CIT, Siddhartha Bank sign gratuity, retirement fund management deal

KATHMANDU: Citizen Investment Trust (CIT) and Siddhartha Bank have signed an agreement on the operation and management of gratuity and retirement funds.

The memorandum was signed by Parbat Kumar Karki, Executive Director of CIT, and Sundar Prasad Kadel, Chief Executive Officer of Siddhartha Bank.

Under the terms of the agreement, the bank’s contributory and non-contributory gratuity and other retirement accounts, previously managed in-house, have been transferred to CIT.

CIT will assume responsibility for administering the gratuity and retirement funds of approximately 2,000 Siddhartha Bank employees.

In accordance with the amendment to the Finance Act, 2082, Siddhartha Bank has completed the transfer of its retirement fund to CIT. From the current fiscal year 2025–26, the Government of Nepal requires all retirement funds previously approved by the Inland Revenue Department (IRD) to be affiliated with CIT or equivalent bodies.

The IRD on July 15 issued a notice confirming that Section 23 of the Finance Act, 2082, as enacted under the Income Tax Act, 2058, mandates affiliation of IRD-approved retirement funds with CIT or similar entities by mid-July 2026.