NRB Eases Mandatory National ID Requirement for Bank Accounts, Sets Compliance Deadline to Ashwin 2083

Nepal Rastra Bank (NRB) has significantly relaxed its policy on the mandatory use of the National Identity Card (NID) for banking services, introducing a more flexible framework aimed at reducing inconvenience for customers while maintaining financial security.

Under the revised directive, bank customers with accounts opened before Magh 1, 2080, are required to update their National ID details by the end of Ashwin 2083. Customers who fail to update their information by the deadline may have their accounts classified as unverified, which could result in restrictions on certain banking services and high-value transactions.

The central bank said the measure is intended to strengthen Know Your Customer (KYC) verification, enhance financial security, and reduce risks related to fraud, cybercrime, and money laundering.

The previous directive had drawn criticism after many customers, particularly those in rural areas, senior citizens, and people with disabilities, faced difficulties obtaining National ID cards, resulting in numerous accounts being frozen. In response, NRB has introduced a series of amendments designed to make compliance easier while ensuring uninterrupted access to banking services.

1. Self-Declaration Until Ashwin 2083: Customers now have until the end of Ashwin 2083 to declare whether they possess a National Identity Card. The declaration can be made through banks' mobile banking applications or other digital channels.

2. No Automatic Account Freeze: Banks are no longer allowed to freeze accounts solely because a customer does not yet have a National ID. Instead, financial institutions must send reminders every six months through mobile banking or other communication channels, encouraging customers to update their identity information.

3. Relief for Non-Resident Nepalis: Nepali citizens living abroad can now open bank accounts online without submitting a National Identity Card. They must, however, provide their NID details within 35 days of returning to Nepal.

4. Exemptions for Vulnerable Groups: The revised policy exempts the following groups from the National ID requirement:
i. Individuals incapable of self-care
ii. Persons with disabilities and other helpless citizens
iii. Children below the age of 16

The amendment marks a shift from strict enforcement toward a more practical and citizen-friendly approach, allowing customers to continue accessing banking services while completing the National ID registration process. The revised policy seeks to balance stronger financial compliance with greater accessibility for the public.