KATHMANDU: Bank customers will no longer need to repeatedly update their Know Your Customer (KYC) information at every financial institution.

The Nepal Rastra Bank (NRB), in its monetary policy for the upcoming fiscal year 2082/83 (2025/26), has introduced a provision to simplify KYC updates.

Banks, financial institutions, and other financial service providers will now be able to access customers’ KYC information through the National ID system.

Previously, customers were required to submit separate KYC forms for each bank they had accounts with, leading to widespread complaints. Responding to this, NRB has initiated reforms to ease the process.

According to the monetary policy, once a customer updates their information with any one bank, other authorized institutions will be able to access it electronically through a centralized infrastructure.

If any bank or financial institution requires a customer’s KYC data, they can now retrieve it directly via the National ID system.

The policy states: “Customer identification (KYC) details of banks, financial institutions, and other financial service providers will be facilitated through the National Identity Card. Once a customer updates their information in one bank, the necessary institutions will be able to access it electronically.”

Additionally, customers will be assigned a unique identification number once they submit their KYC details under the new system.

Any financial institution requiring a customer’s personal data for verification can retrieve it using this ID number through the centralized KYC system, according to NRB.