Being a part of society, we should always have a responsibility toward society. Corporate social responsibility (CSR) is the responsibility of any corporate body towards society besides generating profit. It is the generation of profit along with fulfilling social responsibility. It is carried out by charitable endeavors for a society that focuses on the environment, workers, community, underprivileged sector, and more. The banking sector has a wide range of stakeholders and is well integrated into society. In order to make this industry socially accountable, many nations have established reporting criteria and CSR regulations.

In Nepal, Nepal Rastra Bank introduced a CSR directive in the Fiscal Year 2016/17 for the first time. In accordance with latest directives of Nepal Rastra Bank (NRB), BFIs are needed to create a CSR fund with a minimum contribution of 1 percent of net profit that is to be spend in specified CSR heads in the next fiscal year. Nepal banking industry consists of 20 finance companies, 72 microfinance institutions (MFIs) and one infrastructure development bank. There are different heads where the CRS has been working according to Unified Directives, 2020. These heads are listed below:

1. 1.    Social projects which includes education, health, natural disasters, environmental protection, cultural promotion, infrastructural improvement in rural areas.
3. 2.     Financial literacy: BFIs are required to spend 5 % of the CSR fund in various financial literacy programs and targeted programs to educate female and backward class regarding financial services in order to increase financial access.
5. 3.    Direct donation to extremely poor people devoid of education and health.
7. 4.    Activities related to achievement of SDGs
9. 5.    Expenses made for the prevention, control and treatment of employee against COVID-19 and similar pandemics.
11.  
13. 6.    Donation to orphanage and old age homes.
15.  

References:

Adhikari, S. (2013). Corporate social responsibility of commercial bank in Nepal: Manager’s Perception and Bank’s Real Performance. Unpublished master’s thesis. Norwegian University of Life Sciences. Retrieved from https://nmbu.brage.unit.no/nmbu-xmlui/bitstream/handle/11250/187949/CSR%20thesis.pdf?sequence=1&isAllowed=y

https://www.nrb.org.np/contents/uploads/2021/08/CORPORATE-SOCIAL-RESPONSIBILITY-IN-NEPALESE-BANKING-INDUSTRY.pdf?fbcli