General FAQs on Opening a Bank Account in Nepal

 

Who can Open a Bank Account?

Any individual or a group of individuals or a company/institution holding a valid ID as per the bank’s requirement can open an account.

Where do I go to Open an Account?

You may visit any of Bank’s Branches nearest to your locality to open the account.

What are the Applicable Fees & Charges While Maintaining an Account?

To open an account, one has to maintain the minimum balance required as per the Account Type (zero-balance accounts are also available). No additional charges besides this will be levied.

Can My Friend Open an Account for Me?

No, one has to visit the branch personally to open an account.

However, for company account the authorized agent can open an account on behalf of the company.

Can I Transfer My Account From One Branch to Another?

Yes, you can transfer your account from one branch to another. No charges will be levied for such transfers.

Can I Authorize Someone Else to Operate My Account on My Behalf?

Yes, you can authorize someone else to operate your account. Such authorized person’s are called ‘Mandatee’. Once the Mandatee is appointed, he/she will be fully authorized to carry out all the debit/credit transactions from the respective account holder’s account.

Who Can Acquire the Internet Banking Services?

Any customer maintaining bank account  can acquire Internet Banking Service

What are the Required Documents to Open a Local Currency (LCY) Savings Account?

Ans: a. For Nepalese   

• Identification Certificate
• Citizenship/Passport/Voters ID/In case of government employee, employee ID card  Two recent passport size color photographs  

Note: If the present address of the customer matches with the one recorded in the ID document, secondary document is not mandatory. However, the secondary document is mandatorily required in cases where the address in the said document varies. 

The following documents evidencing the present address of the customer to be submitted as a secondary document (Any one) 

• Utility bills - Electricity/Water/telephone
•  Land Ownership certificate
• Permanent Account Number (PAN)
• Driving License 

b. For Indian Nationals 

• Registration Certificate from the Indian Embassy/Passport (Any one)
• Two recent passport size color photographs
• Details of present address in Nepal along with the utility bills such as electricity/water/telephone
• If employed, recommendation letter from the related organization  

c. For Foreign Nationals

• Passport with valid visa 
•  Two recent passport size color photographs
• Details of present address in Nepal along with the utility bills such as electricity/water/telephone
• If employed, recommendation letter from the related organization  

Note:  FCY license/visa validity to be inputted in Bank's system by the concerned Customer Service Executive and upon the expiry of visa, the account will be blocked automatically. Customers should be informed regarding the status and only after receiving the copy of renewed visa, the account shall be activated. 

Who Can Open Foreign Currency (FCY) Savings Account and What are the Required Documents to Open FCY Account?

Ans: A FCY Account is operated in Foreign Currency i.e. USD/EUR/GBP/AUD/JPY/CHF. The customers holding following documents are eligible to open a FCY Savings Account: 

a. For Nepalese Citizens:

Besides the documents required to open an LCY account, additional documents that provide evidence of FCY income source such as Contract Paper with the employer, employee ID card with bank statement should be submitted. 

Note: Customers who avail foreign currency exchange facility against passport are also eligible to open an FCY Account with maximum deposit of $1500. 

b. For Foreign Nationals 

• Passport with valid visa 
• Two recent passport size color photographs
• Details of present address in Nepal along with the utility bills such as electricity/water/telephone
• If employed, recommendation letter from the related organization 

Can a Minor Open an Account?

Ans: The children below the age of 16 years are considered to be a Minor. A minor can open an account with HBL. However, the account shall be operated by the legal guardian (Mother/Father or person legally recommended by the concerned government authority) of the minor. Once the minor becomes and adult and subsequently holds the citizenship certificate, following procedure needs to be carried out to operate the account independently:  

• New set of Account Opening Form to be filled by the customer
• Identification Certificate – Citizenship/Passport
• Two recent passport size color photographs 

The following documents evidencing the present address of the customer to be submitted as a secondary document (Any one)

• Utility bills
• Electricity/Water/telephone
• Land Ownership certificate
•  Permanent Account Number (PAN)
• Driving License
• Maintain minimum balance as per the respective account type 

Note: In case where the secondary documents are already present in the file, it is not required to re submit the same. 

To Open an Account, It is Sufficient to Provide Citizenship Document, then Why do We Ask for Secondary Documents such as Utility bills: electricity bill, water bill, Telephone bill etc. Along With the Citizenship?

Ans: The secondary document is required for address verification. If the present address of the customer matches with the one recorded in the ID document, the above listed documents are not mandatory.  

What can be done if the Customer has all the Required Documents Except the Utility Bill for Account Opening?

Ans: This situation frequently arises and can be handled in the following manner:

• It is important that the staff member informs the customer about the same in a clear and concise manner 
• In cases where the customer can submit the said document within 2 – 3 days, we can initiate the process to open the account. However, instruments like Cheque Book and Debit Card shall be handed over to the customer once he/she submits all the required documents. 
• Customer Service Executive shall maintain the list of such customers and ensure regular follow up is carried out to acquire the pending documents 

What is the Percentage of Tax Deducted from an Interest Earned?

Ans: 5% of Tax Deduction at Source (TDS) is applicable to the interest earned only. The deduction is not applicable to the principle amount. 

Who is a Mandatee? Define the Role of a Mandatee.

Ans: A mandate is an authorized person who is appointed by the account holder to operate his/her account on behalf of him/her. Mandate will be fully authorized to do all the day to day transactions on behalf of the account holder except account closing. 

Things to be remembered while appointing a Mandatee: 

• Both account holder and the appointed mandatee shall be self present for Mandatee appointment procedures
• Illiterate person (thumb print) cannot appoint his/her mandatee
• Mandatee cannot receive/apply for the Debit card on behalf of the account holder. Debit cards can be issued only to the account holders. However, if any account holder has provided a separate mandate for the issuance of debit card to its agent , the same may be issued

Can Mandate be Appointed for Any Type of Account?

Ans: Mandate can be appointed only for Personal Savings Account, Proprietorship Account and Partnership Account. However, an account holder who is illiterate cannot appoint a mandate. 

How Many Mandatee Can an Account Holder Appoint?

Ans: Mandate shall always be a single person and if the account holder wants to change his/her mandatee, the previous mandatee shall be replaced. 

Can Anyone be Appointed as a Mandate?

Ans: Legal heirs are preferred while appointing a mandatee. However, for exceptional cases, obtain valid reason from the account holder.

Can an Account Holder Residing Outside Nepal Appoint a Mandatee?

Ans: In case if the account holder is residing outside Nepal, he/she can place the request through our Representative Officer (if available).  

Who is a Nominee? Is Nominee, Mandatory to Open an Account?

Ans: A nominee is a person appointed by the account holder who will be heir for account holder’s remaining bank balance after his/her demise. 

Appointing a nominee is optional. However, it is preferred to have a Nominee documents.