Internship Report On Machhapuchchhre Bank - Chapter Four 2023

In this chapter, we present a concise summary of the internship report focusing on the experiences and insights gained during the internship at Machhapuchchhre Bank Itahari Branch. Throughout the previous chapters, we explored the organizational structure, tasks, challenges, and key findings. In this summary, we highlight the most significant aspects of the internship, providing a comprehensive overview of the journey.

During the internship at Machhapuchchhre Bank Itahari Branch, I had the opportunity to immerse myself in the dynamic world of banking. This chapter offers a condensed review of the internship experience, encapsulating the knowledge and skills acquired during my time at the branch. It provides a glimpse into the practical application of theoretical concepts and sheds light on the day-to-day operations of the bank.

In this Internship Report ON Machhapuchchhre Bank - Chapter Four, we reflect on the tasks and responsibilities undertaken during the internship, ranging from customer service to project assignments. We discuss the challenges encountered and the strategies employed to overcome them, emphasizing the importance of adaptability and problem-solving skills in a fast-paced banking environment. Additionally, we present the key observations and findings made during the internship, offering valuable insights into the strengths and areas for improvement within the branch.

CHAPTER FOUR

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4. ANALYSIS OF ACTIVITIES DONE AND PROBLEMS SOLVED

The focus of this chapter is on the tasks and responsibilities carried out by the intern during the internship. The intern was assigned to the Customer Service Department in MBL Bank for a period of 8 weeks and was able to gain a comprehensive understanding of the department's major activities within a short period of time. The experience proved to be beneficial for the intern.

4.1 Introduction of the department (CSD) and activities

The customer service department acts as the primary point of contact for customers in the bank. It is where customers have their initial interactions with the bank. The main focus of this department is to provide basic assistance to customers by giving them information about the bank's systems, products and services. The customer service department's purview also includes other aspects of the customer experience, such as the way staff interact with customers, the ambiance of the waiting area, and the way in which customer complaints are handled.

Customer service refers to a company's ability to meet and exceed the needs and wants of their customers. It encompasses the various methods and processes used to provide efficient, cost-effective, and satisfactory access to a company's products or services. It is an ongoing process, rather than a singular set of actions such as greeting a customer with a smile. Customer service refers to the way in which a company delivers its products or services. Sales representatives play a crucial role in the customer service process by guiding customers through the process and helping them obtain the products they desire. To improve customer service, it's important to understand the needs and wants of customers and to implement processes that are customer friendly.

The banking industry is becoming more competitive, which means that banks and other financial institutions need to offer more services to meet the needs of their customers. This includes introducing new and innovative services like ASBA, ATMs, debit cards, internet banking, and lockers, as well as ensuring that customer service is efficient and effective. Customers want quick service and to be properly assisted when they interact with customer service representatives.

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4.1.1 Activities performed in CSD

 Dealing with customers:

The CSD is a location where customers can go to ask questions and receive satisfactory answers. During the internship, the following tasks were performed when dealing with customers: providing information about banking services, addressing and resolving customer complaints, helping customers open accounts with all the necessary information, and accepting orders for bank statements and checks.

Account opening:

Both individuals and corporate entities can open bank accounts. A bank account is essentially a unique computer-generated code that allows customers to deposit and withdraw funds. The process of opening an account is as follows:

·         The first step in opening a bank account is for the customer to visit the bank and fill out an account opening form and Signature Card, which includes their personal information. The customer is also required to submit a copy of their citizenship certificate, two passport-sized photos and any other required documents.

·         Once the form and documents are submitted, the CSD staff will verify the information and signatures provided and enter them into the GLOBUS system, along with the account type and the name of the introducer.

·         The system will then automatically generate an account number, which is a 16-digit code, with the first two digits representing the branch code.

·         The process begins with customers being asked to deposit the required minimum balance for their chosen type of deposit account. They are then given an account number.

