Mahalaxmi Bikas Bank Requests Customers to Update PAN in Accounts

14th October 2025, Kathmandu

Mahalaxmi Bikas Bank Ltd., one of Nepal’s premier national-level development banks, has taken a proactive step in directing its valued clientele to ensure their banking records are fully compliant with the latest directives from Nepal Rastra Bank (NRB).

MBBL Requests to Update PAN

The current mandate centers on the essential need to update the Permanent Account Number (PAN), particularly for those customers maintaining term deposits exceeding NPR 50 lakh. This directive is a cornerstone of Nepal’s ongoing efforts to digitize and streamline its tax collection process, ultimately benefiting both the banking institution and its customers.

Understanding the Core Regulatory Mandate: Unified Directive 016/081 Clause 8

The request from Mahalaxmi Bikas Bank is not arbitrary; it stems directly from the Unified Directive 016/081, Clause 8, issued by Nepal Rastra Bank. This specific clause is a vital piece of regulatory framework designed to strengthen the nation’s financial governance, specifically concerning taxation on investment income.

The directive explicitly states that all banks and financial institutions are required to collect and maintain the PAN of depositors who hold significant term deposit balances—specifically those whose deposits are over NPR 50 lakh. The primary purpose of this mandatory collection is to facilitate the accurate and transparent reporting of Tax Deducted at Source (TDS) on interest payments, in full adherence to the stipulations of the existing Income Tax Act, 2058.

This mechanism is central to the government’s drive towards a more robust and modern E-TDS system. By linking the interest income and the corresponding TDS to a unique PAN, the system minimizes discrepancies, ensures timely tax credits, and provides a clear audit trail for both the taxpayer and the Inland Revenue Department (IRD).

The Power of E-TDS: How Updating Your PAN Benefits You

For Mahalaxmi Bikas Bank’s customers, updating their PAN offers significant advantages, translating regulatory compliance into personal convenience. The core benefit lies in the seamless integration with the national E-TDS system.

Automatic Tax Reconciliation: Once your PAN is successfully updated in your bank account records, the details of the TDS deducted on your interest income will be automatically linked to your official tax profile with the Inland Revenue Department. This eliminates the manual hassle of tracking and reconciling tax deductions from multiple sources. It provides a real-time, accurate picture of your tax liability and credits.

Simplified Tax Clearance: The accuracy and completeness of E-TDS data, made possible by your updated PAN, is crucial for obtaining an official Tax Clearance Certificate. Whether for business operations, major asset transactions, or applying for large loans, a clear tax status is indispensable. Complete and correct PAN records expedite this process significantly, ensuring you can manage your personal and business finance without unnecessary delays.

Enhanced Transparency and Compliance: By complying with the NRB directive, customers contribute to a more transparent national financial ecosystem. This adherence to mandatory KYC (Know Your Customer) and tax reporting requirements strengthens the banking system against financial malpractices and promotes overall financial stability. Mahalaxmi Bikas Bank’s dedication to this compliance, as a responsible ‘B’ class National Level Bank, reflects its mission to offer safety of deposits and strictly adhere to regulations.

Steps for Mahalaxmi Bikas Bank Customers to Update PAN and KYC

Mahalaxmi Bikas Bank has made the compliance process convenient and accessible, recognizing the value of its large customer base, which it serves through an expansive network across the country. Customers who hold term deposits above the NPR 50 lakh threshold, or who simply wish to ensure their records are pristine, have multiple ways to update their information:

In-Person Branch Visit: The most traditional and often comprehensive method is to visit your nearest Mahalaxmi Bikas Bank branch. The experienced staff will guide you through the process of updating your PAN and ensuring your full KYC details are complete. This is especially recommended if you had previously submitted your PAN but the TDS details appear to be missing or incomplete.

Digital Convenience via Mobile App: For tech-savvy customers, the bank’s commitment to digital innovation shines through its mobile banking platform. You can utilize the Mahalaxmi Smart Sathi mobile banking app and navigate to the eService → Online KYC Form section to submit your updated information digitally.

Official Website Portal: Similarly, access to the update process may be provided directly through the official bank website, www.mahalaxmibank.com, offering a secure online channel for submission.

The bank stresses the importance of not just having the PAN, but ensuring the associated TDS details are properly recorded and linked. If you believe you submitted your PAN in the past but are still receiving communications regarding incomplete TDS records, a direct contact with your branch is the most effective solution to correct and complete your details.

Conclusion: A Step Towards a Digital, Compliant Future

The move by Mahalaxmi Bikas Bank, guided by the Nepal Rastra Bank’s Unified Directive, is a significant stride in integrating banking services with the national tax infrastructure. This mandatory PAN update for high-value term deposit holders is a mechanism for a smoother, more efficient, and fully compliant financial future for every customer. By quickly acting on this request, you secure your tax credits, simplify your future dealings with tax authorities, and continue to enjoy the seamless service that Mahalaxmi Bikas Bank is committed to providing. For any questions or required assistance, customers are encouraged to reach out to the bank’s Central Office in Darbarmarg, Kathmandu, or utilize the provided contact numbers: Phone: 01-5368153, 5368719 or the Toll-free: 16600115015.

For More: MBBL Requests to Update PAN