National ID Mandatory for Microfinance Account Opening from Magh 1

Nepal Rastra Bank (NRB) has mandated the use of a National Identity Card for opening accounts in microfinance institutions starting from Magh 1. In a directive issued on Thursday, the central bank instructed institutions to ensure account opening is based on the verification of details available in the electronic records of the National ID or its number.

Microfinance institutions are required to comply with the Asset (Money Laundering) Prevention Act, 2064 and Asset Laundering Prevention Regulations, 2073 by identifying and verifying their customers. Institutions must also develop policies and procedures to ensure customer identification and verification, enabling account opening and establishing business relationships through digital means, as per the directive.

The central bank has also directed institutions to update the National ID details for all high-level account holders by Magh 1. Additionally, adequate measures must be taken to safeguard against potential risks and misuse of digital transactions.

This new regulation aims to strengthen customer identification processes and enhance access to banking services through digital platforms, according to NRB.