![\"\"](\"https:\/\/insurancekhabar.com\/wp-content\/uploads\/2026\/03\/nepal_unclaimed_deposits.png\")
<\/p>\nKathmandu. The government has recently announced an important economic policy, transferring money from bank accounts that have remained unclaimed for 10 years to the government treasury. This announcement has created a buzz not only in the legal and financial world, but also among the general consumer. <\/p>\n
The question is, is this decision in line with the current law? Does it have an international basis? And will the money that once goes to the government treasury be returned? In this article, we have tried to find simple answers to these questions. <\/p>\n
What is the current legal system? <\/p>\n
According to Section 112 of the Bank and Financial Institutions Act, 2073, the banks and financial institutions have to submit the details of the deposit accounts that have not been claimed for 10 years to the Nepal Rastra Bank within the first month of each fiscal year. Also, a public notice should be published in a national daily newspaper once in 5 years. If no claim is received even after 20 years, such amount will be deposited in the Banking Development Fund of Nepal Rastra Bank. <\/p>\n
According to the NRB’s regulation, if an account remains inactive for three consecutive years, it is called a non-operative account. As of now, there are about Rs 1.88 trillion in inactive accounts in the banking system. The NRB is still collecting details of the amount of the account that has been inactive for more than 10 years. <\/p>\n
According to the directive of the Nepal Rastra Bank, deposits that have not been claimed for more than 20 years are transferred to the Banking Development Fund. Even after that, if any legal heir comes, the concerned bank and financial institution should submit all the documents to the Rastra Bank and the Rastra Bank will return the amount. However, there is no interest during this period. <\/p>\n
What is the government’s new policy? <\/p>\n
The new policy proposes to transfer such money to the government treasury in just 10 years instead of waiting for 20 years. This change is not in line with the current legal system. Because the current system makes it mandatory to keep such money in the Banking Development Fund of the Rastra Bank. According to government data, more than Rs 167 billion has been deposited in the Banking Development Fund from inactive accounts of more than 20 years. <\/p>\n
<\/p>\n
What is international practice? <\/p>\n
If the Reserve Bank of India does not claim the account amount for 10 years, the amount is transferred to the Savers Education and Awareness Fund. The saver or his\/her legal heir can still approach the concerned bank and claim a refund along with the amount and applicable interest. <\/p>\n
Similarly, Indian insurance companies have to transfer unclaimed claims for more than 10 years to the Senior Citizens Welfare Fund. Even after the money is transferred to the fund, the heirs of the insured can claim their claims for 25 years. If the claim is not received within 25 years, then the money will go to the central government’s account permanently. <\/p>\n
Question on property rights: <\/p>\n
This announcement of the government has also raised questions related to the property rights of the citizens. Article 25 of the constitution has established the right to property as a fundamental right. Legal experts believe that the transfer of money to the government treasury without adequate public notice and assured provision of reclaiming could be within the bounds of this right. <\/p>\n
The new policy of the Government of Nepal should in principle be in line with international practice. The first thing the government should do before drawing money from the savings of the general public is to legally amend the existing Banks and Financial Institutions Act. Second, there should be extensive public notice and effective information before money is transferred to the government treasury. And third, the legal right of the real heirs and their legal heirs to claim the money through a clear and easy process should be ensured, even after the money has been transferred. Without this provision, this policy can hurt the property rights of the citizens. <\/p>\n
Do the heirs get it back after being transferred to the fund? <\/p>\n
According to the current system in Nepal, even after the money reaches the Banking Development Fund of the Nepal Rastra Bank, the rightful beneficiary can demand the money back by submitting the necessary evidence, but the interest is not paid during that period.<\/p>\n","protected":false},"excerpt":{"rendered":"
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