Banks Must Operate 24/7 Services to Prevent Financial Crimes, Says Nepal Rastra Bank

According to a circular issued by Nepal Rastra Bank on Wednesday, banks and financial institutions are now required to ensure that bank accounts involved in financial crimes can be blocked at any time, 24 hours a day, seven days a week. The Cyber Bureau of Nepal Police has reported a rise in incidents where mobile banking accounts were hacked following the clicking of unauthorized links, resulting in financial losses. There has also been an increase in the fraudulent transfer of funds withdrawn from victims’ accounts to various other accounts. Nepal Rastra Bank officials state that the new circular aims to clarify and expedite the process for victims by clearly outlining where and whom to contact immediately to freeze compromised accounts.

The circular includes new directives designed to control financial crimes. It states, “Authorized institutions must arrange their operations to act continuously (24/7), enabling the temporary freezing of bank accounts linked to financial crimes upon verbal or written request from any investigating or law enforcement authority involved in suspected offenses.” Additionally, institutions are required to list contact numbers on their websites to facilitate such actions.

“Investigators or law enforcement authorities requesting information from authorized institutions must receive the requested details promptly,” the circular further instructs. According to Gurupasad Paudel, spokesperson for the central bank, the guidelines are issued to ensure a swift response against financial crimes. “Police, the Commission for the Investigation of Abuse of Authority, or other investigating and law enforcement agencies may request account freezes or information. Therefore, continuous readiness around the clock is essential,” he explained.

The Cyber Bureau spokesperson has welcomed the new directive from Nepal Rastra Bank, remarking, “Having a focal person’s contact number available 24/7 at banks would greatly support our operations,” said police superintendent Dilipkumar Giri. However, the central bank’s spokesperson also acknowledged that these measures are not yet complete. “Although this is an improvement over previous rules, more needs to be done to address the complexities arising from the rapid growth of digital transactions. We are planning to implement digital solutions,” he added.