Nepal Rastra Bank Introduces National ID Requirements for Digital Wallet Accounts

Nepal Rastra Bank (NRB) has issued new provisions concerning the use of the National Identity Card (NID) for opening and updating digital wallet accounts. The central bank issued the financial literacy message on Ashwin 6, 2083, outlining requirements that licensed payment service providers must follow while verifying the identity of wallet users. According to NRB, licensed payment service providers must open wallet accounts after verifying the customer's details against the electronic records of the National Identity Card. Payment service providers are also required to obtain a self-declaration from wallet users regarding whether they have obtained a National Identity Card. The self-declaration must be collected through the mobile application or other appropriate means by the end of Ashwin 2083. For Nepali citizens who have already obtained a National Identity Card, payment service providers must update the National Identity Number (NIN) of the respective wallet users by the end of Ashwin 2083. The provision is aimed at ensuring that wallet users' identification details are properly updated and verified in accordance with the central bank's requirements. Nepali citizens who have not yet obtained a National Identity Card will also be required to update their customer identification details after obtaining the card. NRB has instructed licensed payment service providers to establish a system to notify such wallet users every month through their mobile applications or other appropriate channels to update their customer identification after obtaining a National Identity Card. Nepali citizens residing abroad will be able to open electronic wallets online while remaining overseas even if they do not have a National Identity Card or National Identity Number. However, they will be required to submit other necessary identification documents prescribed for opening the wallet. Once such a wallet user returns to Nepal, the concerned licensed payment service provider must obtain and update the user's National Identity Card details within 35 days of their return to Nepal. NRB has also made a special provision for citizens who are unable to take care of themselves, persons with disabilities, and helpless citizens. Such individuals may open and operate digital wallets by submitting necessary documents other than a National Identity Card or National Identity Number, as permitted under the applicable requirements. The new provisions are part of NRB's efforts to strengthen customer identification and verification procedures in the digital payment ecosystem while providing practical alternatives for users who may not yet have access to a National Identity Card.