Nepal Rastra Bank Issues New Regulations on Freezing and Unfreezing Bank Accounts

Nepal Rastra Bank (NRB) has issued the "Bank Account Freezing and Unfreezing Regulations, 2081." The objective of these regulations is to make the process of freezing and unfreezing bank accounts more clear, transparent, and systematic. The regulations will come into effect from Asoj 1, 2081.

Key Points:

1. Purpose of the Regulations:

   • Issued to make the process of freezing and unfreezing bank accounts more systematic and transparent.

   • Issued under Section 110 of the Banks and Financial Institutions Act, 2073.

2. Freezing Process:

   • To freeze an account in any licensed institution, the authorized officer must make a written request to NRB, specifying the clear legal basis for the action.

   • The request must include the reason for freezing, the account holder's identification, and other legal and personal details.

3. For Natural Persons:

   • A clear reason for freezing the account is required, along with the account holder’s citizenship, passport, national ID card, or other official details.

4. For Legal Entities (Firms, Companies):

   • The official name, address, registration number, permanent account number, and specific account details to be frozen must be clearly presented.

5. Legal Obligation for Freezing Accounts:

   • NRB will not be obligated to freeze an account if there is no clear legal provision for freezing or if the request comes from someone other than an authorized officer.

Conclusion:

These new regulations aim to make the process of freezing and unfreezing bank accounts more systematic and transparent. They provide necessary legal grounds and procedural clarity to banks and financial institutions, ensuring financial stability and adherence to the rule of law.