Nepal Rastra Bank Mandates National ID Update For Bank Customers To Strengthen KYC Compliance

16th July 2026, Kathmandu

Nepal Rastra Bank has introduced a new provision requiring all banks and financial institutions to update the National Identity Card details of their customers by the end of Ashwin 2083.

NRB Mandates National ID

The directive has been issued through the central bank revised Unified Directives as part of strengthened Know Your Customer compliance and applies to all licensed banks and financial institutions across Nepal.

The central bank stated that the new provision is part of its ongoing efforts to strengthen customer identification, regulatory compliance, and the integrity of the country banking system. Banks and financial institutions are expected to complete the required updates within the specified timeframe to ensure compliance with the revised regulatory framework.

KEY HIGHLIGHTS OF NEPAL RASTRA BANK NATIONAL ID DIRECTIVE

The enforcement of stricter identity verification rules aims to modernize the financial sector and integrate national data systems. All licensed institutions must ensure that the biometric and data records align with the state identity database.

The implementation of this new regulatory framework covers several operational rules, focusing on digital collection, regular tracking, and special category exclusions:

DIGITAL KYC UPDATES FOR NATIONAL ID HOLDERS

Under the new arrangement, banks and financial institutions must ensure that the National ID status of every account holder is updated by the prescribed deadline. According to Nepal Rastra Bank, banks should collect customer self declaration through mobile applications or other suitable digital channels indicating whether they have obtained a National Identity Card. Customers who already possess a National ID will be required to submit either their National Identity Card or their National Identity Number. This information must then be incorporated into the customer KYC records.

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SEMI ANNUAL REMINDERS FOR CITIZENS WITHOUT NATIONAL ID

For Nepali citizens who have not yet obtained a National Identity Card, banks will be required to send reminders every six months through mobile applications or other appropriate communication channels. The objective of this repetitive notification strategy is to encourage customers to obtain their National ID and complete the official KYC update process before the final timeline expires.

EXEMPTIONS FOR SPECIFIC VULNERABLE POPULATIONS

Nepal Rastra Bank has clarified that the National ID requirement will not be mandatory for certain groups of people who face difficulties in processing state identity cards. The exceptions apply to individuals who are unable to care for themselves, persons with disabilities or those requiring special assistance, vulnerable citizens, and children below 16 years of age. In such cases, banks may continue to open accounts and provide regular banking services based on other valid identity documents as permitted under existing regulations.

FINANCIAL TRANSPARENCY AND INTEGRATION TARGETS

This strategic move by Nepal Rastra Bank reflects a broader effort to synchronize the banking network of Nepal with the central citizen database managed by the government. By utilizing the National Identity Number, financial institutions can significantly reduce identity theft, double mapping of accounts, and fraudulent financial transactions. It provides a foolproof method to trace banking histories and ensure that money laundering risks are minimized at all entry levels.

The shift toward self declaration through mobile applications highlights the reliance of the central bank on digital transformation. This approach minimizes the need for customers to visit brick and mortar bank branches physically, thereby reducing administrative overhead for commercial banks, development banks, and finance companies alike. Incorporating the National ID into the financial ecosystem allows the state to build a more transparent digital economy capable of supporting advanced digital lending and paperless banking operations.

Furthermore, the central bank structured approach to sending regular reminders ensures that citizens are continuously kept aware of their compliance status. For the exempted categories, the flexible guidelines show that Nepal Rastra Bank balances regulatory control with social responsibility, ensuring that the marginalized populations do not lose access to essential financial tools and credit facilities due to documentation hurdles.

For More: NRB Mandates National ID