·         Next, the CSD staff creates a customer ID for the account holders and sends it to the operation manager for verification. Once the customer ID is approved, it is sent back to the CSD for form scanning. Finally, the CSD staff will prepare an ATM card and cheque for the customer upon request.

Account closing:

An account is closed only when the account holder submits a written request to do so. The account holder must fill out a "Account Closing Request" form and submit it to the CSD. They must also return any unused ATM cards and cheques to the bank. The bank charges a fee for closing the account, and any remaining balance is returned to 

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the customer. The form is then verified and signed by the operation manager and branch manager, completing the account closure process.

Cheque issuance:

The process of printing and issuing cheques is a delicate task that is regularly carried out by CSD. Cheque books are printed daily in large quantities in this department. The procedure for printing and issuing cheques is as follows:

·         For new account holders, the bank provides the cheques at no cost.

·         Those who need to print cheques for the second time, must fill out a requisition slip that includes the date, number of required cheque leaves, and a valid signature or company stamp (in the case of a current account). In case the requisition slip is lost Rs 250 is charged.

·         After this, CSD staff will issue the cheques, and an operation manager will verify and authorize the printing of the cheques.

·         The final step is to record the issuance in the cheque registry and have it signed by the customer and operation manager.

ATM card handling:

The ATM card offered by Machhapuchchre Bank is a debit card that operates under the VISA network. The bank charges a fee for issuing the card, depending on the type of account held. For example, a normal saving account, Pewa Saving, or Yuwa Bachat account would be charged Rs.400 for an ATM card, while no fee is charged for a Smart account, Student account, MBL premium account, or salary account. The issued ATM card is valid for 5 years and customers can withdraw a maximum of Rs.100000 per day using the debit card.

Statement printing:

A Statement of Account is a document that provides a detailed record of all the transactions (such as withdrawals, deposits, debits, and credits) that have occurred in an account, as well as the closing balance of the account as of the day before the statement is printed. This statement can be requested by the account holder and a form should filled out mentioning the interval of dates of which statement is reuired. However, the account holder must be present in order to receive the statement. If the account holder is not present, the agent must have a written request for the statement, signed by the account holder.

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Balance enquiry handling:

During my internship, I observed that Machhapuchchre Bank takes great care in protecting the privacy of its customers' account information. They only disclose account balances to customers who have been properly identified, either by checking their photo or signature in the system. The bank tries to avoid giving out account information over the phone, and only does so for a select group of customers who have a long-standing and well-established relationship with the bank.

E-banking:

E-Banking is a service provided by the bank that enables customers to conduct online banking transactions at any time and from any location. To use this service, customers must submit an "Application for Internet Banking" form to the Customer Service Desk (CSD). Once the form is received, it is forwarded to the operations manager for processing. The following day, the customer will receive a user code and password, which they can use to access their account. With this information, customers have full control over their accounts and can perform various transactions such as checking their balance, reviewing transactions, sending and receiving messages, and obtaining bank statements.

MBL mobile money (M3):

MBL Mobile Money (M3) is a service that allows customers to check their account information and perform various banking transactions using their mobile phone. This includes tasks such as checking their balance, viewing transaction history, changing their PIN code, and more. The Machhapuchchre bank is responsible for collecting the necessary forms from interested customers and forwarding them to the appropriate department. Additionally, the bank charges an annual fee of Rs 350 for M3.

Customer query handling:

During my internship as a CSD staff, I spent most of my time assisting walk-in customers with their inquiries. I provided them with the information they requested, including details about specific products and services. Additionally, I also responded to questions about other products, services, and transaction hours. I was also responsible for handling customer inquiries over the phone.

