Classification of banks Classification of banks
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Classification of banks

Classification of banks

Classification of banks

1. Central bank

There is one central bank in each country. The name of the central bank of Nepal I’d Nepal Rastra bank which was established on 14th Baisakh, 2013 B.S.

2. Commercial bank

A commercial bank is established to earn a profit. The oldest commercial bank of Nepal is Nepal bank limited. There are altogether 20 commercial banks in Nepal.

3. Development banks

Development banks mostly invest in long term development activities. There are 17 development Bank in Nepal.

4. Saving bank

Saving banks are established to facilitate deposit in remote areas.

5. Exchange bank

Exchange bank is established to operate a foreign exchange in the country. There is no such bank in Nepal.

6. Rural Development Bank
Rural development banks are established in order to uplift the living standard of poor people who are engaged in agriculture. This bank provides a loan at a very low rate of interest.

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