The opening of commercial banks started with the policy of liberalization and privatization adopted by the Nepali Congress government formed in 2048. In the 50s, there were four banks in joint venture. In 2051, approval was given to open four more banks. National Commercial Bank wholly owned by the government and semi-government Nepal Bank Limited are the oldest banks in Nepal.

But since the government could not make the government banks competitive, they could not compete with the private banks . Bank experts were of the opinion that there should be competition between commercial banks. But they were of the opinion that since the government runs the bank, such competition has stopped.

There was an idea that money should go into the hands of common people by distributing bank shares publicly. But experts were of the opinion that the government-run National Commercial Bank and Nepal Bank could not compete with private banks. They said that government bank employees are from the old generation who don't even know how to use computers and their thinking is also old.

Due to the inefficiency of the government banks, there was a voice that private banks were willing to increase the interest rate . Especially at that time, due to the government banks, private banks also charged high interest rates. .

There is a need for competition between commercial banks due to complaints that private banks are charging arbitrary interest because the government bank does not want to do so. There was an understanding that since the government commercial bank took interest on its own, the private sector also used it as a base, so there was no competition. 

Due to the open economic policy taken by the government, even though there should be competition in the banking sector, the experts also said that due to the lack of that situation, the customers could not take loans easily. It was assumed that the situation where money was accumulated in banks but there was no investment made the interest on the loan expensive . The officials of the Ministry of Finance used to say that the investment did not increase due to the discrepancy introduced by the commercial banks in the interest rates.

Banks used to give 10 percent interest on savings. But they used to take up to 16 percent in loan investment. Even though the loan interest rate was reduced, there was a growing complaint that the savings would also be reduced. It was believed that all these problems are the lack of competition among commercial banks.

In the second week of November 2050, commercial banks had a surplus of 47 billion. Loan investment was about 20 billion. There was a tendency for commercial banks to purchase government treasury bills but not to invest in borrowers . Because even if there is interest in the government bill, the interest that is safe will continue to come . Therefore, commercial banks invested 15 billion rupees in treasury bills.

Rashtra Bank sources said that the commercial banks are making more profit by putting the amount that does not have to pay interest in the current account into the treasury about 8 billion rupees. But there was no way to stop it. 

Investors preferred to invest crores of rupees in big places . But he used to decide not to trust the debtors who needed two to four lakhs, but to buy treasury bills. The government also canceled the decision to invest only 22 percent of the total savings in the treasury. That's why it was easier to invest in treasury .