Question 1

What is the Nepali name for the Citizen Investment Trust (CIT)?

Accepted Answer

Nagarik Lagani Kosh \u2014 CIT is known in Nepali as Nagarik Lagani Kosh.

Question 2

In what year was the Citizen Investment Trust established in Nepal?

Accepted Answer

1991 \u2014 CIT was established on 4th Chaitra 2047 B.S. (18 March 1991) as an autonomous government-owned institution.

Question 3

Unlike the Employees Provident Fund (EPF), which requires mandatory contributions tied to a formal employer-employee relationship, participation in most Citizen Investment Trust schemes is best described as:

Accepted Answer

Open and largely voluntary, available to salaried employees, self-employed persons, and the general public \u2014 CIT offers savings and retirement schemes open to salaried employees, self-employed individuals, and ordinary citizens on a largely voluntary basis, unlike EPFu2019s mandatory employer-employee contribution structure.

Question 4

Which CIT scheme is designed as a voluntary retirement/pension product for self-employed individuals and others outside the formal employer-employee EPF structure?

Accepted Answer

Nagarik Pension Yojana (Citizen Pension Scheme) \u2014 The Citizen Pension Scheme (Nagarik Pension Yojana) lets individuals, including the self-employed, contribute voluntarily toward a pension through CIT.

Question 5

Under the standard Employees Provident Fund (EPF) contribution structure in Nepal, what is the combined employer-plus-employee contribution as a percentage of basic salary?

Accepted Answer

20 percent \u2014 EPF uses a fixed formula of 10 percent from the employee and 10 percent from the employer, for a combined 20 percent of basic salary.

Question 6

Nepalu2019s Social Security Fund (SSF), a separate body from CIT covering private-sector employees, was introduced under which legislation?

Accepted Answer

Social Security Act, 2074 (2017) \u2014 SSF was introduced under the Social Security Act, 2074 B.S. (2017), with contribution-based programs becoming active a few years later.

Question 7

What is the combined employee-plus-employer contribution rate under Nepalu2019s Social Security Fund (SSF)?

Accepted Answer

31 percent (11 percent employee, 20 percent employer) \u2014 SSF contributions total 31 percent of basic salary: 11 percent from the employee and 20 percent from the employer, funding broader social protection beyond retirement savings.

Question 8

Besides retirement savings, which feature distinguishes the Social Security Fund (SSF) from CIT and EPF?

Accepted Answer

It covers broader social protection such as medical, maternity, and disability benefits, not just retirement \u2014 SSF bundles retirement savings with wider social protection, including medical treatment, maternity, and disability/accident benefits, unlike the narrower retirement focus of EPF and most CIT schemes.

Question 9

CIT typically invests contributorsu2019 funds in relatively low-risk instruments. Which of these is a typical CIT investment avenue?

Accepted Answer

Government bonds and fixed deposits \u2014 CIT channels much of its fund into low-risk instruments such as government bonds and fixed deposits to safeguard contributorsu2019 savings.

Question 10

Beyond fixed deposits and government bonds, CIT is also recognized as one of Nepalu2019s active institutional investors in which market?

Accepted Answer

The capital/share market (NEPSE) \u2014 As a large institutional investor, CIT also participates in Nepalu2019s capital market, including share investments on NEPSE, alongside its core savings and pension schemes.

Citizen Investment Trust (CIT) — Practice Quiz

Citizen Investment Trust (CIT) — Practice Quiz

More Citizen Investment Trust (CIT) Practice Sets

Citizen Investment Trust (CIT) — Practice Quiz