Study notes
Short, sourced notes on the topics every bank exam asks about, each with a quiz to check what stuck.
Banking
5 notesBanking System and Financial Institutions of NepalHow banking grew in Nepal from Nepal Bank Limited (1994 BS) to today's licensed system, and how the BAFIA 2073 sorts institutions into classes A, B, C and D under Nepal Rastra Bank.4 min read4 min readFunctions and Services of Commercial BanksWhat a class A bank does: deposits, loans and advances, agency and utility services, non-fund-based business such as guarantees and letters of credit, and the legal relationship with customers.3 min read3 min readNepal Rastra Bank and Monetary PolicyThe objectives, functions and governance of Nepal Rastra Bank under the NRB Act, 2058, and how CRR, SLR, bank rate, policy rate, the interest rate corridor and open market operations work.4 min read4 min readPayment and Settlement SystemsHow money moves between banks in Nepal: cheque clearing through NCHL-ECC, NCHL-IPS and connectIPS, the RTGS run by Nepal Rastra Bank, cards, QR payments and SWIFT.3 min read3 min readKYC, AML and Banking RiskCustomer due diligence and reporting duties under the Assets (Money) Laundering Prevention Act, 2064, the role of FIU-Nepal, the main banking risks and the capital ratios of NRB's Capital Adequacy Framework 2015.4 min read4 min read
Banking Laws
5 notesNepal Rastra Bank Act, 2058: the central bank's charterObjectives, functions, Board and Governor, currency issue, government relations and regulatory powers of NRB under the NRB Act, 2058 as amended up to 2081.4 min read4 min readBanks and Financial Institutions Act, 2073 (BAFIA)How banks and financial institutions are incorporated, licensed, classified, governed, capitalised, merged and disciplined under BAFIA, 2073 as amended up to 2081.4 min read4 min readNegotiable Instruments Act, 2034: notes, bills and chequesDefinitions, parties, endorsement, crossing, presentment, dishonour and liability under the Negotiable Instruments Act, 2034, including the 2082 repeal of its cheque dishonour penalty.4 min read4 min readBanking Offence and Punishment Act, 2064What counts as a banking offence, who can commit it, how cases are investigated and filed, and how punishment rises with the amount involved, as amended up to 2082.4 min read4 min readAsset (Money) Laundering Prevention Act, 2064Offences of money laundering and terrorist financing, duties of reporting entities, the Financial Information Unit, record keeping and penalties, as amended up to the Third Amendment of 2083.4 min read4 min read
Accounting
5 notesAccounting Concepts and the Accounting EquationMeaning, objectives and users of accounting, the main concepts and conventions, and how every transaction keeps Assets = Liabilities + Capital in balance.4 min read4 min readJournal, Ledger and Trial BalanceRules of debit and credit, books of original entry, posting and balancing, what a trial balance can and cannot detect, and how the suspense account works.4 min read4 min readBank Reconciliation Statement (BRS)Why the cash book and pass book balances differ, the add and deduct rules from either balance, overdraft cases and worked numerical examples.4 min read4 min readFinal Accounts and DepreciationTrading account, profit and loss account and balance sheet, the usual year-end adjustments, capital versus revenue items, and straight-line and diminishing-balance depreciation.4 min read4 min readFinancial Statements of Banks and Ratio AnalysisThe NFRS-based statements NRB prescribes for banks, how a bank's profit is built up, and the formulas for CAR, NPL, CD, liquidity, ROA, ROE, EPS and NIM.4 min read4 min read
Economics
5 notesDemand, Supply and ElasticityHow the laws of demand and supply set the market price, what shifts each curve, and how price, income and cross elasticity are calculated and interpreted.4 min read4 min readNational Income and Economic GrowthGDP, GNI and related aggregates, the three ways of measuring national income, nominal versus real values, and how growth differs from development and the HDI.4 min read4 min readMoney, Inflation and Interest RatesFunctions and kinds of money, Nepal's M1 and M2 money supply measures, types and causes of inflation, the CPI, and the link between nominal and real interest rates.3 min read3 min readPublic Finance and the Budget of NepalRevenue, expenditure, taxes, deficits and debt, plus the constitutional rules for Nepal's federal budget (Jestha 15) and revenue sharing among the three levels of government.3 min read3 min readInternational Trade, Balance of Payments and Exchange RateWhy countries trade, how tariffs and quotas work, how the balance of payments is organised, and how Nepal's rupee peg with the Indian rupee and WTO membership fit in.4 min read4 min read
