Evolution of Banking

But the history, we can find out that our country has been involved in business and trade since a long time back. Around the 12^th century silver coins that were called "dam". Later in Jayasthiti Malla divided the people into 64 sub castes as per their occupation, amongst which "tankadhari" is the one. They dealt with lending money to the public in the 19^th century i.e. on 1993 B.S. The then prime minister Ranodip Singh established the government financial institutions, which provides credit loan to general public at 5%interest on securities, i.e. gold, silver, etc.
It didn’t collect deposit from the public. Nepal bank, a modern established in cooperation with bank of India with an authorized capital of Rs.10 million. After the establishment of Nepal Bank Limited, central bank i.e. Nepal Rastra Bank which was established in 2013 B.S. under Nepal Rastra Bank Act 2012 B.S. to discharge the central banking responsibility. After a short period of time HMG established another commercial bank, Nepal Banijya Bank in 23^rd January 1996 A.D. to enhance economy. Agriculture Development Bank was established with the objectives of helping the industries in private sectors. Rastriya Banijya Bank, an another commercial bank was established in 2022 B.S. only country 2041 B.S. Government of Nepal (GoN) allowed Joint Venture banks to operate in Nepal.

For example in our country, the commercial bank under joint venture agreement like Standard Chartered Bank, NABIL Bank, Nepal Investment Bank, Himalayan Bank, Everest Bank, etc. have already maintained their competitive position compare to the emerging commercial banks like Lumbini Bank, Machhapuchhre Bank, Kumari Bank, Nepal Industrial and Commercial Bank, Siddhartha Bank, Global Bank. The worst headed bank at present is Nepal Bangladesh Bank and Nepal Credit and Commerce Bank.