Understanding Financial Products
by Khatapana
Aug 14, 2023 - 3 min read
Introduction:
For both residents and foreigners, opening a bank account in Nepal can be crucial for managing finances, receiving payments, and saving money. While the process is straightforward, having a clear understanding can simplify it even further. In this guide, we outline the step-by-step procedure and the essential documents you'll need to open your bank account in Nepal.
1. Decide the Type of Bank Account:
Before heading to the bank, it's essential to determine which type of account suits your needs:
- Savings Account: Suitable for everyday banking and earning interest on deposits.
- Current Account: Ideal for business transactions with no interest benefits.
- Fixed Deposits: A lump sum deposit with higher interest rates locked for a particular duration.
2. Choose the Right Bank:
Nepal has a mix of commercial banks, development banks, and finance companies. Your choice should factor in the bank's reputation, proximity, services, and interest rates. Currently, there are 20 Class "A" Commercial Banks licensed by the Nepal Rastra Bank, the central bank of Nepal. In addition, there are 17 Class "B" Development Banks, 17 Class "C" Finance Companies, 63 Class "D" Micro Finance Financial Institutions and 1 Infrastructure Bank. Here is a list of the 21 National Level Banks in Nepal as of August 2023:
1. Nepal Bank Ltd.
2. Agriculture Development Bank Ltd.
3. Nabil Bank Ltd.
4. Nepal Investment Mega Bank Ltd.
5. Standard Chartered Bank Nepal Ltd.
6. Himalayan Bank Ltd.
7. Nepal SBI Bank Ltd.
8. Everest Bank Ltd.
9. Kumari Bank Ltd.
10. Laxmi Sunrise Bank Ltd.
11. Citizens Bank International Ltd.
12. Prime Commercial Bank Ltd.
13. Sanima Bank Ltd.
14. Machhapuchhre Bank Ltd.
15. NIC Asia Bank Ltd.
16. Global IME Bank Ltd.
17. NMB Bank Ltd.
18. Prabhu Bank Ltd.
19. Siddhartha Bank Ltd.
20. Rastriya Banijya Bank Ltd.
3. Gather Necessary Documents:
Opening an account requires specific documents to verify your identity and address. Here's a checklist:
For Nepali Citizens:
- Citizenship Certificate/Passport/Driving License/Voter's ID (original and photocopy).
- Passport-sized photos.
- Proof of residence: Utility bill, rental agreement, or municipality certificate.
- PAN card (if available).
For Foreigners:
- Valid passport and a photocopy.
- Passport-sized photos.
- Valid visa showing Nepal entry.
- Proof of residence in Nepal.
Additional documents will be required for a business to open bank accounts.
4. Visit the Bank:
After gathering all documents, visit your chosen bank branch:
- Collect and fill out the bank's account opening form.
- Attach your photos and submit your documents for verification.
- Some banks might require a face-to-face interview or further documentation – ensure you have everything at hand.
5. Timeline:
If you have all the documentation in place, then it may take couple of hours to open your bank account. So, it is safer to allocate a day's time for opening a bank account. Some banks have also come up with online bank account opening options and are even using Viber for the same. Make sure to contact the specific bank branch in your locality to inquire more.
6. Deposit Initial Amount:
Most banks in Nepal will require an initial deposit. This amount varies between banks and the type of account you're opening.
7. Collect Your Banking Tools:
Once your account is approved:
- Collect your passbook, cheque book (if applicable), and ATM card.
- Ensure you receive internet banking credentials if you've opted for this service.
8. Stay Updated:
Banking regulations and requirements may change. Regularly check with your bank or their official website to stay updated.
Conclusion: Opening a bank account in Nepal is a straightforward process, especially when equipped with the right knowledge and documents. Whether you're a local entrepreneur, a foreign traveler, or someone looking to manage their finances better, having a bank account in the country can prove beneficial. Need help with opening a bank account in Nepal, download Khatapana app today and send us a service request.
