NRB Warning: Prevent Illegal Bank Accounts, Fraud & Unlawful Payments in Nepal’s Banking Sector
3rd June 2025, Kathmandu
Nepal Rastra Bank (NRB), the central banking authority of Nepal, has issued an urgent advisory to the public and financial institutions. The advisory stresses strict compliance with the Banking Offenses and Penalties Act, 2064 (2007). It prohibits unauthorized account opening and illegal payment demands. NRB warns that violators will face hefty fines and imprisonment.
NRB Warning Illegal Bank Accounts
Unauthorized Account Opening And Payment Demands Are Illegal
The law forbids anyone from opening bank accounts using fake documents. No one should submit forged papers to open accounts or approve such accounts. Banks must avoid facilitating transactions that originate from fraudulent accounts. These include depositing money, withdrawing funds, or transferring money to other accounts.
Additionally, the use of electronic cards or devices to withdraw money without authorization is strictly banned. Banks should ensure that accounts are not misused for unauthorized electronic transactions.
Moreover, opening accounts in the name of other people or institutions without proper legal authorization is illegal. This practice is strictly prohibited to prevent misuse of banking facilities.
Consequences Of Violations Are Severe
NRB has warned that breaking these laws carries serious consequences. Offenders must repay any financial loss caused by their actions. The law also imposes monetary fines according to the severity of the violation.
Furthermore, individuals found guilty of these offenses may face imprisonment for up to three months. The central bank will not hesitate to take legal action to protect the financial system.
NRB Calls For Vigilance Among Banks And Customers
The Financial Inclusion and Consumer Protection Division of NRB urges all banks and financial institutions to stay vigilant. It stresses the need for strict document verification before opening accounts.
Banks should conduct regular staff training to prevent involvement in illegal activities. They must also perform audits to detect any suspicious transactions early.
At the same time, NRB calls on customers to be cautious. People must ensure they provide genuine documents when opening accounts. They should avoid any involvement in fraudulent banking activities.
Protecting Customers and Strengthening the Banking Sector
This advisory supports NRB’s broader goal to enhance financial security. By stopping unauthorized account openings and illegal payments, the central bank aims to protect customers from fraud.
The initiative also helps reduce risks related to money laundering and financial crimes. Increased transparency and accountability will improve the overall trust in Nepal’s banking system.
Encouraging Reporting of Illegal Activities
NRB encourages everyone to report any suspected illegal banking activities. Early detection and reporting help maintain the system’s integrity.
Banks and customers can contact NRB’s Financial Inclusion and Consumer Protection Division to report concerns. This step is crucial to stopping fraud and safeguarding funds.
Summary
In summary, Nepal Rastra Bank has made its position clear. Opening accounts using forged documents or in other people’s names is illegal. Similarly, demanding payments unlawfully or misusing electronic banking devices is prohibited.
Violators will face fines, imprisonment, and compensation demands. Banks and customers must cooperate to prevent such offenses.
By following these rules, Nepal’s banking system will become more secure and reliable. NRB remains committed to protecting all stakeholders in the financial sector.
Final Note: Stay Informed And Stay Safe
Nepal Rastra Bank urges everyone to stay informed about banking laws. Customers should always verify the legitimacy of any banking service they use.
Above all, avoid participating in unauthorized banking transactions. Protect yourself and your finances by following legal and ethical banking practices.
For more: NRB Warning Illegal Bank Accounts
