Kathmandu. KATHMANDU: Citizen Investment Trust (CIT) and Nabil Bank have signed a Memorandum of Understanding (MoU) for Managing Retirement Fund for Employees of the Bank. The agreement was signed by PADT Director Chhabi Raman Adhikari and Chief of the Bank’s Human Resources Department Diwas Karki.

The agreement provides for the management of gratuity fund and additional retirement fund based on contribution. The employees of the bank have to deduct the fund on a monthly and annual basis and deposit the amount in the investment fund regularly. The fund will prepare and record the personal accounts of the bank’s employees. The fund will make arrangements to pay the retirement amount to the retired employees on the recommendation of the bank.

Similarly, the employees of the bank will receive interest, return and other facilities as mentioned in the CIT Act, Rules, Byelaws, Directives and Working Procedures. There is also a provision to submit the details of the personal account of the bank, loan amount and investment to the fund.

The Fund will provide payment to the retired or retired employees by deducting tax as per the rules. For this, the bank should provide the details of its employees to the fund, deposit the amount deducted monthly and annually in the concerned fund and recommend for the payment of the retirement amount of the retired employees.

The agreement also states that the amount of the retirement, gratuity and additional retirement fund of the employees of the bank in the retirement funds operated as approved as per the Income Tax Act, 2058 will be transferred to the fund.