NRB Eases National ID Rule for Banking, Ends Automatic Account Freeze

Nepal Rastra Bank (NRB) has revised its National Identity Card (NID) policy for banking services, introducing a more flexible framework to ease compliance while strengthening customer verification. Under the new directive, customers whose bank accounts were opened before Magh 1, 2080 must update their National ID details by the end of Ashwin 2083. Those who fail to do so may have their accounts classified as unverified, potentially limiting access to certain banking services and high-value transactions. The revised policy also removes the provision for automatic account freezes solely due to the absence of a National ID. Instead, banks are required to send reminders every six months through digital channels, while customers can submit self-declarations via mobile banking or other online platforms until the deadline. The central bank has also allowed Non-Resident Nepalis (NRNs) to open bank accounts online without an NID, provided they update their details within 35 days of returning to Nepal. In addition, children below 16 years, persons with disabilities, individuals unable to care for themselves, and other vulnerable groups have been exempted from the mandatory NID requirement. NRB said the changes aim to strengthen KYC compliance while making banking services more accessible and customer-friendly.