4.5 Million Bank Accounts Dormant in Nepal

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4.5 Million Bank Accounts Dormant in Nepal

March 15: Altogether 21,499 accounts are dormant with Nepal Bangladesh Bank with zero transaction since a decade. This is just a representative case of many such dormant accounts.

A total of 26 million accounts have been opened in various banks and financial institutions (BFIs) of Nepal till date. Out of them, 45,51,596 accounts have become dormant.

According to Nepal Rastra Bank (NRB), 17.48 percent of the total bank accounts are lying dormant in Nepal.

The government is planning to use the savings in such accounts which have remained dormant for more than two decades in development works.  The government has proposed nationalizing the amounts of 20-year-old dormant accounts in the third amendment to the Banks and Financial Institutions Act (BAFIA).

Prior to this, the amounts in such dormant accounts used to be transferred to the Banking Development Fund of the central bank.

To withdraw the amount after 20 years, the depositors need to show their identity cards and other credentials first.  In case the depositors come to claim the amount after 20 years when the amount has already transferred to the government’s development fund in the current context, the proposed bill has provision for the BFIs to release the amount and then claim it from the NRB. 

Finance Minister Yuba Raj Khatiwada has already presented the amendment proposal in the House of Representatives.

“The government intends to utilize the amount which have remained idle since many years,” said Khatiwada, adding that the depositors can claim the amount later if they can furnish proper evidences.

He also added that it is the responsibility of the government to protect the properties of the people and will make available the amount to the rightful owners as soon as they seek to withdraw the amount.

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