The new government’s 100-point action plan on public administration reform includes a measure to transfer funds from dormant bank accounts to the state treasury. The spokesperson for Nepal Rastra Bank has stated that implementing this measure will require necessary legal amendments. The 78th point of the cabinet-approved action plan states: “To effectively utilize the state’s dormant resources, banks and financial institutions must collect details of accounts inactive for 10 years or more, and any unclaimed funds after completing legal procedures should be transferred to the state treasury. Additionally, other sources should be identified and managed, with this process to be completed within 90 days.”
Central bank officials report that there are “more than 10 million” such accounts, containing “billions of rupees.” Nepal, with a population of nearly 30 million, reportedly has over 60 million bank accounts, according to Nepal Rastra Bank.
Nepal Rastra Bank spokesperson Gurupraj Paudel emphasized that legal provisions must be added and amended to implement the government’s announcement, noting that the government is expected to propose such changes. Krishna Raj Acharya, an economics professor at Tribhuvan University, commented that while the proposal is theoretically sound, Nepal needs to consider its international financial commitments and established global practices.
“Furthermore, transferring individual savings to the state treasury is not a straightforward matter. The existing 20-year dormancy period is being reduced to 10 years, so further clarification is needed on this,” said Professor Acharya. However, he added, “This is a beneficial measure for a country like Nepal. For nations with weak economies, such small sources provide an effective means to mobilize resources.”
