MFI – Micro Finance Institution
MF – Mutual Fund
MNC – Multinational Corporation
NBFC – Non-Banking Financial Company
NIM – Net Interest Margin
NSE – National Stock Exchange
OPEC – Organization of the Petroleum Exporting Countries
P2P – Peer to Peer
P2P Lending – Peer to Peer Lending
PBT – Profit Before Tax
PBT – Profit Before Tax
PPP – Public-Private Partnership
PTM – Paytm
R&D – Research and Development
RPA – Robotic Process Automation
SaaS – Software as a Service
T+2 – Trade Settlement Period
VIX – Volatility Index

Understanding Banking in Nepal | Types of Banks in Nepal | Bank SMS Notifications & What They Mean | Bank Terms Used by Bankers | Short Forms & Their Full Forms in Banking & Finance