Relief from Banking Hassles for the General Public: Centralized Customer Identification System

Now, the general public will no longer need to update their personal information at each bank where they hold an account. Nepal Rastra Bank (NRB) is preparing to implement the Centralized Customer Identification System (Centralized KYC) for the exchange of depositor information among banks and financial institutions starting from the new fiscal year.

Centralized KYC System

According to NRB's Assistant Spokesperson, Dr. Dilliram Pokhrel, the study for establishing the Centralized Customer Identification System has been completed. This system will facilitate the exchange of customer information among banks and financial institutions. NRB is currently discussing the study report received from independent consultants and preparing to finalize it after considering suggestions from stakeholders.

Monetary Policy and Centralized KYC

The monetary policy for the fiscal year 2080/81 mentions provisions for the exchange of customer information among banks, financial institutions, and other payment-related institutions authorized by the government. It also includes integrating the national identity card issued by the government into the Centralized Customer Identification System.

Convenience for the General Public

Currently, the general public faces the hassle of filling out the Know Your Customer (KYC) form every year for each bank account they hold. NRB's initiative will allow individuals to update their information in one place. Once integrated into the system, customers will receive a unique identification number, enabling banks to update their information.

Mandatory National Identity Card

The government recently published a notice in the official gazette, making the national identity card mandatory for accessing public services from the upcoming Magh. Once the Centralized Customer Identification System is established, the system operator will update the general public's information.

This system is expected to relieve the general public from banking hassles and make banking processes more convenient and efficient. Nepal is learning from India, which has already implemented this system since 2016.