Citizen investment trust is a public financial organization that encourages general public to save through it’s different schemes and programs. It was established in 18th march 1991 but came into operation only in 15th January 1992.CIT has it’s head office in New Baneshwor, Kathmandu and operates in other parts of the country through its two branch offices in Pokhara and Biratnagar. The trust operates according to citizen investment trust act 2047. The main objective of this trust is to increase investment opportunities through encouraging general public to save portion of their income. It acts as investing platform for people by investing collected savings in a lower risk but profitableа projects.
Why Nagarik Lagani Kosh is important?
Nepal, being a developing country requires a lot of investment in productive sectors. In such context, CIT collects small funds from public and invests the accumulated fund in profitable sectors as hydropower, infrastructure development, tourism and so on. For instance, the trust has billions of investment in Upper Tamakoshi Project. In the last two decades of operation of CIT, it has remarkably assisted in the growth of capital market and overall economy of the Nation.
In a country with GDP Per-capita of 682.20 $(2016),а its appreciable that CIT has increased saving culture among citizens and has gained trust of over 500000 clients majority of them being civil service employees, Nepal Army, Nepal police and Armed police force employees аsince its operation. CIT properly invests the collected fund in productive sector in such a way that their аclients get good return without having to worry about risk associated with the investment. It makes investment process simpler and less riskier. In a nation with very less investment culture, CIT encourages public to save in order to invest.
Objectives of CIT (Citizen Investment Trust)
With development of financial institutions in Nepal, saving habit of people has increased remarkably but investment is still a very big deal for general public. In such scenario CIT has been able to make investment more simpler and secured. On one hand CIT is assisting in Economic growth of the Nation through its investments and on the other hand people are receiving a good return on their savings. It is a platform that connects the money available in the market with sectors that require investments. As we know saving leads to capital collection and investment which eventually leads to increased employment, productivity and improved living standards. This is the objective that drives CIT, they collect small funds to invest in large and profitable sectors. CIT is open for all Nepali citizens be it residential or non-residential. Even people with very low income can invest in different schemes in this trust. In addition to these , the trust has recently introduced mandatory insurance programs for employees of several institution namely: Citizen Unit scheme, Employees saving growth retirement Fund, Fund for insurance (Nepal Army),Insurance Fund (Nepal Police ), however we cannot overlook the fact that the mandatory deposit reduces the taxable income of the employees which eventually reduces governments tax revenue. Since, it is a public financed organization, People feel secure about their money and the trust also has maintained thatа faith of clients till the date.
Nagarik Lagani Kosh E-service, ebanking, Mobile banking
With high level of inflation, high percentage of income is spent on consumption these days and it’s tough for people to save, its appreciable how CIT is operating so well and is attracting many clients every day. The shares of CIT currently sell at Rs 3250 today. CIT isn’t a solely profit guided organization, the main motive is make investment process simpler and more secured for general public. CIT these days is adopting innovation and technology, it has started E-service and has recently launched its Mobile Application to reach more people. However, its service is still confined to developed cities only. CIT is still not accessible to people from remote areas so it needs to launch more schemes and operate in such a way that it covers a wider range.