[4] The scheme was initiated with the intentions of removing financial hardships to the army personnel after their retirement.
Under the scheme, the army staffs were required to contribute a specific percentage of their salary to their provident fund (PF) account in Sainik Drabya Kosh.
A separate organization named Nijamati Provident Fund was established in 1944 to manage the scheme for civil servants working within Kathmandu.
In 1959, Employees' Provident Fund Department was established under the Ministry of Finance and Economic Affairs.
This department was entrusted with the management of both Sainik Drabya Kosh and Nijamati Provident Fund.