May 7: With the extension of lockdown, banks and financial institutions (BFIs) are encouraging customers to open savings and deposit accounts through online medium.

Though almost all the banks have been providing the online service, the BFIs have been promoting online banking as most customers are not able to use banking service physically.  

Nabil Bank had started online system for bank account opening for the first time eight years ago. “However, due to lockdown, now all the banks are focusing on online banking,” said Bhuwan Kumar Dahal, president of Bankers Association of Nepal. Especially Nabil Bank, NIC Asia Bank, Citizens Banks and NMB Bank have been promoting online banking.

Mostly, Nepali nationals in foreign countries used to apply online for opening account.  However, most Nepalis in the country preferred to go to bank to take any service. But, due to the lockdown most of the banks have been creating facilities so that people can open their accounts online.

Sanima Bank had brought the system around six years ago. But most customers did not use it. According to president Dahal, who is also the chairperson of Sanima Bank, only a handful of Nepalis in foreign countries had used the service before lockdown.

Now, the most effective medium is to open bank account from home. After all the process, the customer needs to come to the bank once.

“The customer can deposit money in the bank. But they need to come for identity confirmation once before releasing the money for the first time,” said Dahal. He said that this is an opportunity for the banks to go cashless. “Gradually, all the transactions need to be cashless,” he opined.

Citizens Bank International had also brought this service last week.  “The system was already there, but now we have upgraded it,” said Ganesh Raj Pokhrel, CEO of the bank. A year ago, around 100 Nepalis from abroad used the service every month, he said.

According to the bankers, opening account from bank is quick, secured and safe process.

Nepal Rastra Bank(NRB) has been focusing on the need of digital transaction and has been encouraging the banks to do so.

“As the new generation is more familiar about these concepts, they should start using it,” added Chnitamani Shiwakoti, deputy governor of NRB. “Also, banks should work on making the process convenient for customers.” Nevertheless, the market needs much time to go cashless to the full extent. “We cannot immediately switch to cashless system right now,” he said.