Fiscal Nepal
First Business News Portal in English from Nepal
KATHMANDU: Nepal Rastra Bank (NRB) has announced that it will issue new financial market conduct guidelines and customer protection frameworks in the fiscal year 2082/83 (2025/26). The announcement came during the unveiling of the monetary policy by Governor Dr. Bishwanath Paudel on Friday.
As part of a broader reform to improve transparency, consumer protection, and operational efficiency in the banking and financial sector, NRB will introduce a “Financial Consumer Protection Guidance” along with market conduct directives to ensure ethical and responsible behavior among banks, financial institutions, and other financial service providers.
One-Time KYC, Accessible Across All Banks
In a major digital leap, NRB will also facilitate a system where Know Your Customer (KYC) data updated in one bank can be accessed by other authorized banks and institutions through electronic means, using the National ID card as a central identification mechanism.
Governor Paudel emphasized that this integration will significantly reduce redundancy in compliance processes, enhance customer experience, and improve access to financial services, particularly for digitally underserved populations.
“NRB with Borrowers” Program in Rural Areas
To strengthen communication with borrowers in rural and remote areas, NRB is set to launch a new initiative titled “NRB with Borrowers”, aimed at fostering continuous dialogue between borrowers and the central bank, ensuring accountability and resolving credit-related issues at the grassroots level.
Inactive Accounts and Risk Mitigation
Addressing the growing number of inactive bank accounts and the associated financial risks, the monetary policy outlines a plan to minimize dormant accounts, especially those being misused by unauthorized individuals. NRB will implement a detailed action plan to reduce inactive accounts and mitigate misuse in the banking system.
Furthermore, the central bank stressed the need for coordination with relevant government agencies to address risks arising from improper loan recovery, harassment of borrowers, and unethical practices by banks and financial institutions while following the legal debt collection process.
These new regulatory measures aim to strengthen financial inclusion, consumer rights, digital integration, and risk governance across Nepal’s evolving financial landscape.
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