Types of Banks in Nepal
There are four types of Banks classes in Nepal based on A, B, C, and D. This includes Commerical, Development, Finance companies, and Microfinance companies. In this guide, we will be listing them along with their features as well.
A-Class banks in Nepal
The class “A” banks are categorized and rated as commercial banks by the Nepal Rastra Bank. Commercial banks are the type of bank that is based on providing financial services to the general public and companies. Commercial banks provide services like providing loans, accepting deposits, and many other banking facilities. Besides A class, Nepal rastra bank has divided banks into B, C, and D categories.
Currently, there are 21 commercial banks listed as A-Class banks in Nepal by the Nepal Rastra Bank. Let’s have a look at them.
B-Class Banks in Nepal
Class “B” banks are categorized and rated as development banks by the Nepal Rastra Bank. Development banks are one of the crucial financial institutions based on providing capital, loans and Besides B class, Nepal rastra bank has divided banks into A, C, and D categories.
Currently, there are 17 development banks listed as B-Class banks in Nepal by the Nepal Rastra Bank.
C-Class Banks in Nepal
The class “C” banks are categorized and rated as Finance companies by Nepal rastra bank. Finance companies are such financial institutions that provide loans and capital to individuals for small businesses and purchases. The main difference from banks is that these Finance companies do not accept and manage deposits through individuals. The finance company’s main functions are to provide secured and unsecured loans in order to meet any individual’s personal finance needs without any eligibility process.
Currently, there are 17 finance companies listed as C-Class banks in Nepal by the Nepal Rastra Bank.
D-class Banks in Nepal
Micro Finance companies are listed as class D banks in Nepal. These companies are based on Providing banking facilities for lower-income individuals and businesses. These organizations provide smaller loans and financial help in order to sufficiently help individuals grow their economy and succeed. The micro-finance company helps provide reasonable financial practice and is efficient to help people succeed financially. Currently, there are 61 microfinance companies in Nepal.
What are your thoughts on the list of Types of banks in Nepal?
These were the four types of banks in Nepal currently based on their classes and objectives. Check out our website for other Bank and finance updates.
