Kathmandu, April 26: Nepal has identified around 4.4 million dormant bank accounts holding Rs 20.65 billion as part of a government push to manage idle financial resources and strengthen governance reforms.
The move follows the government’s 100-point reform agenda, which proposed collecting details of accounts inactive for over 10 years and transferring unclaimed deposits to the state treasury after legal clearance. The plan set a three-month deadline, of which about two months remain.
Nepal Rastra Bank (NRB) has already compiled data from commercial banks, development banks, and finance companies. NRB spokesperson Guru Prasad Paudel said commercial banks dominate both the number of dormant accounts and total deposits, while other financial institutions hold a smaller share.
Under the Bank and Financial Institutions Act, 2073, deposits unclaimed for over 20 years are transferred to the Banking Development Fund. Current data shows this fund holds Rs 1.60 billion from such long-inactive accounts. Funds can still be reclaimed if account holders later present valid proof.
The government’s proposal goes further, aiming to bring 10-year inactive accounts under state management. However, NRB officials say this cannot proceed without legal amendments. Existing law requires banks to report dormant accounts annually and publish claim notices every five years in national newspapers, while also updating details on their websites. Compliance, however, remains inconsistent.
Dormant accounts are generally defined as those with no transactions for one to two years or more. Banks may freeze them for security, but funds remain safe and can be reactivated through KYC updates and identification.
NRB policy classifies savings accounts inactive for over three years and current accounts inactive for over one year as dormant. Officials stress that while the reform could unlock significant idle funds, it must first pass through proper legal revision before implementation moves forward.
People’s News Monitoring Service
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