Management
5 notesPrinciples and Functions of ManagementLevels and functions of management, Fayol's 14 principles, Taylor's scientific management, types of plans and the basics of managerial decision making.4 min read4 min readOrganisation, Authority and DelegationOrganisation structures, span of control and Graicunas's formula, authority, responsibility and accountability, delegation versus decentralisation, and bases of departmentation.4 min read4 min readMotivation and LeadershipThe main motivation theories (Maslow, Herzberg, McGregor, Vroom) with authors and years, and leadership styles, trait and situational approaches and the managerial grid.4 min read4 min readHuman Resource ManagementJob analysis and its two outputs, recruitment and selection, training and its evaluation, performance appraisal methods and errors, compensation and grievance handling.4 min read4 min readCommunication and Customer Service in BanksThe communication process, channels and barriers, office correspondence and records, service quality (SERVQUAL), complaint handling, relationship marketing and the 7Ps of bank marketing.4 min read4 min read
Quantitative Aptitude
5 notesPercentage, Profit and Loss: Formulas and Worked ExamplesPercentage change, successive changes, cost and selling price, marked price, discount and VAT, with the formulas and worked examples needed for bank pre-tests.3 min read3 min readSimple and Compound Interest: Formulas and Worked ExamplesSimple interest, annual and half-yearly compound interest, the CI and SI difference for two and three years, effective rate and equal instalments.3 min read3 min readRatio, Proportion and Average: Formulas and Worked ExamplesRatios and compound ratios, direct and inverse proportion, partnership, mixtures and alligation, and simple and weighted averages with worked examples.3 min read3 min readTime, Work, Speed and Distance: Formulas and Worked ExamplesCombined work, pipes and cisterns, wages, average and relative speed, trains, and boats and streams, with the rate method and worked examples.3 min read3 min readBasic Statistics and Number Series: Methods and Worked ExamplesMean, median, mode and range for ungrouped data, simple probability with dice and balls, and the common patterns in number-series and analogy questions.3 min read3 min read
Computer and IT
5 notesComputer Fundamentals and HardwareGenerations and types of computers, the CPU, the memory hierarchy and units, common input, output and storage devices, and number system conversions with worked examples.4 min read4 min readOperating Systems and Office SoftwareFunctions and types of operating systems, files and folders, and the durable features and shortcuts of word processors, spreadsheets and presentation software.4 min read4 min readNetworking and the InternetNetwork types and topologies, network devices, IP addressing and DNS, the protocols and port numbers examiners ask about, email, the web and cloud computing basics.4 min read4 min readCyber Security and the Electronic Transactions Act, 2063Malware, phishing, authentication, encryption, digital signatures and backups, with the main sections, offences and penalties of Nepal's Electronic Transactions Act, 2063.4 min read4 min readInformation Technology in BankingCore banking, ATMs and cards, mobile and internet banking, two-factor authentication, SWIFT, database basics, and how Nepal Rastra Bank guides IT risk management in banks.4 min read4 min read
General Knowledge
5 notesConstitution of Nepal (2072): structure, rights and organs of the StateHeadline structure of the 2072 Constitution: parts, articles and schedules, rights and duties, the three tiers and their power lists, Parliament, executive, courts and constitutional bodies.4 min read4 min readGeography of Nepal: location, regions, rivers, peaks and protected areasLocation and area, the three ecological belts, provinces and districts, river systems, peaks, lakes, protected areas and climate of Nepal, with the figures examiners ask most.3 min read3 min readHistory of Nepal: from unification to the federal republicA dated outline of modern Nepali history: unification, the Sugauli Treaty, 104 years of Rana rule, the 2007 revolution, Panchayat, the 2046 and 2062/63 movements and the republic.4 min read4 min readInternational and regional organisations and Nepal's membershipFounding years, headquarters, membership and Nepal's joining dates for the UN, IMF, World Bank Group, ADB, WTO, SAARC, BIMSTEC and AIIB.3 min read3 min readEconomy and development planning of NepalPeriodic plans from 2013 BS to the Sixteenth Plan, the National Planning Commission, LDC graduation, federal fiscal arrangements and landmark firsts in banking and public finance.4 min read4 min read