Bank accounts can now be frozen by licensed institutions without prior approval.

previously amended on Ashwin 29, the "Bank Account Freezing and Unfreezing Regulations, 2081" issued by Nepal Rastra Bank permit licensed institutions to freeze and unfreeze bank accounts without previously obtaining central bank clearance. This amendment replaces the previous requirement that licensed institutions obtain prior approval before freezing an account with notification to Nepal Rastra Bank.

In the past, licensed institutions had to get permission from Nepal Rastra Bank before they could freeze or unfreeze a person, business, firm, or institution's bank account. But according to the most recent modification, these institutions can now use their power to immediately freeze or unfreeze accounts in compliance with the applicable laws. They must nonetheless quickly notify Nepal Rastra Bank of any such activities in accordance with the regulation.

Moreover, the licensed institution may, after verification, temporarily freeze an account for a maximum of 48 hours if money have been inadvertently credited to it. In the event that the account needs to be kept frozen after this time, the institution must request additional authorization from Nepal Rastra Bank.

This regulation was first proposed on Ashwin 01 and went into effect on Bhadra 13 after being approved by the board of directors of the central bank. When it was first presented as a draft in Ashad, suggestions and comments from the general public were welcomed. Less than a month after the regulation went into force, the amendment was put into practice.