Let us say you have been appointed for your dream job. Now, you will be earning your salary in coming days. For receiving your earned money, your organization certainly request you to open a Bank account. Also, if you want to save money, deposit money for earning interest or transact your business with accountability & transparency, then poof! Here comes the Bank account.
Step by Step procedure to open a Bank account
Then, let’s discuss how we are going to open a Bank account in any Banks of Nepal. The standard procedure, we must say! Let’s dig step by step:-
You must enter a Bank’s door! Kidding! Banker will give you a form which is termed as “Account Opening Form(AOF)” which list out every your personal and work details.
You should fill each and every details which is relevant for a Banks to know you and transactions you are going to do at your bank account. (Discussed Later). You also have to fill out some declarations about U.S. Residency, Criminal charge, Green card, Accuracy of information filled, etc.
If you want to obtain Debit card, Mobile Banking & Internet Banking also, then you have to tick on yes check box & fill your mobile number/ Email ID or other information required. Yes! No separate forms are required to be filled.
Now, you have to give a copy of your Identification details, if you are Individual. But If you are entity, you should provide Registration Documents, PAN certificates and other relevant documents which is discussed later. Also sign & paste your photo wherever required.
Don’t worry about more steps as this step is not for you. It is for Banks. Authorized personnel in Bank shall verify details you filled out and cross verify your photocopied documents with original & stamp it. After verifying, they fill out some details on behalf of banks & process for account opening.
Here you go, Your Bank account is opened. Now, you will be a bank account holder. Isn’t this easy?
Now, let’s discuss the information you have to give to Bank while opening a Bank account which we said to be discussed later at Step 2. Remember! Here we go!
- For Individual
|1||Nature of account you want to open||Eg: Saving/current/call/Joint/Single, etc|
|2||Full Name in Block letters||Both in English and nepali|
|3||Date of Birth||Both in Nepali and English|
|6||Citizenship Number along with date & place of issue||Compulsory for Nepali Citizen|
|7||Passport Number along with date & place of issue||Not compulsory for Nepali Citizen|
|8||Full Current Address||Ward no. is compulsory|
|9||Full Permanent Address||Ward no. is compulsory|
|10||Family Details||Mother Name, Father Name & Grandfather Name are compulsory to provide at many banks.|
|11||Location Map||Should be clear|
|12||Details of Income Source||Name, Address, Contact No., Designation & Annual Salary/ Annual Income of organization where income is generated should be provided.|
|13||College details||If only, you are student.|
|14||Purpose of Account|
|15||Estimated monthly Transaction|
|16||Estimated Annual Transaction|
|17||Maximum amount per transaction|
|18||Other Bank account details||If you already have account in other banks.|
|19||Beneficial Owner||If ultimate owner of your account is other person than you, mention such person. Eg: If your account is mostly used by your brother. Your brother deposit and withdraw amount for his purpose mostly, then your brother is beneficial owner of your account.|
|20||Nomination||In case of your death, the amount in your account should be received by who? Fill details of that person.|
- For Entity
|1||Full Name in Block letters|
|2||Constitution||Whether entity is Private ltd, Public ltd, private firm, etc|
|3||Registration details||Registration Number, Date & Authority|
|4||PAN details||PAN number and issue Date|
|5||Registered Address||Ward no. is compulsory|
|6||Current Address||Ward no. is compulsory|
|7||Key contact official details||Name & number of such person|
|8||Nature of account|
|9||Area of Operation|
|10||Nature of Business||Business specified at PAN/VAT is preferred.|
|11||Purpose of account|
|12||Estimated monthly Transaction|
|13||Estimated annual transaction|
|14||Maximum Amount per Transaction|
|16||Details of Signatories||Details of person who is authorize to sign in any bank instruments|
|17||Details of Board Members||Specify even when they are signatories|
|18||Other Bank Details|
|19||Details of Signatories, Directors & other key persons||But separate form required to be filled for each individual.|
Ugh! Big list!!
Anyway, let’s move to documents required to be submitted while opening Bank Account.
- For Individuals:
Only Identification documents is required.
- Any one of ID can be given by Nepali citizen
- Voter ID
- Driving License
- For Minor
- Birth Certificate
- Any one ID specified above of Guardian
III. For Indian National
- If such person do not have Passport, any ID certifying he is Indian
- For foreign National
- If employee, reference letter from employer
- For refugee
- Refugee card
- For Entity
Here, we enlist those document which are common to entity.
- Registration document
- PAN/Vat certificate
- Latest Audited Financial statement, if audit provision is applicable
- Latest Tax clearance certificate
- Partnership Deed for partnership firm
- Letter of Authority
- Memorandum of Association for company
- Article of Association for company
- Board Meeting Minute for opening of account
- Bidhan for club, NGO, guthi & society
Apart from above listed documents, banks may ask for other required document according to their need.
If you want to know about AML/CFT , read here https://camunchnepal.com/articles/finance/aml-cft-in-banks-of-nepal-context/
If you want to know original provisions, read Unified Directive here https://bfr.nrb.org.np/bfrdirectives.php