Wednesday, April 10, 2019

Banks to give Rs 100 for opening account

The banks are providing a customer Rs 100 if they open an account in the bank.
To increase the financial transaction through the banks and financial institutions, under the government scheme of ''Lets Open Bank Account Campaign, 2076' for opening bank accounts for all Nepalis. The government is launching the campaign from Baishakh 1, 2076 (April 14, 2019).
The central bank has also simplified the process of opening bank account as part of its effort to help the government in increasing people's access to finance. The new rule introduced by the central bank not only requires bank and financial institutions (BFIs) to use simplified know-your-customer (KYC) form under 'Lets Open Bank Account Campaign, 2076', but also paves the legal way for allowing them to deposit Rs 100 on those accounts from the bank's side, according to a circular of the central bank. The banks can count Rs 100 deposited in accounts opened under this campaign as their corporate social responsibility (CSR) expenses.
BFIs are required to spend at least one per cent of their total net profit in CSR activities. The central bank has also prescribed a list of activities – including activities organised to achieve Sustainable Development Goals (SDGs) and direct donation to education and health for poor families – where CSR fund can be utilized.
Under the new rule, people can now open bank accounts by filling up a simplified KYC form and enclosing a copy of government-issued identity cards along with their photographs.  However, the limit for annual transaction for accounts opened using the simplified KYC form has been set at Rs 100,000. "If the transaction is higher than that, the bank should make the client fill up the full KYC form," according to the central bank.
The campaign was announced through the budget for the current fiscal year 2018-19 with an aim to increase financial access and inclusion in the country.
The new provision is aimed at encouraging banks to help the government in its campaign to bring all people within the ambit of banking sector and also to formalise the economy.
Currently, there are 23.54 million deposit accounts as of mid-July last year, according to the central bank data. Lately the central bank has been offering various incentives and facilities to BFIs for deepening financial penetration. The central bank has also directed the BFIs to reach out to all 753 local units.

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