KATHMANDU: Nepal Rastra Bank (NRB) has directed banks and financial institutions (BFIs) to prepare an action plan to reduce the number of dormant accounts and implement it by mid-January 2027.

The Department of Bank and Financial Institution Regulation of the central bank issued this directive on Friday to ‘A’ class commercial banks, ‘B’ class development banks, and ‘C’ class finance companies by amending and revising the Unified Directives.

According to the amended directive, BFIs must regularly inform the respective customers via phone, SMS, email, or other means before any account becomes dormant.

Similarly, they are required to contact customers via phone, SMS, or email at least every six months to request the reactivation of dormant accounts and maintain a secure record of such communications.

The central bank has also directed BFIs to establish provisions allowing customers to easily close their accounts from any branch across Nepal or through mobile and web applications.

If a customer requests to close their account—either by visiting a branch or via mobile/web applications—the directive mandates that the remaining balance in that account must be transferred to the customer’s own account at another designated bank or financial institution, and the account must be closed accordingly.

Furthermore, NRB has instructed BFIs to arrange for dormant accounts to be reactivated from any branch across Nepal, provided the customer’s identity is verified.

Additionally, banks and financial institutions have been directed to develop an effective system to monitor unusual transactions in reactivated accounts.