Kumari Bank Retirement Fund Schemes and Benefits Guide 2026
25th April 2026, Kathmandu
The Kumari Bank Retirement Fund, previously known as the NCC Bank Retirement Fund, is a comprehensive and hassle free solution designed to help individuals build a substantial retirement corpus.
Kumari Bank Retirement Fund
By offering a range of specialized fund management services, Kumari Bank ensures that employees and institutions can create a reliable financial safety net that provides both protection and growth through periodic bonuses.
Understanding the Range of Retirement Products
The Kumari Bank Retirement Fund has been a trusted partner for employees since 2003, offering uniquely tailored products that cater to different aspects of long term savings. These include:
Provident Fund: A dedicated savings account for employees where contributions are made by both the employer and the employee to build a retirement nest egg.
Retirement Fund: A flexible plan designed to accumulate funds specifically for the post service period of an individual’s life.
Gratuity Fund: A scheme where employers can manage the statutory gratuity payments owed to their employees upon completion of their service.
Leave Encashment Fund: A facility that allows institutions to manage the funds required for paying out unused leave balances to their staff.
All these facilities are accessible through the extensive nationwide branch network of Kumari Bank Limited, ensuring that service is available to contributors regardless of their geographic location.
Key Features of Retirement and Provident Schemes
The structure of these accounts is designed to ensure transparency and security. Provident and Retirement fund accounts are non operative individual accounts opened in the name of the employees but regulated by the employing institution. In contrast, Gratuity and Leave Encashment accounts offer more flexibility and can be operated in either an individual or an institutional name depending on specific requirements.
One of the most valuable features for contributors is the liquidity option. After just one year of consistent contribution, depositors become eligible to apply for a loan against their retirement fund account. Currently, the maximum limit for such a loan is up to 85 percent of the total deposit amount. This provides an essential financial lifeline for employees who may need funds for immediate personal requirements without having to close their retirement accounts.
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Interest Rates and Financial Incentives
The Kumari Bank Retirement Fund Committee determines the interest rates for these deposits, which are subject to periodic adjustments based on market conditions. As of the current review period, a flat interest rate of 4.00 percent per annum is applicable across all schemes, including Provident, Retirement, Leave Encashment, and Gratuity funds.
The interest calculation is highly favorable for the depositor, as it is provided on the daily balance and capitalized on a quarterly basis. A significant advantage of these accounts is that the interest income generated is currently tax free under the prevailing regulations. However, it is important to note that the final payment upon retirement is subject to tax as per the Income Tax Act of the Government of Nepal. For those utilizing the loan facility, the lending interest rate is set at a competitive 1 percent per annum above the applicable deposit rate, with interest payable annually at the end of Ashad.
Exclusive Benefits for Account Holders
Being a member of the Kumari Bank Retirement Fund comes with a variety of ancillary benefits that add significant value beyond simple savings.
Social Allowances: Account holders are eligible for a maternity allowance of ten thousand rupees and a mourning allowance of the same amount, providing support during critical life events.
Banking Discounts: RF account holders enjoy a 50 percent discount on several banking products and services, including credit cards, debit cards, mobile banking, internet banking, and locker facilities. They also receive discounts on Demat accounts and Portfolio Management Services through Kumari Capital.
Housing Support: Contributors can access mortgage based home loans at a highly competitive rate of the bank base rate plus 2 percent per annum.
Bonus Allocation: In addition to the standard interest, the fund allocates surplus profit to every individual account holder in the form of an RF Bonus, further accelerating the growth of the retirement corpus.
Documentation and Compliance Procedures
Opening and managing a retirement fund account involves standard documentation to ensure compliance with the Retirement Fund Management and Operation By Laws. For account opening, individuals need a recommendation letter from their organization, certified copies of their citizenship or passport, and an employee ID card. Organizations must also provide their PAN, registration documents, and a board resolution.
When an employee retires or resigns, they must submit an account closing form along with a recommendation letter from their employer and a copy of their PAN card to facilitate the final payment. For those seeking a loan against the fund, a simple loan deed and a request letter from the organization are required to process the application through any Kumari Bank branch.
Conclusion
The Kumari Bank Retirement Fund is a cornerstone of financial planning for the modern workforce in Nepal. By providing a secure environment for provident and gratuity funds, coupled with attractive loan facilities and social allowances, it ensures that your second innings is as comfortable as your first. As the financial landscape of 2026 continues to evolve, having a trusted institution like Kumari Bank manage your retirement corpus provides the peace of mind needed for a dignified and secure future. Interested employees and institutions are encouraged to visit their nearest branch to explore how these schemes can be integrated into their long term financial goals.
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