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c. Rural Development Bank
Banks which are established to promote the
rural people for generating income in rural areas
by providing training and loan on the guarantee
of group is known as Rural Development Bank. In
Nepal, such banks are established under the provision
of Development Bank Act 2052 B.S. This bank has
already been established and functioning in the
eastern, western, far-western and mid-western regions
of Nepal. Bangladesh generated the concept of Rural Rural Development Bank
Development Bank at first.

List of Rural Development Banks in Nepal
S.N. Name of Bank Location Date of Establishment
1. Easter Region Rural Development Bank Biratnagar 2049/11/17
2. Far-Western Region Rural Development Bank Dhangadi 2049/11/15
3. Western Region Rural Development Bank Butwal 2051/12/18
4. Mid-western Region Rural Development Bank Nepalgunj 2051/12/18
5. Central Region Rural Development Bank Janakpur 2053/03/24

d. Private Development Bank
Banks which are established to develop special
sector of the country with the investment and
management of private sector are known as Private
Development Banks. The private development bank
mobilize their resources for the promotion and
development of industrial, agricultural and tourism
areas. Kailash Bikas Bank, Kamana Sewa Bikas Bank,
Jyoti Development Bank Ltd., etc. are the examples of
these types of banks. All private development banks
are established under the “Development Bank Act Private Development Bank
2052”.

Points to Remember

i. Agricultural Development Bank ii. Industrial Development Bank
iv. Rural Development Bank v. Private Development Bank

13. Functions of Development Bank
The functions performed by the development banks are divided into the following
two groups:

74 Aakar’s Office Practice and Accountancy - 10 Financial Institutions 75