DEPOSITS
Deposits accepted by the bank from public and its customers are of following types:

Demand Deposits
- Current Accounts
- Interest Bearing Current Account

Time Deposits
Saving Account
Daily Interest Saving Account
Fixed Deposits

Accepting of deposits is governed by the laws of the country and is subject to rules and regulations of the central bank of the country.

Note: A minor cannot open account. However, saving accounts can be opened on behalf of minors. Also insane or legally incapacitated persons cannot open account.

Interest Bearing Current Account (Demand Deposits)
A current account is a running account between a banker and customer in which the customer can deposit money into or withdraw money at any time whenever he likes.

Salient Features

• Quantum Withdrawal : There are no restrictions on the quantum of funds withdrawn by the account holder at any one time. To withdraw more than one million at one time should be prior noticed.
  
• Number of Transactions : There is no restriction on the number of transactions in the account during any period of time.
  
• Interest : Interest is payable on this deposit.
  
• Overdrawn Facility : Account can be overdrawn by special arrangement with the bank. But, cheque drawn without such special arrangements are not only dishonored but also the bank reserves to itself the right of closing such accounts without notice to the customer or bank may charge penalty for every dishonor of cheque drawn against insufficient balance.
  
• Cheque Collection : The account holder is allowed the facility of sending cheque and note(instruments) for collection including third party cheque. A third party cheque is one, which the customer does not indicate the payee.
  
• Current account can be opened in the names of individuals, associations of persons, corporate bodies, trust societies etc. i.e. for all kinds of customers.

Daily Interest Saving Account
Savings account is mainly meant for individuals who want to have savings for some interest return and availing banking facilities instead of putting it into the house with risk and no gain at all.. Beside personal, saving deposits are made by non-profit making institution which would like some extra resources for religious, philanthropic, charitable, educational purposes: such as schools, clubs, hotels, religious and charitable institutions.

Features

• Withdraw Amount : Restrictions on the amount of funds that can be withdrawn by the account holder at any point of time. Bank requires the depositors to give notice of a specified period for withdrawal of the amount for more than one million.
  
• Withdrawal frequency : Bank may place restrictions on the number of withdrawals from the account during a stated period of time.
  
• Interest : Banks do pay some interest to those accounts but the interest payment method may vary bank to bank. Some banks pay on daily average balance and some on monthly minimum balance. If a bank chooses the latter one, then the customer will be provided interest to its monthly minimum balance only, not on all deposits he has made to his account. Interest is generally paid on half yearly basis.
  
• Account Operation : Generally, the account is operated through cheque book issued to saving account setting a minimum balance amount.

Fixed Deposits
As its name suggests, it is the kind of deposit, which is made for a fixed period of time varying up to 5 years. Fixed deposits or time deposit are accepted by banks at a fixed rate of interest agreed upon depending upon the period for which they are accepted. Fixed deposit receipts are issued for the deposits accepted by the banks. The receipt is not transferable by endorsement and delivery.

Fixed deposits received for a period less than 12 months are called short-term deposits. These deposits are payable subject to a period of notice and not at demand. Minimum amount for which the fixed deposits are accepted varies from bank to bank.

•  Bank allows higher rate of interest
•  Interest is payable at periodic intervals to the depositors or as per their instructions.

• Any authority to open and operate on an account should be given by the customer on the Bank's printed Mandate / Application forms.

Types of Bank Deposits Accounts
Types of deposits that can be opened in the Bank by Persons or Business Entities with proper legal capacity to enter into contract can be described as follows:

• Individual Accounts Account opened, operated and maintained by a single person.
  
• Joint Accounts Account opened, operated and maintained by two or more persons.
  
• Partnership Accounts Account opened operated and maintained by a legal establishment under a partnership agreement. All the partners mentioned in the Business Registration must sign in the mandate. If some partners are minors, it will be in order for the bank to open an account on a mandate signed by the parties who are full of age.
  
• Sole Proprietary Accounts Account opened, operated and maintained in the name of business by the Sole proprietor.
  
• Company Accounts Account opened, operated and maintained by a limited liability (Private or Public) Company.
  
• Government, Corporations Accounts, Societies, Clubs, Associations and Trade Unions Accounts Account opened, operated and maintained by properly constituted Govt. Bodies- Corporations and Associations.
  Authority to open, operate should be in conformity with the provisions of the constitution.

•  Opening Current Accounts:
Receive Mandate/Application to open Current Account and specimen signature card duly signed in the presence of bank staff.

Note: For the illiterate persons, Thumb Stamp / Photograph is necessary.

Eligible to open : Individual, Firm / Company (Private & Public Limited), Partnership Firm

Scrutinize:

Opening Savings Account:
Receive Mandate / Application to open Savings Account and specimen signature card duly signed in the presence of bank staff.

Eligible to open: Individual, Non-Profit making organization like Trusts, Associations, Co-operatives etc.

Scrutinize:

Opening Fixed Deposit Account :
Eligible to open : Individual and all organizations eligible to open Saving and Current Accounts.

Scrutinize:

•  Mandate / Application to open Account
•  Confirm the period, Maturity date, Rate of interest applicable
•  Nominee Form
•  Interest payment transferring instructions
•  Supporting Documents requested in the Mandate (Same as discussed above)
•  Accept the deposit
•  Issue the Receipts

Opening Interest bearing Current Account:
Usually opened by organization like financial institutions who have large deposits and it is mutually agreed by the Bank that they shall be paid a certain rate of interest if deposits are maintained up to a certain level.

•  Personal Foreign Currency Accounts*:(applicable after NRB approval)

Eligible Account Holders
All following Nepalese citizen and persons residing in Nepal, Persons residing outside Nepal or Nepalese social organizations or foreign nationals and institutions:

• Salary / Pensions earners in foreign exchange by virtue of their employment in international agencies, embassies and missions.
  
• Persons earning foreign exchange by way of employment service, training, seminar, study and business in foreign countries.
  
• All companies, firms or organized agencies registered in Nepal earning foreign exchange by providing services in foreign countries.
  
• Representatives of foreign companies drawing their emoluments and commission in foreign currency.
  
• Representatives of international agencies and press drawing the emoluments in foreign currency
  
• Foreign exchange earned by way of royalty, prize and write ups.
  
• Institutions / persons earning foreign exchange by providing consultancy
  
• Foreign nationals, institutions and NGOs receiving grant in foreign currency

Types of Accounts Permitted and Minimum Amount Required for Opening A/cs

•  Current - US $ 500 or equivalent
•  Savings Bank - To be determined by Bank
•  Call Deposits - To be determined by Bank
•  Fixed deposits - US $ 3000 or equivalent

Eligible Currency Designated Accounts
US Dollars, Sterling Pound, Japanese Yen, Deutsche Mark, Swiss Frank, Australian Dollar, Canadian Dollar, Netherlands Gilder, Singapore Dollar, French Mark, Euro.

Certificate of Earnings
For all eligible persons, foreign currency account may be opened on production of earning certificates.

Opening of such account in joint name of spouse is permissible.

Procedure for Depositing
The minimum amount for opening the account and subsequent deposits shall be in form of cash, bank draft, travelers cheque, telex/telegraphic mail transfers or money orders or cheques drawn on banks outside Nepal. All these cheque/ draft should be in the name of the account holder only. Endorsed Instrument is not eligible.

Operation of Account
Not permissible by any one other than the account holder.