Introduction
Financial Institutions are established in Nepal with the motive to help uplift the economic situation of the downtrodden Nepali people. However, most of the finance institutions are established and concentrated in urban areas and run in conventional way. So the rural poor have no access to the financial services. Many of the development agencies have attempted to create groups and run micro-finance programs but after the completion of their projects such groups are left unnoticed with no further idea and help. According to the World Bank study still around 50% of the total population has no access in financial services.
 
The Jana Utthan Pratisthan undertook the research outcome (Social Inclusion in Microfinance by Dr Man Bahadur Bk, 2010) to promote community banking for building inclusive financial system and took initiative to establish Jana Utthan Samudayic Bank Ltd. with some new ideas and techniques such as ‘credit first individual intervention’. Even though it is registered under the microfinance development bank it has been designed as the community banking initiatives. The main aim of this bank is to promote financial inclusion in community level so as to enhance economic situation of the rural poor. Its motto is "Building Inclusive Financial System Extending Service to the poorest of the poor" It also aims to promote the indigenous knowledge and traditional skill to bring it up to the commercial scale. The bank has been designed in such a way to reach the most unreached clients of the community with some specific model and products.
 
The Bank has been registered in April 10, 2010 under Company Act. 2006 and started banking operation from  November 14, 2010 under the Bank and Financial Institution related Act,2006. Since its establishment the bank has been involved in the Global Microcredit Summit Campaign and received certificate of appreciation for its contribution to bring the poor families out of poverty. Likewise it is also involved with the Smart Campaign for Client Protection. Moreover, the community banking has been recognized as the third generation microfinance (Nepal Zone of Peace: A Revised Concept by Isabelle Duquesne published in 2011).

Special features of the bank
  • It is a upgraded model of microfinance called ‘Community Banking’- an initiative to involve group members into the bank’s management through shareholding,
  • It has designed the ‘credit first individual intervention approach’ to reach the poorest of the poor,
  • It has designed C+++ services including  individual counseling, skill development training, business development services, entrepreneurship training, business consultancy etc as per the members’ requirement and potential,
  • It is a model enhancing financial operation in the community level providing professional supports from the bank,
  • Its products are designed based on the need analysis of the deprived groups of the community, i.e. enhancing indigenous knowledge, traditional skill and occupations into a commercially viable level,
  • Child/youth saving scheme has been a part of the bank’s services to create saving habit as a life skill,
  • It promotes innovative community projects such as greenery initiatives (for forest user groups), rural tourism, renewable energy, small hydropower, community irrigation, community insurance etc,
  • It is an outcome of the empirical research on social inclusion in microfinance done by Dr Man Bahadur Bk and the National Microfinance Summits (2008 and 2010) on ‘Building Inclusive Financial Services’,
  • The community banking model is already tested by JUP-Nepal, the institutional promoter. The organization has been practicing the model since 2000 with various development partners,
  • It is promoted by the development professional working in this field aiming to contribute in building inclusive financial system so as to empower deprived groups and communities,
  • It is completely computer based with sophisticated banking software which includes SMS banking, mobile banking etc.