From January 15, 2025, a national identity card will be required at banks and financial institutions in Nepal for opening an account. The Nepal Rastra Bank issued a unified directive on Thursday to the banks and financial institutions to make a national identity card mandatory for opening an account.

This new requirement will be effective from the 1st of Magh, 2081 (January 15, 2025). In case a person does not have a national identity card, the national identity card number will be required as an alternative.

It says banks and financial institutions have to ensure that they could access the electronic records of the national identity card details. Based on this, account opening must be done strictly with either the physical national identity card or the national identity card number. According to the guidelines issued by the NRB, this will be compulsory from January 15, 2025.

The move will ensure that the verification of the identity of persons opening accounts is smooth and uniform. It is also aimed at reducing fraud, identity theft, and other security threats in the financial sector with the use of the national identity card. Another objective of the move is to make correct and current information about customers available to the financial institutions, which is also a prerequisite for compliance with various financial laws, such as KYC norms.

The national identity card, which has been gradually rolled out in Nepal, is a significant tool in enhancing the accuracy of personal identification. By tying the account-opening process directly to this form of identification, the NRB aims to further integrate modern technology into financial services. This will also help in creating a more organized and transparent financial environment.

For people who do not possess a national identity card yet, the new directive will mean that they must acquire one in order to open a bank account. This could serve as an added incentive for individuals who may not have yet registered for the national identity card to complete the process. As a result, the number of people with a valid national identity card is expected to increase.

The directive has been met with a mixed response from the public. While some view it as a positive step toward greater security and modernization of the financial sector, others have expressed concerns about the challenges for people who live in rural or remote areas, where access to the national identity card may be limited or delayed. Additionally, some people may not have the necessary documentation to apply for the national identity card, which could delay the process of opening a bank account.

Nevertheless, the NRB remains firm in its stance that this new system is essential for the future of the banking and financial sectors in Nepal. As the policy is implemented in January 2025, it will be important to monitor its impact on both financial institutions and the public.