NRB Introduces New NID Rules for Digital Wallet Users

Nepal Rastra Bank (NRB) has issued new provisions regarding the use of the National Identity Card (NID) and National Identity Number (NIN) for opening and updating digital wallet accounts. Through a financial literacy message issued on Ashwin 6, 2083, the central bank instructed licensed payment service providers to verify customers’ details against the electronic records of the National Identity Card while opening wallet accounts. Payment service providers must also obtain a self-declaration from wallet users on whether they have obtained an NID. Such declarations must be collected through mobile applications or other appropriate channels by the end of Ashwin 2083. For Nepali citizens who already have an NID, payment service providers must update their National Identity Number (NIN) in the respective wallet account by the end of Ashwin 2083. Those who do not yet have an NID must update their identification details after obtaining one. NRB has also instructed payment service providers to establish a system to notify users every month through mobile applications or other suitable channels to update their identification details once they obtain an NID. For Nepali citizens living abroad, digital wallets can still be opened online even without an NID or NIN, provided they submit other required identification documents. However, after returning to Nepal, the concerned payment service provider must obtain and update their NID details within 35 days of their return. NRB has made additional provisions for persons unable to take care of themselves, persons with disabilities and helpless citizens. Such individuals may open and operate digital wallets by submitting other required documents instead of an NID or NIN, as permitted under the applicable rules. The new provisions are aimed at strengthening customer identification and verification in Nepal’s digital payment system, while allowing practical alternatives for users who do not yet have a National Identity Card.