In Nepal, the Citizen Investment Trust (CIT), known as Nagarik Lagani Kosh, is a trusted institution that helps Nepali workers, government employees, retirees, and citizens interested in savings feel secure about their financial future.
Many people have heard of CIT but are not fully aware of how it works and why it is important. This article provides a clear, simple explanation of CIT in Nepal, along with its benefits for government employees, private-sector workers, and retirees, helping you feel hopeful about your financial future.
What is Citizen Investment Trust (CIT)?
The Citizen Investment Trust (CIT) is a government-backed financial institution designed to encourage savings among Nepali citizens, ensuring your funds are protected and making it one of the safest investment options in Nepal.
The CIT is open to a wide range of contributors, making it an accessible savings and investment option for many Nepalese individuals and organisations:
- Government Employees – Typically contribute a fixed portion of their monthly salary to CIT schemes.
- Private Sector Employees – Can participate through employer-sponsored savings or retirement programs.
- Individual Citizens – Any Nepali citizen seeking a secure investment or long-term retirement plan can join.
- Employers – In certain schemes, employers also contribute on behalf of their employees, enhancing overall savings.
The Citizen Investment Trust (CIT) was established on 18 March 1991 (4th Chaitra, 2047 B.S.) as an autonomous institution to provide Nepali citizens with a secure and organised platform for savings and investment. Since its inception, CIT has steadily expanded its role, now managing pensions, retirement funds, and various long-term savings schemes for individuals across the country.
The Government of Nepal closely oversees CIT to ensure transparency, accountability, and the safety of contributors’ funds. These funds are strategically invested in low-risk instruments such as government bonds, fixed deposits, and selected shares, enabling contributors to earn stable, reliable returns over time.
Duties, Responsibilities, and Powers of CIT
Under the Citizen Investment Trust Act 2047, CIT carries out a wide range of responsibilities focused on savings, investments, and capital market development. These functions can be grouped into the following key areas:
Savings-Related Functions
CIT plays a vital role in promoting savings and social security among citizens by:
- Operating social security programs such as contribution-based pensions and health insurance, either independently or in collaboration with other institutions.
- Managing contribution-based term life insurance funds for civil servants, army and police personnel, teachers, and employees of organised institutions.
- Overseeing gratuity funds and pension schemes as prescribed by law.
- Running both voluntary and mandatory retirement funds.
- Managing investor account schemes to encourage disciplined savings and investment habits.
Securities-Related Functions
CIT actively participates in Nepal’s capital market through various activities:
- Investing and reinvesting in different types of securities and maintaining ownership.
- Purchasing securities from both primary and secondary markets, sometimes acting as a wholesaler.
- Providing loans and advances to participants to help them invest in securities.
- Encouraging institutions to issue securities and act as an Issue and Sales Manager.
- Establishing a subsidiary company to support capital market development.
- Underwriting shares independently or in partnership with domestic or international entities, with approval from Nepal Rastra Bank (NRB).
- Offering consultancy services related to capital markets.
Investment and Loan-Related Functions
CIT ensures the productive use of funds by investing and providing financial support in various sectors:
- Investing in Fixed deposits and cash certificates of commercial banks.
- Providing loans to organised institutions backed by guarantees from A-class commercial banks
- Investing in shares of banks, financial institutions, and insurance companies.
- Supporting infrastructure projects under Public-Private Partnership (PPP) models at federal, provincial, and local levels.
- Investing in foreign securities under the Citizen Unit Scheme with NRB approval.
- Investing in government bonds and debentures issued by organised institutions.
- Financing hydropower projects and related infrastructure under government ownership or control.
- Providing loans to legally established institutions and offering various loan schemes for members.
- Offering co-financing (joint loans) with banks and financial institutions.
- Providing bridge financing and short-term advances to institutions.
Other Functions
Additionally, the core roles CIT also provides to specialised financial services:
- Acting as a Trustee for debentures issued by organised institutions.
- Serving as a Custodian by holding securities, managing transactions, and collecting interest or dividends on behalf of investors (both domestic and foreign).
- Offering expert consultancy services on financial management, savings strategies, and alternative investment opportunities.
Why CIT Matters in Today’s Nepal?
Financial uncertainty is a reality for many people, especially after retirement, when regular income stops. CIT addresses this issue by encouraging long-term savings habits. Instead of relying on last-minute planning, individuals who invest in CIT gradually build a fund that can support them in the future.
Moreover, CIT helps cultivate financial discipline. Regular contributions, often deducted directly from salaries, make saving a habit rather than a choice. Over time, these small but consistent contributions add up to a substantial amount, offering both security and peace of mind, inspiring you to plan confidently for your future.
Beyond individual benefits, CIT also contributes to the national economic growth. The funds collected are invested in sectors such as infrastructure and government projects, helping to drive national development.
Benefits of CIT for Workers
The CIT (Nagarik Lagani Kosh) offers Nepali Workers a reliable and secure way to invest their savings. With government backing, it provides a trusted avenue for workers to protect and grow their money. Many Nepali workers use CIT as a tool to plan for retirement and secure their financial future. Beyond savings, CIT offers additional benefits, including tax savings and simple withdrawal options. Below are the key benefits of investing in CIT for Nepali workers:
Key Programs and Schemes
To promote savings and support financial security after retirement, CIT offers several major schemes tailored to different groups:
| Scheme | Description |
|---|---|
| Employees Savings Growth Retirement Fund (ESGRF) | A long-term savings scheme designed for employees to build retirement funds through regular contributions. |
| Citizen Unit Scheme | An investment program that allows individuals to invest and earn returns in a structured and secure manner. |
| Gratuity and Pension Fund | Manages gratuity and pension benefits for employees as per government rules and organisational policies. |
| Investor Retirement Fund Scheme | A scheme aimed at helping individuals grow their investments specifically for retirement purposes. |
| Citizen Pension Scheme | A board and inclusive program for Nepali citizens who are not covered under other formal savings or retirement schemes. |
| Term Life Insurance Fund for NARC Employees | Provides life insurance coverage for employees of the Nepal Agriculture Research Council (NARC). |
| Term Life Insurance Fund for Civil Servants | Covers civil servants, teachers, Nepal Army, Nepal Police, Armed Police Force, National Investigation Department, and local level employees, ensuring financial protection for their families. |
For more detailed information about these schemes and programs, please visit the “Schemes & Programs” Section on the official CIT website.
Conclusion
The Citizen Investment Trust (CIT) stands as one of Nepal’s most trusted and secure financial institutions, helping individuals build a stable financial future through disciplined savings and smart investments. From government employees to private workers and individual citizens, CIT provides an accessible platform for long-term wealth creation, retirement planning, and financial security. With government backing, structured schemes, and multiple benefits such as tax savings and low-risk returns, it plays a vital role not only in personal financial growth but also in Nepal’s overall economic development.
If you are looking for a safe and reliable way to secure your future, now is the right time to consider investing in CIT. Start building your savings today, take advantage of tax benefits, and ensure a comfortable retirement tomorrow.
