KATHMANDU, July 11: Nepal Rastra Bank (NRB) has directed banks and financial institutions (BFIs) to formulate and implement an action plan to reduce the number of dormant accounts by mid-January 2027.
In a revised Unified Directive issued on Friday, the central bank's Department of Bank and Financial Institutions Regulation instructed Class 'A' commercial banks, Class 'B' development banks and Class 'C' finance companies to take concrete measures to minimise inactive accounts while improving customer communication and banking services.
Under the revised directive, BFIs must regularly notify customers through phone calls, SMS and email before their active accounts are classified as dormant. Customers must be given at least six months' notice to reactivate their accounts, and banks are required to maintain records of all such notifications.
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The NRB has also instructed BFIs to simplify account closure procedures. Customers should be able to close their accounts from any branch of the concerned institution nationwide or through mobile and web-based banking applications.
Similarly, customers opting to close their accounts must be allowed to transfer the remaining balance to an account held at another bank or financial institution, either by submitting a request in person or through digital banking platforms.
To improve customer convenience, the central bank has also directed BFIs to enable dormant accounts to be reactivated from any branch across the country after verifying the account holder's identity.
At the same time, the NRB has asked banks to exercise heightened vigilance over transactions conducted through reactivated dormant accounts to guard against potential money laundering, fraud and other suspicious financial activities.
The revised provisions are aimed at reducing the growing number of inactive accounts, strengthening customer protection, promoting digital banking services and enhancing the integrity of the country's financial system.