Balance certificate printing and issuance:

A Balance Certificate is a document issued by a bank that confirms the amount of funds that an account holder has in their account with the bank. It also usually 

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includes a statement from the bank indicating that the account holder has maintained a satisfactory level of transactions with the bank, but this is only included for customers who have a good standing with the bank. The balance amount on the certificate can be in either Nepalese Rupees (NPR) or in the customer's preferred foreign currency (FCY) at the exchange rate on the date of the certificate. Customers often visit the bank to request a Balance Certificate, particularly students going abroad for studies. To obtain a certificate, the customer must have an account with the bank and fill out a "Request for Balance Certificate" form. The CSD staff will then issue the certificate in the requested currency after obtaining the customer's signatures in the proper register. A service charge of Rs. 500 is typically required.

FD A/c opening:

An FD, or fixed deposit account, can be opened at Machhapuchchhre bank with a minimum deposit of Rs. 50,000. The interest earned on the account is calculated on a daily basis, but it is posted to the account on a quarterly basis. To receive the interest earned, the account holder must also open a normal savings account with the bank, and the interest from the fixed deposit account is transferred to that account.

FD renewal/settlement:

When an FD account is opened, it is important to keep track of the expiration date. Once the FD reaches its maturity, it can be handled in three ways: it can be renewed for another term at the current interest rate, the account holder can withdraw the funds, or the funds can be transferred to another account where the interest has been accumulated. Before the expiration date, bank staff should contact the account holder to discuss their preferences and take the necessary action.

KYC update:

KYC, or "Know Your Customer," is a process used by banks to verify the identity of their customers. It involves making an effort to determine the true identity and beneficial ownership of accounts, the source of funds, and the nature of the customer's business. This helps banks to manage their risks properly. The main objective of KYC guidelines is to prevent banks from being used for money laundering, intentionally or unintentionally. KYC has two components: Identity and Address. While the identity of the customer remains the same, their address may change, and so banks are required to periodically update their records. This is a recent activity that is carried out in all commercial banks as instructed by Nepal Rastra Bank. The intern at Machhapuchchhre Bank Limited, Itahari Branch, helped customers to fill out KYC 

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forms and informed customers who visit the bank and those who don't visit often through telephone calls.

4.2 Role of the intern in the organization

Working in customer service generally includes responsibilities such as answering phone calls and emails, addressing customer inquiries and complaints, and assisting customers with basic troubleshooting or setup processes. As an intern at Machhapuchchhre Bank Limited (MBL), the intern was treated as an employee of the bank by customers and the organization. Therefore, the intern was responsible for fulfilling these customer service responsibilities and completing tasks as assigned. It was a valuable internship opportunity as it provided the intern with the chance to learn and gain knowledge from different departments, as customers often communicate with the CSD before interacting with other departments. The intern's roles and responsibilities at MBL included:

·         Understanding the needs of customers and determining the purpose of their visit

·         Offering suggestions about the appropriate deposit products for the customer

·         Advising customers about the various services provided by the bank and promoting the utility of those services.

·         Opening accounts for individuals and corporate firms Closing accounts at the request of customers

·         Issuing account statements and check books as requested by customers

·         Distributing ATM cards

·         Updating KYC information for existing accounts

·         Opening demat accounts and assisting with share applications.

4.3 Experiences in the internship including understanding of system, processes and rationale

Participating in new activities often results in gaining new experiences, which can be divided into two types. One type is positive or good experiences, which meet expectations and achieve objectives. The other type is negative or bad experiences, which do not meet expectations or fail to achieve objectives.

During the internship at MBL bank, the intern encountered both positive and negative experiences while completing tasks. Some of these experiences include:

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·         In the initial days of the internship, the intern faced challenges in interacting with customers. To overcome this, the intern had to speak politely and patiently.

·         In initial phase, intern made some minor mistakes like; flowed incomplete information to customers, accepted incomplete documents of customers, missed customer’s signatures on forms, registers etc. so, intern should started to work very carefully and minimized those errors.

·         The bank received customers from diverse backgrounds and cultures, and the intern faced difficulties in understanding their language at times. To handle this, the intern had to listen carefully and ask the customers more often.

