NRB allows election candidates to open two similar bank accounts for parliamentary polls

KATHMANDU: Nepal Rastra Bank (NRB) has allowed candidates contesting the upcoming House of Representatives election to open two bank accounts of the same nature for election-related transactions, providing regulatory flexibility aimed at facilitating transparent campaign financing.

The provision has been introduced specifically for candidates participating in the parliamentary election scheduled for 21 Falgun.

According to the central bank, the arrangement has been made at the request of the Election Commission of Nepal, enabling banks and financial institutions to open election-specific accounts in the name of candidates and political parties.

These accounts will be used exclusively for managing income and expenditure related to election campaigns in Nepali currency.

NRB clarified that while the accounts are opened for election purposes, they will remain operational until the Election Commission formally decides to close them following the completion of the election process.

Banks will be required to maintain these accounts until they receive an official directive from the Election Commission to close them, ensuring continuity and traceability of campaign-related financial transactions.

As per existing election finance rules, every political party and each candidate representing a party, including those contesting under the proportional representation system, must operate a separate bank account dedicated to election campaign transactions.

These accounts are opened under the “general election campaign group” and are meant to record all income and expenditure incurred during the election period. Recommendations from provincial and district election offices are mandatory for opening such accounts.

To operationalize this requirement, NRB has provided regulatory facilitation by allowing banks to open two accounts of the same nature in the name of a single natural person for election purposes.

This marks a deviation from the general banking rule that restricts individuals from holding more than one account of the same type in domestic currency.

The exemption has been incorporated into the Unified Directive 2082 issued to banks and financial institutions.

Specifically, Directive No. 21, Clause No. 45, which ordinarily prohibits banks from opening more than one account of the same nature in Nepali currency in the name of a natural person, has been relaxed for election-related accounts.

NRB stated that this exemption will remain valid until the Election Commission issues a formal decision instructing the closure of such accounts.

Central bank officials emphasized that the move is intended to support compliance with election finance laws without disrupting standard banking regulations.

By allowing two similar accounts—one personal and one election-specific—candidates can segregate campaign finances from personal transactions, thereby improving transparency, auditability, and regulatory oversight.

Banks and financial institutions have been instructed to strictly ensure that the election-related accounts are used only for campaign income and expenditure, in line with the Election Commission’s guidelines. Any transactions outside the defined election purpose could invite regulatory scrutiny and penalties under prevailing laws.

The decision comes amid heightened focus on election financing discipline, as regulators and election authorities seek to strengthen financial transparency and prevent misuse of funds during election campaigns.

NRB’s facilitation is expected to ease operational challenges faced by candidates while maintaining the integrity of the financial system.

With the parliamentary election approaching, banks are preparing to coordinate closely with election offices and candidates to implement the directive effectively.

NRB has reiterated that all other provisions related to customer due diligence, reporting requirements, and anti-money laundering compliance will remain fully applicable to these accounts, notwithstanding the temporary exemption on multiple account restrictions.