Child Savings Bank Account Encouraged by Nepal Rastra Bank
3rd February 2026, Kathmandu
In an effort to cultivate a culture of saving and long term fiscal responsibility, Nepal Rastra Bank (NRB) has issued a nationwide call to parents and guardians to prioritize the opening of bank accounts for minors.
Child Savings Bank Account
The central bank’s latest financial literacy directive emphasizes that the “Child Savings Bank Account” is not merely a financial product but a critical educational tool. By integrating children into the formal banking system, the NRB aims to build a generation that understands the nuances of money management, interest accumulation, and the difference between impulsive spending and strategic saving.
This initiative is part of the NRB’s Fourth Strategic Plan (2022-2026), which seeks to enhance financial inclusion and literacy across all 77 districts of Nepal.
The Importance of Early Financial Socialization
The Nepal Rastra Bank notes that financial behavior is often formed during childhood. When parents involve children in the process of visiting a bank or checking an account statement, it demystifies the banking system. Early exposure helps children grasp fundamental concepts such as:
The Value of Time: Understanding how money grows over years through interest.
Goal Setting: Saving for specific milestones like higher education, a first bicycle, or a personal project.
Delayed Gratification: Learning that setting aside small amounts today leads to significant purchasing power in the future.
Research cited by the NRB suggests that children who manage their own savings accounts are less likely to fall into debt traps and more likely to exhibit prudent investment behaviors as adults.
Simplified Documentation and Eligibility
To ensure that every child in Nepal can access a bank account, the NRB has mandated that all commercial banks (Class A), development banks (Class B), and finance companies (Class C) offer simplified account opening procedures for minors.
Minimum Age: There is no minimum age requirement; an account can be opened as soon as a birth certificate is issued.
Advertisement
Required Documents: A birth registration certificate issued by the local ward office or a minor identity card is sufficient.
Guardian Role: For children under the age of 18, a parent or legal guardian acts as the account operator. The guardian’s citizenship certificate and photographs are also required.
Minimum Balance: Most banks in Nepal now offer “Zero Balance” child savings accounts to encourage participation from low-income families.
Operating and Transitioning the Account
The Child Savings Bank Account follows a structured legal path as the minor grows. While the child is the “beneficiary,” the parent is the “operator.”
Management Phase (Ages 0-18): The guardian manages all deposits and withdrawals. Many banks allow children to have a “Minor Debit Card” with restricted limits to teach them ATM usage under supervision.
Transition Phase (Age 18+): Once the child reaches the legal age of 18, they must visit the bank to update their KYC (Know Your Customer) details. Their own citizenship certificate replaces the birth certificate as the primary ID, and they gain full, independent control over the funds.
Financial Literacy and the Role of Schools
The NRB is also coordinating with the Curriculum Development Center (CDC) to integrate financial literacy into the national school curriculum. This synergy ensures that what children learn in the classroom—such as basic arithmetic and the concept of profit and loss—is applied in real life through their bank accounts.
Banks are encouraged to host “School to Bank” programs where students visit local branches to learn about:
- How to fill a deposit slip.
- How to read a passbook.
- The importance of digital security (e.g., not sharing PINs).
Long Term Economic Impact for the Nation
From a national perspective, the promotion of child savings accounts serves as a tool for “Financial Inclusion.” By bringing the younger population into the banking net, the NRB ensures a steady flow of domestic deposits which are crucial for the country’s liquidity. It reduces the reliance on informal saving methods like keeping cash at home, which is both risky and unproductive for the economy.
Conclusion
The push for Child Savings Bank Account awareness by Nepal Rastra Bank is a visionary move toward a more “Financially Literate Nepal.” By simplifying the entry process and focusing on the educational aspect of banking, the NRB is empowering parents to secure their children’s futures. For parents, opening an account is a small step that yields lifelong benefits, ensuring that their children grow up with the confidence to navigate an increasingly complex global economy.
For More: Child Savings Bank Account
