In an encouraging move for citizens in the country, the Nepal Rastra Bank (NRB) has simplified the process of opening bank accounts across all banks. Citizens can now open a ‘zero balance’ account.
The central bank amended the Nepal United Directive 2018 and has directed Class A, B, and C to implement the new rule with the aim to bring more people into the fold of banking.
NRB Spokesperson Narayan Prasad Paudel said that the national bank is relaxing the rules in line with the government’s plan of expanding financial inclusion.
To strengthen the campaign, NRB has directed banks and financial institutions to simplify paperwork for opening accounts.
Additionally, depositors conducting transactions up to NPR 100,000 per year will be exempted from filling know-your-customer (KYC) forms.
“If transactions exceed this limit, account holders will have to provide details under know-your-customer,” reads the revised directive.
Paudel says that simplified paperwork will increase rural people’s access to the financial system. He added that banks can put NPR 100 into each individual’s bank accounts as a corporate social responsibility initiative.
As part of its development drive for FY 2018-19, the government aimed to expand its banking services to all local units.
Until mid-March 2019, 42 out of the 750 Nepali local units had no access to banking.