National Identification Card Mandatory for Opening Bank Accounts: NRB
January 10, 2025 | Investopaper
Starting Magh 1, Nepal Rastra Bank has mandated the use of national identification cards for opening bank accounts. This directive requires banks and financial institutions to accept only those accounts that are established with a valid national ID or number. The move aims to enhance security and streamline the identification process for customers.
In addition to the ID requirement for account openings, accounts related to government payments under social security must also be opened based on information provided by relevant government agencies. Customers will need to verify their identities before making withdrawals from these accounts, ensuring that the funds are accessed securely and only by authorized individuals.
Banks are also instructed to confirm that the mobile numbers provided by customers are registered in their own names. This new regulation will tighten controls on banking transactions, as any transactions conducted using mobile numbers registered under different names will be closely monitored. This will prevent fraudulent activities and enhance the integrity of banking operations.
Furthermore, banks must categorize high-ranking officials into five distinct groups for identification purposes: currently serving officials, former officials, high-ranking individuals from neighboring countries, officials from other foreign nations, and those from international organizations. Records of these officials must be kept for ten years after they leave office, an extension from the previous five-year requirement. The central bank has also emphasized the importance of monitoring transactions involving individuals linked to corruption, tax evasion, human trafficking, and other high-risk sectors.
