Note on Types of Development Bank

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In Nepal, development banks are established under the provision of Development Bank Act, 2052. Nepal Industrial Development Corporation (NIDC), Agriculture Development Bank Ltd., Rural Development Bank and a number of private development banks have already been established as development banks in Nepal under this Act.

Agriculture Development Bank
Agriculture Development Bank

Agriculture Development Bank Ltd.

The bank, which is established to develop the agricultural sector of the country, is called Agriculture Development Bank (ADB). It is established with the objective of providing institutional credit and enhancing the production and productivity of the agricultural sector in the country. This helps to improve the living standard of the farmers. Small farmers can have easy access for bank loans to finance their small projects with the help of agriculture development bank. It also provides financial assistance for short-term and mid-term.

At present, Agriculture Development Bank performs banking functions as well. It was converted into the commercial bank from development bank since 2062/12/02. It accepts deposits from individuals and organizations, grants loans to business houses. It act as the agency functions on behalf of them.

Nepal Industrial and Development Corporation (NIDC)
Nepal Industrial Development Corporation (NIDC)

Industrial Development Bank

Industrial development bank is the bank that provides financial and technical assistance for the promotion and development of the industrial sector of the country. To develop the industrial sector of the country, the industrial development bank was established. It is established with the objective of ensuring industrial credit to industrialist for the overall development of the industrial sector.

In Nepal, Nepal Industrial Development Corporation (NIDC) was established in 2016 B.S. under NIDC Act, 2016 as the industrial development bank. It has got authorized capital of Rs. 250 millions.

Rural Development Bank
Rural Development Bank

Rural Development Bank

The bank which is established to help the people of rural areas to generate income by providing micro credit services under group guarantee without collateral is known as a rural development bank. These bank provides financial assistance as well as organizes different types of training programs for carrying out different types of jobs. The main objectives of establishing rural development bank are to provide micro-credit to the poor, encourage the poor to save, empower women and develop their leadership skills and create ample opportunities for self-employment. It was established through a joint collaboration of the government, Nepal Rastra Bank, and Commercial Banks.

In Nepal, such banks are established under the provision of Banks and Financial Institutions Act, 2004. Rural development bank has already been established in each development region of the country. It accepts deposits as group saving as well as personal saving. It has got authorized capital of Rs. 300 millions.

List of Rural Development Banks in Nepal

Name of Bank

Date of Establishment

Eastern Region Rural Development Bank, Biratnagar

2049/11/17

Far-Western Region Rural Development Bank, Dhangadhi

2049/11/17

Western Region Rural Development Bank, Butwal

2051/12/18

Mid-Western Region Rural Development Bank, Nepalgunj

2051/12/18

Central Region Rural Development Bank, Janakpur

2053/03/24

Gurkha Development Bank
Gurkha Development Bank

Private Development Bank

Private development banks are incorporated as public limited companies and operated under the Development Bank Act, 2052. The private development banks mobilizes more financial resources and provide technology know-how needed for the establishment and expansion for private enterprises. These banks help in the increment of capacity and productivity of these private enterprises. They are allowed to collect deposits as per the instruction issued by Nepal Rastriya Bank. These banks grant loans to the individuals as well as corporations in the private sector against the security place.

The private development bank mobilizes their resources for the promotion and development of industrial, agricultural and tourism areas. In Nepal, 33 private development banks have already been established.

  • The bank, which is established to develop the agricultural sector of the country, is called Agriculture Development Bank (ADB).
  • Agriculture Development Bank is established with the objective of granting agriculture credit to farmers and cooperatives for the overall development of agricultural sector.
  • In Nepal, Nepal Industrial and Development Corporation (NIDC) was established in 2016 B.S. under NIDC Act, 2016 as an industrial development bank. 
  • The bank which is established to provide micro-credit services to the people of rural areas under group guarantee without collateral for the purpose of helping them to generate income is known as a rural development bank.
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Very Short Questions

The bank which facilitates the economic sectors such as industrial, agricultural, rural, etc. by providing capital and technical assistance for their development is known as a development bank. They mainly fulfil financial, administrative and technical requirement for the development of infrastructure facilities like transportation, electricity, communication, health, education, agriculture, industry, and mining in the country.