·         Many customers came to the bank with incomplete documents while trying to open a new account. The intern solved this problem by calling the customers to submit the missing documents as soon as possible.

·         The bank follows the rules and regulations set by Nepal Rastra Bank (NRB). Changes made by NRB should be accepted and followed by the bank, but customers may not always accept the changes. The intern had to explain the rules and regulations set by NRB to the customers in order to solve this problem.

·         During the absence of employees in the CSD department, the intern took on some of their responsibilities to ensure timely operations within the department.

·         The intern assisted employees with opening new accounts for customers during busy times when they were unable to handle the crowd.

·         Some customers were unable to read and write, so the intern helped them by filling out the account opening application forms and providing information.

·         Some customers became angry when issues occurred with the ATM machines, mobile Banking. The intern had to handle these situations calmly and politely.

Despite any challenges faced while interning at a reputed bank like MBL, the intern had a valuable experience and was able to partially achieve the objectives of the internship. This experience will serve as a foundation for the intern's career. The internship provided the intern with the opportunity to develop their personality, skills, and knowledge.

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4.4 Emergence / Occurrence of Issues, Problem or Challenges and how these problems were solved / addressed

Currently, the banking industry and other institutions are highly competitive, with each organization striving to be the best in the market. As an intern, it can be difficult to start a new task in such a competitive environment. The initial challenge for the intern was finding a bank for the internship. In performing day-to-day activities within the organization, one must deal with various problems and challenges. Effective and efficient problem-solving skills are necessary to handle these issues. After joining Machhapuchchhre Bank Limited (MBL) for the internship, Here are some problems and difficulties that exist in the CSD of the bank:

·         The Customer Service Department (CSD) has a variety of tasks to complete. Every customer who visits the CSD expects the employees to resolve their problems immediately. However, with only one staff member working in the CSD, it was difficult to solve customers' problems immediately as the next staff member was on leave.

·         There were frequent technical issues with the ATM machines, resulting in multiple customer complaints.

·         Pending files and documents were often disorganized, particularly in busy situations.

·         The Itahari branch had only one photocopying machine, which resulted in long wait times of 10-15 minutes. The machine was also not in good working condition.

·         Tasks related to shares and demat were also performed in the CSD which delayed other tasks that needed to be completed. It would be more efficient if these tasks were removed from the CSD.

·         Computer performance was slow and system lagged which caused delays in the work.

·         Having single and same machine to print cheques and statement delayed the work.

As an intern, there are certain aspects of the bank that cannot be fully explored due to the oath of secrecy and confidentiality. The intern was given the opportunity to work in the CSD (Customer Service Department) of the bank. The intern attempted to solve basic problems of customers and other tasks when other staff members were busy as follows:

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·         Responding to customer inquiries.

·         Providing information about available services and updating customers on changes in rules for their convenience.

·         Resolving issues related to the services provided and mistakes made by customers themselves.

·         Updating the system regularly with new software to fix errors.

·         Addressing problems related to maintaining services, so that customers receive timely notifications about deposits.

·         Handling problems encountered by customers.

 

4.5 Observed Gaps

Through the internship, intern observed various gaps. Some of them are as follows:

·         The knowledge acquired from academic courses appeared to be vastly different in practice. Despite the significant disparity between theory and practice, the underlying concepts of the theory are still essential in the workplace.

·         Theoretical knowledge serves as the foundation for performing any task in a working environment. Socio-cultural factors and interpersonal relationships may seem straightforward in theory, but in practice, maintaining these relationships and interacting with society can be a challenging task. Effectively dealing with different types of customers can be honed through hands-on experience.

·         In-depth knowledge from books about customer relationships may not be as effective as practical experience.

·         When an intern learns something from a book, they develop a mental image of what it should be like. However, after completing the internship, the intern realizes that the information in textbooks and the actual reality are vastly different. This is because the information in textbooks is not updated regularly, whereas in the real world, one must stay updated in order to be competitive and successful.