NIC ASIA Bank Requests Customers to Update PAN and Email Address for Seamless Tax and Communication Services

12th November 2025, Kathmandu

NIC ASIA Bank has issued a critical public notice urging its customers to promptly update their Permanent Account Number (PAN) and email details.

PAN and Email Address Update

This is not merely an administrative request but a mandatory move for the bank to maintain a compliant and dynamic banking system, directly aligning with Nepal’s national tax regulations, particularly the Income Tax Act, 2058. The bank’s proactive stance aims to prevent future tax-related complications for its customers by ensuring seamless integration with the government’s digital tax infrastructure. This dual update, PAN for legal compliance and email for communication, is a key step towards modernizing the customer experience and ensuring regulatory adherence in the digital age.

The Mandatory Requirement of Permanent Account Number (PAN)

The cornerstone of this initiative is the Permanent Account Number update, which is legally compulsory under the Income Tax Act, 2058. The PAN serves as a unique, permanent identifier for every taxpayer in Nepal. By linking all bank account activities to this number, the government’s Inland Revenue Department (IRD) can accurately track tax deductions made from investment income, such as interest earned on savings.

The crucial role of the PAN in banking transactions revolves around the concept of Tax Deducted at Source (TDS), which is the tax deducted by the bank on interest payments before the amount is credited to the customer’s account.

PAN Update for Seamless Tax Reporting

The bank highlighted that an updated PAN is essential for ensuring customers’ interest income tax details are properly recorded in the electronic Tax Deducted at Source (E-TDS) system. This system is the digital backbone for tax reporting. Once a customer’s PAN is successfully updated in the bank’s records, a series of beneficial, automated processes are triggered:

Automated Tax Matching: The tax deduction details (E-TDS) will be automatically matched in Schedule 10 of the national income tax system. This automatic reconciliation is the essence of why the update is critical, as it ensures the customer’s tax records are correct and up to date without manual intervention.

Simplified Certification: Customers can then easily obtain their tax deduction and tax clearance certificates. This eliminates the need for the customer to visit the bank in person for these routine documents, streamlining the process and saving valuable time. This convenience is a significant advantage of a digitized, compliant system.

Legal Compliance Assurance: The bank fulfills its legal obligation to withhold and report tax deductions accurately, thereby enhancing the overall compliance and transparency of the financial sector.

Implications of Non-Compliance

The public notice includes a firm warning about the repercussions of failing to update the PAN. NIC ASIA Bank explicitly stated that it will not be held responsible for any discrepancies if a customer’s failure to update their PAN results in their interest tax details not being included in the E-TDS record, or if manual adjustments are required later. The implication here is significant: a customer without an updated PAN may face complications with the IRD regarding their tax filings, potentially leading to delays in obtaining tax clearance or requiring tedious manual intervention to reconcile their tax accounts. Essentially, while the bank handles the deduction, the ultimate responsibility for ensuring the correct PAN is linked for accurate tax reporting rests with the account holder.

Enhancing Digital Communication through Email Update

In addition to the tax compliance mandate, the bank is also pushing for customers to update their email addresses. This is a strategic move to ensure seamless digital communication, reflecting the banking industry’s broader shift toward technology-driven services. A current and verified email address is vital for several essential banking functions and customer services:

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Digital Statements and Alerts: Banks use email to send monthly or quarterly account statements, transaction alerts, and other important service updates, reducing reliance on physical mail.

Security and Verification: Email addresses are often a critical component of multi-factor authentication and for sending password reset links and security notifications, enhancing the security of the customer’s digital banking profile.

Access to New Services: Timely updates on new products, changes in policy, or special offers are often communicated via email, ensuring customers are well-informed.

Multiple Update Channels for Customer Convenience

Recognizing the large customer base and the urgency of the matter, NIC ASIA Bank has created multiple channels to make the update process as easy as possible for its customers. The options provide flexibility, catering to both the digitally savvy and those who prefer in-person assistance:

Digital Portal: Customers can use the dedicated bank portal panupdate.nicasiabank.com for quick and direct PAN updates.

Mobile Application: The NIC ASIA MoBank mobile app offers a dedicated “PAN Update” option, integrating the function into the customer’s existing digital banking routine.

Video KYC and MoBank App for Email: For email updates, the Video KYC portal or the My Profile – Change Email option in the MoBank app are available.

Branch Network: Any NIC ASIA Bank branch nationwide is equipped to accept in-person applications for both PAN and email updates, providing a reliable fall-back for customers who may encounter technical difficulties or lack digital access.

This dual effort by NIC ASIA Bank is a prime example of a financial institution navigating the twin demands of regulatory compliance and digital transformation. It ensures that while the bank adheres to the stringent requirements of the Income Tax Act, it also leverages technology to improve service efficiency and communication with its valued customer base. The best banking is the kind that keeps the taxman happy and keeps you informed, all without requiring a trip to the branch.

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