The bank, which is established to develop the agricultural sector of the country, is called Agriculture Development Bank (ADB). It is established with the objective of granting agriculture credit to farmers and cooperatives for the overall development of agricultural sector. Such credit helps to improve the living standard of the farmers. With the establishment of the bank, small farmers also have easy access for bank loans to finance their small projects. It also provides financial assistance for short-term and mid-term.

At present, Agriculture Development Bank performs banking functions as well. It is converted into the commercial bank from development bank since 2062/12/02. It accepts deposits from individuals and organizations, grants loans to business houses and performs agency functions on behalf of them.

The bank which facilitates the economic sectors such as industrial, agricultural, rural, etc. by providing capital and technical assistance for their development is known as a development bank. They mainly fulfil financial, administrative and technical requirement for the development of infrastructure facilities like transportation, electricity, communication, health, education, agriculture, industry, and mining in the country.

In the absence of development of the industrial sector, the development of the country is impossible. So, to develop the industrial sector of the country, a bank has been established which is known as an industrial development bank. It is the bank, which provides financial and technical assistance for the promotion and development of the industrial sector of the country. It is established with the objective of ensuring industrial credit to industrialist for the overall development of the industrial sector.

In Nepal, Nepal Industrial and Development Corporation (NIDC) was established in 2016 B.S. under NIDC Act, 2016 as the industrial development bank. It has got authorized capital of Rs. 250 million.

The bank which facilitates the economic sectors such as industrial, agricultural, rural, etc. by providing capital and technical assistance for their development is known as a development bank. They mainly fulfil financial, administrative and technical requirement for the development of infrastructure facilities like transportation, electricity, communication, health, education, agriculture, industry, and mining in the country.

The bank which is established to provide microcredit services to the people of rural areas under group guarantee without collateral for the purpose of helping them to generate income is known as a rural development bank. The bank helps the people of rural areas by providing financial assistance as well as organizing different types of training programs for carrying out different types of jobs. The main objectives of establishing rural development bank are to provide micro-credit to the poor, encourage the poor to save, empower women and develop their leadership skills and create ample opportunities for self-employment. It was established through a joint collaboration of the government, Nepal Rastra Bank, and Commercial Banks.

In Nepal, such banks are established under the provision of Banks and Financial Institutions Act, 2004. Rural development bank has already been established in each development region of the country. It accepts deposits as group saving as well as personal saving. It has got authorized capital of Rs. 300 millions.

The bank which facilitates the economic sectors such as industrial, agricultural, rural, etc. by providing capital and technical assistance for their development is known as a development bank. They mainly fulfil financial, administrative and technical requirement for the development of infrastructure facilities like transportation, electricity, communication, health, education, agriculture, industry, and mining in the country.

Private development banks are incorporated as public limited companies and operated under the Development Bank Act, 2052. The major objectives of establishing private development banks are to mobilize more financial resources and provide technology know-how needed for the establishment and expansion for private enterprises. These banks help in the increment of capacity and productivity of these private enterprises. They are allowed to collect deposits as per the instruction issued by Nepal Rastriya Bank. These banks grant loans to the individuals as well as corporations in the private sector against the security place.

The private development bank mobilizes their resources for the promotion and development of industrial, agricultural and tourism areas. In Nepal, 33 private development banks have already been established.

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  • What is the full form of NIDC?

    National Industrial Development Co-operatives
    Nepal Ice-cream Delication Corporation
    Nepal Investment Development Corporation
    Nepal Industrial Development Corporation
  • The bank, which is established to develop the agricultural sector of the country, is called ______.

    industrial development bank
    private farm development bank
    rural development bank
    agriculture development bank
  • What is the full form of ADB?

    Account Details Book


    Agriculture Development Bank


    Agriculture Donors Bank


    Aviation Development Bank


  • The bank, which provides financial and technical assistance for the promotion and development of the industrial sector of the country is known as ______.

    rural development bank


    agriculture development bank


    private development bank


    industrial development bank


  • The bank which is established to provide microcredit services to the people of rural areas under group guarantee without collateral for the purpose of helping them to generate income is known as ______.

    rural development bank
    agriculture development bank
    industrial development bank
    private development bank
  • Rural development bank has got authorized capital of ______.

    Rs. 1000 millions
    Rs. 3000 millions
    Rs. 300 millions
    Rs. 800 millions
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