Relief for Nepali Living Abroad: NRB Relaxes National ID Rule For Bank Accounts After Public Complaints

KATHMANDU, July 19 — Nepal Rastra Bank has relaxed its National Identity Card rule for bank accounts after the earlier mandatory requirement created difficulties for many customers, especially senior citizens, people in rural areas, persons with disabilities, and citizens who had not yet received their National ID details.

The central bank’s revised arrangement gives banks and financial institutions a more flexible way to collect National ID information without immediately disrupting access to banking services.

Customers Get Time Until Ashoj 2083

Under the amended rule, banks and financial institutions must collect a self-declaration from account holders by the end of Ashoj 2083.

Customers will have to declare whether they already have National Identity Card details or not. Banks can collect the declaration through mobile banking apps or other suitable channels.

This means customers do not have to immediately produce the National ID number in every case. The focus has now shifted to confirming the customer’s status first.

Bank Accounts Will Not Be Frozen Only Over Missing NID

One of the biggest changes is that banks cannot freeze an account only because the customer has not yet received or submitted National Identity Card details.

Earlier, the strict interpretation of the NID rule had created fear among account holders that their accounts could be blocked if they failed to update their details on time.

With the new amendment, customers who have not yet been able to obtain National ID details can continue using their bank accounts. Banks will instead have to keep reminding them to update the information.

Reminder Every Six Months

For customers who have not submitted National ID details, banks will have to send reminders every six months.

These reminders can be sent through mobile banking apps, SMS, email, or other available communication channels.

The purpose is to encourage gradual compliance without cutting people off from basic banking access.

Relief For Citizens Abroad

Nepali citizens living outside the country will also receive flexibility under the revised system.

Non-Resident Nepalis can open online bank accounts without immediately submitting National ID details. However, they will have to provide the details within 35 days after returning to Nepal.

This provision is expected to make online banking access easier for Nepalis living abroad, especially those who do not currently have access to National ID enrollment or physical verification services in Nepal.

Exemption For Vulnerable Groups

The amended rule fully exempts some groups from the National ID requirement.

The exemption applies to people who are incapable of self-care, disabled and helpless citizens, and children below 16 years of age.

This change is important because the earlier rule had raised concerns that people who already face difficulty accessing government services could also be pushed out of the banking system.

Why NRB Changed The Rule

The central bank appears to have taken a more practical approach after complaints that the previous rule was difficult to implement equally across the country.

Many citizens, especially in remote areas, had not been able to receive National ID details easily. Elderly citizens, people with disabilities, and those dependent on others also faced problems visiting government offices, completing biometric procedures, or updating bank records.

The new arrangement tries to balance two goals: linking banking records with the national identity system and protecting ordinary citizens from losing access to financial services.

What Banks Must Do Now

Banks and financial institutions will have to update their internal systems to collect self-declarations from customers.

They will also need to create reminder systems for customers who have not yet submitted NID details, maintain updated records, and make sure account services are not stopped only because the National ID has not been provided.

For digital banking users, the process may be handled through mobile apps. For others, banks may use branches, customer service desks, or alternative communication channels.

What Customers Should Know

Customers who already have National ID details should update them with their bank when requested.

Those who do not yet have National ID details should submit a self-declaration through the available channel provided by their bank.

Customers should also avoid panic because the revised rule does not allow banks to freeze accounts only due to missing NID details.

A Shift From Punishment To Practical Compliance

The amendment marks a shift from strict enforcement toward a more accessible compliance system.

Instead of immediately penalizing customers who have not yet received National ID details, the new rule gives them time, allows self-declaration, and protects vulnerable citizens from unnecessary banking restrictions.

The move is expected to provide relief to thousands of account holders while still allowing the banking system to gradually connect customer records with Nepal’s national identity framework.