Inactive Bank Accounts Nepal Government Recovery Plan

29th March 2026, Kathmandu

The Inactive Bank Accounts Nepal policy is a major financial reform initiative introduced by the Government of Nepal to mobilize unused financial resources and improve economic efficiency.

Inactive Bank Accounts Nepal

Under this plan, funds lying idle in bank and financial institution accounts for more than ten years will be identified and brought under the state treasury through a legal process. This move is part of a broader 100-point government action plan aimed at strengthening fiscal discipline, enhancing transparency, and utilizing dormant resources effectively.

What Are Inactive Bank Accounts?

Inactive bank accounts refer to accounts that have had no transactions or activity for a prolonged period, typically ten years or more. In many cases, these accounts remain unclaimed due to a lack of awareness, migration, or the death of account holders without proper documentation. The government now aims to systematically collect data on such accounts from banks and financial institutions across Nepal to ensure that these funds do not remain stagnant in the private sector.

Government Plan for Inactive Bank Accounts Nepal

As per the newly announced policy, the government will:

• Collect detailed records of inactive accounts nationwide.
• Verify whether rightful claimants or legal heirs still exist.
• Transfer unclaimed funds to the national treasury after following all necessary legal procedures.

This initiative is designed to ensure that idle money does not remain unused while the country seeks additional financial resources for national development. The reform is being implemented under the guidance of the Ministry of Finance Nepal, which is responsible for overseeing fiscal policy and revenue systems.

Timeline and Implementation Strategy

The government has set a 90-day deadline to complete the identification and initial processing of inactive accounts. During this period:

• Banks will submit comprehensive account details to the central authority.
• Authorities will verify ownership claims through public notices.
• Legal frameworks will be applied for the final fund transfer.

This structured timeline ensures a time-bound and accountable execution of the policy, preventing unnecessary delays in resource mobilization.

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Legal and Economic Implications

The transfer of funds from inactive accounts to the state treasury will follow strict legal procedures. This ensures that:

• Genuine claimants still have an opportunity to recover their funds before the final transfer.
• The entire process remains transparent and accountable to the public.
• Public trust in the integrity of the financial system is maintained.

Economically, this move will increase government liquidity and support public investment projects, potentially reducing the overall dependency on external borrowing for infrastructure.

Mandatory E-Billing for Large Businesses

Alongside the Inactive Bank Accounts Nepal policy, the government has introduced another significant reform. Large businesses are now required to implement an electronic billing system within one month. This initiative aims to improve tax compliance, reduce revenue leakage, and digitize financial transactions across the country. The e-billing system will enhance transparency and make tax reporting more efficient for both the government and the private sector.

Strengthening Tax Administration

The government has also directed the Ministry of Finance Nepal to develop a comprehensive plan within 45 days to automate tax administration and simplify taxpayer services. These reforms are expected to modernize the revenue system of Nepal and improve the efficiency of monitoring mechanisms. By reducing manual intervention, the government hopes to lower the cost of tax collection while increasing the total revenue yield.

Consolidation of Government Funds

Another key component of the reform is the consolidation of multiple government funds. Currently, there are more than 139 specialized funds operating across the country, many of which are overlapping in function and inefficient in resource utilization. The government plans to merge similar funds within 60 days and redirect those resources toward high-return projects. This will optimize the use of public money and improve the overall financial governance of the state.

Expected Impact of the Policy

The Inactive Bank Accounts Nepal initiative is expected to have wide-ranging benefits, including the better utilization of idle financial resources and increased government revenue without the need to raise taxes. It will also improve transparency in the banking system and enhance efficiency in public financial management. Additionally, it will encourage citizens to remain active and informed about their financial assets and inheritance.

Conclusion

The Inactive Bank Accounts Nepal policy represents a strategic effort by the government to unlock dormant financial resources and strengthen the economic foundation of the country. By combining legal enforcement, digital reforms, and institutional restructuring, Nepal is taking a significant step toward modern financial governance. While the initiative promises substantial benefits, its success will depend on effective implementation and public awareness. Citizens are also advised to review their bank accounts and ensure they remain active to avoid complications in the future.

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