19th October 2025, Kathmandu
The upcoming service shutdown at Himalayan Bank Limited (HBL) from Kartik 3 to Kartik 10, 2082 (October 20–27, 2025), coinciding with the peak festive season of Tihar and Chhath, marks a significant, albeit controversial, move toward banking modernization in Nepal.
HBL to Halt Services
While the transition to the advanced T24 Release R23 core banking system necessitates a complete halt on most conventional services, HBL has ensured that a few critical functions remain available to customers. Understanding which services are still accessible is paramount for effective financial management during this extended holiday period, especially when cash and transactional needs are at their highest.
Services That Will Remain Operational
Despite the complete closure of branch operations, bank counters, and digital platforms like mobile and internet banking, Himalayan Bank has made arrangements to keep essential transactional gateways functional. This continuity is designed to provide customers with access to their funds for necessary festive expenditures. The services that will continue to work are:
Automated Teller Machines (ATMs): Customers will still be able to use their debit cards to withdraw cash from HBL’s network of ATMs, as well as those of other banks through interbank networks like Nepal Electronic Payment System (NEPS) or SCT, subject to standard transaction limits. This is the most crucial channel for accessing physical cash during the shutdown.
Point of Sale (POS) Machines: Debit and credit cards can still be used to make payments at merchants who have POS terminals, allowing for card-based purchases instead of cash transactions. This is vital for shopping during the festive season.
QR-Based Payment Services: Transactions using QR codes, typically part of a wider national payment switch like Fonepay (which connects various banks), are expected to remain functional. This allows for direct payments from a bank account to a merchant account via third-party payment platforms, mitigating the immediate need for physical cash or a functioning mobile banking application for simple transfers.
The functionality of these three services largely relies on external ‘switch’ systems that route card and QR transactions independently of the bank’s core system, which will be offline for the upgrade. This is a standard industry practice during a major core banking migration to maintain a basic level of public access to funds.
Services That Are Completely Shut Down
The upgrade process requires the bank’s core system—the central nervous system that manages customer accounts, ledgers, and internal banking logic—to be taken entirely offline. As a direct consequence, all services that rely directly on this central system will be inaccessible throughout the eight-day closure:
Branch and Counter Services: All physical bank branches and extension counters will be closed, meaning no over-the-counter deposits, withdrawals, fund transfers, check clearing, account opening, or loan services will be available.
Mobile Banking: The HBL mobile application will be non-functional, halting services such as internal fund transfers, bill payments, account balance inquiries, statement generation, and mobile top-ups.
Internet Banking (eBanking): Similarly, the bank’s internet banking portal will be down, preventing online transfers, international payments, or managing any form of digital banking services.
Fund Transfers: All internal and external fund transfer mechanisms, with the likely exception of QR-based retail payments, will be suspended, including services like Interbank Payment System (IPS) and high-value transfers.
Cheque Clearing: The processing of all cheques will be suspended until the system is restored.
Remittance Services: The bank’s inward and outward remittance services, including the proprietary HimalRemit™ system, will be inaccessible, potentially causing delays for families expecting funds during the festival.
The Technical Pivot: Understanding the T24 Release R23 Upgrade
Himalayan Bank’s decision to undergo a complete service suspension is driven by the migration to the T24 Release R23 system, a major software package provided by Temenos Transact, a global leader in core banking software.
Core Banking System (CBS) Migration: A CBS is the central hub for all banking operations, including account management, transaction processing, loan servicing, and regulatory compliance. Upgrading the CBS is arguably the most complex and risky IT project a bank undertakes, often requiring a complete system shutdown, known in the industry as a “Big Bang” deployment strategy, to ensure data integrity during the cutover. The new system is generally expected to bring:
Enhanced Performance: Faster processing speeds for daily banking transactions.
Improved Scalability: The ability to handle a higher volume of transactions and a growing customer base more efficiently.
Modern Features: Access to new, API-driven integration capabilities, which are essential for building advanced digital products and services, such as real-time payments and personalized customer offers. The R23 release signifies a major version jump, often incorporating features like cloud-native architecture for better agility and continuous innovation.
Stronger Security: Upgraded security patches and compliance mechanisms to meet modern regulatory standards and counter new cyber threats.
The ultimate goal of this T24 R23 migration is to establish a more robust, agile, and future-proof digital infrastructure for Himalayan Bank, replacing the older or disparate systems.
Controversy and Customer Impact During the Festive Season
The timing of the eight-day shutdown has been the primary source of public criticism. Tihar and Chhath are two of the most significant festivals in Nepal, characterized by a massive surge in cash withdrawals, fund transfers, and retail payments.
The Festive Strain: During this period, families require a high degree of financial access for:
Gifting/Dakshina: Traditional giving of cash to relatives and elders.
Shopping: Large purchases for decorations, clothes, and essential supplies.
Travel/Remittance: Increased money transfers for family members traveling or those sending money home from abroad.
By closing for this entire duration, Himalayan Bank forces its customers to rely heavily on the limited functionality of ATMs and POS machines, which are prone to running out of cash or experiencing service disruptions due to high demand. The closure is further compounded by the fact that the bank remains shut until Kartik 10, a day longer than many other banks, extending the period of inconvenience. The expressed frustration on social media underscores the real-world impact of the technical decision coinciding with a culturally and economically critical time. The bank’s long-term benefit of a better system is currently overshadowed by the immediate, high-impact disruption to customer convenience.
SEO Summary for Financial Resilience
This SEO article focuses on the immediate impact of Himalayan Bank’s core banking system (CBS) upgrade on customers during the peak Nepali festivals of Tihar and Chhath. The key takeaway is the stark division between functional and non-functional services.
Key Services Still Working:
ATMs for cash withdrawals.
POS Machines for card payments at merchants.
QR-based Payments through third-party platforms.
Key Services Shut Down:
Branch Banking and Counter Services.
Mobile Banking and Internet Banking.
All forms of Fund Transfers (other than QR).
Cheque Clearing and Remittance Services.
The underlying cause is the migration to the Temenos T24 Release R23 system, a necessary but disruptive step towards a faster and more scalable digital banking platform. The controversy highlights the critical challenge for banks: scheduling major IT transformations to minimize customer impact, especially during periods of maximum financial activity like a national festival. Himalayan Bank customers are advised to plan and pre-withdraw sufficient cash or utilize alternative bank facilities for transfers and essential financial activities before the shutdown period.
For More: HBL to Halt Services