NRB Introduces New Dormant Account Rules to Strengthen Financial Crime Prevention

Kathmandu — Nepal Rastra Bank (NRB) has rolled out a new set of regulations requiring banks and financial institutions to tighten oversight of dormant accounts, as part of broader efforts to reduce financial crime and curb the misuse of inactive banking channels.

The measures, introduced through amendments to the Unified Directives 2082, were issued by the Bank and Financial Institutions Regulation Department under the authority granted by Section 79 of the Nepal Rastra Bank Act, 2002. For the first time, the central bank has established a dedicated regulatory framework for dormant accounts, requiring all banks and financial institutions to prepare and implement action plans to reduce their number by mid-January 2027.

Before an account is classified as dormant, banks must make reasonable efforts to alert customers through phone calls, text messages, emails, or other digital communication channels. Once an account becomes inactive, institutions will be required to contact the account holder at least every six months, urging them to reactivate the account while maintaining records of all such communications.

To make account management more convenient, the central bank has also instructed banks to allow customers to close accounts from any branch nationwide or through mobile and internet banking platforms. Where a customer requests account closure, the remaining balance must first be transferred to another account held by the same customer before the account is formally closed.

The revised framework also simplifies the process of restoring dormant accounts. Customers should be able to reactivate their accounts from any branch after completing identity verification, while banks must introduce monitoring systems to detect unusual or suspicious transactions that may occur once an inactive account is reactivated.

Beyond operational changes, NRB has directed banks to step up public awareness efforts by regularly educating customers about dormant accounts, the risks of their misuse for illicit fund transfers, and other forms of financial crime. Banks have also been instructed to strengthen employee training so staff are better equipped to identify suspicious activity and prevent dormant accounts from being exploited for illegal financial transactions.