How to open a bank account in Nepal as a person holding NRN Citizenship

Introduction

A bank account helps you to perform financial activities worldwide. Person carrying national citizenship can easily make a bank account in Nepal, but one not having citizenship may have several problems while opening a bank account in Nepal. You can either open a bank account in a commercial bank, or development bank of Nepal. All these banks are regulated by the Nepal Rastra Bank (NRB).

What is a bank account?

A bank account is generally a financial account maintained by bank or any other financial institution in which financial transaction of debiting and crediting of money is take place It may be transferred between the same bank as well as from the different banks. Every financial institution has different terms and condition for opening and operation of bank accounts.

Types of bank account in Nepal

Some of the types of bank accounts are as follows:

Saving account

• A saving account is a genuine and basic bank account where one can deposit money to earn certain amount of interest.
• This type of account provides easy access to funs, a moderate ratio of interest rate and help one save money.

Current account

•  A current account is primarily used by businesses and corporation who deal with large numbers of financial transaction in daily basis.
• It allows unlimited deposits with withdrawals but usually offers no interest or vey low amount of interest.

Fixed deposit account

•  A fixed deposit account is when you deposit a lump sum of money for a fixed period (like 6 months, 1 year, etc.) at a higher interest rate than a savings account.
• You cannot withdraw before maturity without a penalty.

Salary account

• A salary account is opened by employers to deposit employees' salaries directly into their bank accounts.
• It works like a savings account but usually has no minimum balance requirement.
• It often comes with extra benefits like free debit cards, low-interest personal loans, etc.

CD accounts (certificate of deposit)

• CD accounts are similar to fixed deposits but are more common in the U.S.
• You deposit a sum for a fixed term (like 6 months, 1 year) and get a guaranteed higher interest rate.
• Early withdrawal before the term ends results in penalties.

Checking accounts

• A checking account (mostly used in the U.S.) is similar to a current account.
• It is used for daily transactions like paying bills, shopping, and withdrawing cash.
• It usually doesn't offer interest but gives maximum liquidity (easy access to money).

NRN account

• An NRN account is designed for Non-Resident Nepalis (people of Nepali origin living abroad).
• It allows them to hold and manage their money in Nepal.
•   They can maintain either a savings, fixed deposit, or current account, and the money can be in Nepali currency or foreign currency like USD.

Laws guiding NRN bank account

How to open a NRN bank account?

Choosing a bank

One must keep in mind while opening NRN bank account that they can open bank account in commercial and development banks. The list of banks that offer NRN banking services are:

Collecting required documents

• Typically, banks ask for the following:
• Copy of valid NRN Identity Card (issued by Nepal’s Ministry of Foreign Affairs).or NRN citizenship.
• Copy of passport (Nepali or foreign) with visa/residence permit.
• Proof of current residence abroad (like a utility bill, bank statement, or resident card).
• Recent passport-size photographs.
• Completed account opening form provided by the bank.
• For companies: Business registration documents if opening under a business name.
• Note: Some banks may also ask for a tax declaration or a self-declaration letter stating the source of income.

Selecting type of bank account

•  Choose whether you want to open:
• NRN Savings Account (for personal savings)
• NRN Current Account (for businesses or frequent transactions)
• NRN Fixed Deposit Account (for investment)
• Choose the currency: NPR, USD, EUR, GBP, AUD, etc.

Application Submission

• Visit the bank personally if you are in Nepal.
• If abroad, many banks allow online application or account opening via their representative offices or authorized agents.

Deposit initial Amount

•   Some banks may require a minimum initial deposit, depending on the type of account.
• The amount can usually be transferred through wire transfer (SWIFT) or deposited directly if you are present.

6. Verification and Approval

• The bank will verify your documents and identity.
• This may take a few working days.
• Upon successful verification, the account will be activated.

7. Access and Operate Account

• You will receive:
  • Account Number
  • Online Banking details (Internet/Mobile banking access)
  • Debit Card (optional in some cases)
• You can start operating the account — sending remittances, making investments, saving money, etc.

Types of NRN bank account

What is the KYC compliance for NRN bank account opening in Nepal

To open a Non-Resident Nepali (NRN) bank account in Nepal, compliance with Know Your Customer (KYC) regulations is essential. These requirements are established by Nepal Rastra Bank (NRB) and implemented by individual banks to ensure transparency, prevent money laundering, and verify the identity of account holders.

KYC Compliance Requirements for NRN Bank Account Opening

While specific requirements may vary slightly between banks, the following documents and procedures are commonly required:

1. Personal Identification Documents

• Valid Passport: A certified copy of your current passport (Nepali or foreign) is mandatory.
• NRN Identity Card: Issued by the Government of Nepal or authorized NRN associations.
• Passport-Sized Photograph: Recent photographs are typically required. (

2. Proof of Address

• Foreign Residence Proof: Documents such as utility bills, lease agreements, or bank statements from your country of residence.
• Nepal Address: If applicable, provide a local address in Nepal.

3. Source of Income

• Income Verification: Documents evidencing the source of income, such as employment letters, salary slips, or business registration certificates.
• Remittance Declaration: For accounts intended for remittance purposes, a declaration form may be required.

4. Bank-Specific Forms

• Account Opening Form: Fully completed and signed.
• Signature Specimen: A clear sample of your signature for verification purposes.
• Repatriation Form: If you intend to repatriate funds, this form outlines the details and terms.

5. Verification Process

• In-Person Verification: Visiting a branch in Nepal for identity verification.
• Video KYC: Some banks offer video conferencing options for remote verification.
• Third-Party Verification: Verification through embassies or authorized remittance partners.

 Additional Considerations

• Minors: Accounts for minors require guardianship documents and proof of relationship.
• Joint Accounts: If opening a joint account, identification documents for all parties are necessary.
• Foreign Currency Accounts: For accounts in foreign currencies, additional documentation regarding the source of foreign income may be required.