Nepal Tightens E-Wallet Rules with National ID Mandate, But Expats Get a Break

Nepal Rastra Bank is putting digital wallet compliance front and center, with a new directive that makes National Identity Cards a key requirement for opening and operating e-wallets in Nepal. Payment service providers will also have to verify National ID data through electronic records and update existing users' details by mid-October 2026.

The move is part of NRB's broader push to tighten customer identification and strengthen anti-money laundering controls across the digital payments ecosystem. In practice, it means wallet providers will need cleaner records, stronger verification systems, and more active KYC management for both new and existing users.

What the new rule changes

Under the directive, e-wallet providers must use the National ID system to confirm user identity before approving wallet access and related services. The requirement applies to opening and operating wallets, and PSPs are expected to cross-check electronic National ID records rather than relying only on manual document review.

NRB has also set a deadline for updating current customer records. Existing users must have their details brought into compliance by mid-October 2026, which gives wallet operators a limited window to contact users and complete the necessary verification steps.

Who gets an exception

The policy is not absolute. Nepalis living abroad can still open wallets using other valid documents if they do not have a National ID number, preserving access for people who may not yet be able to obtain or use the card from overseas.

This exception is important because it shows NRB is trying to balance stricter compliance with practical access. For migrant workers and other Nepalis outside the country, the rule would otherwise create a major barrier to using digital financial services.

Why NRB is doing this

The central bank's likely goal is to reduce fraud, improve traceability, and make it harder for bad actors to misuse e-wallets. Digital wallets have become a major part of Nepal's payments landscape, which makes them a natural target for stronger know-your-customer checks.

By requiring verified identity records, NRB is signaling that digital payments are no longer treated as a lightweight consumer convenience. They are now being regulated more like a core part of the financial system, with tighter documentation and stronger oversight.

What users should expect next

For wallet users, the most immediate change will be verification requests from payment providers. Users should expect prompts to update identity details, submit matching documents, or confirm National ID information through approved channels.

For PSPs, the operational burden will be heavier. They will need systems that can authenticate records electronically, manage customer data updates at scale, and handle users who do not yet have a National ID number under the permitted exceptions.

In short, Nepal's e-wallet sector is entering a stricter compliance era, with National ID verification becoming a central part of how digital money is accessed and managed.