Surge in Dormant Account Reactivation After Government Plan to Transfer Funds to State Treasury

In Kathmandu, following the government’s plan to transfer funds from bank accounts that have remained inactive for 10 years or more into the state treasury, there has been a surge of people visiting banks to reactivate their dormant accounts. Bank officials report a significant increase in daily customer visits, while Nepalis living abroad are also making inquiries about their account status. According to Nepal Rastra Bank, dormant accounts currently hold around NPR 188 billion, with an estimated NPR 20 billion inactive for over a decade. Under existing laws, such accounts are reported to the central bank after 10 years and transferred to the Banking Development Fund if unclaimed for 20 years. However, the government’s recent decision has prompted account holders to take action. Still, implementing this policy would require amendments to existing banking laws.