NRB Mandates Separate Accounts for Election Campaigning

The central bank has directed banks and financial institutions (BFIs) to facilitate political parties and candidates in opening separate bank accounts to manage election-related expenses.

The notice, issued on Monday, January 26, follows a recommendation from the Election Commission. The move is aimed at enhancing transparency in campaign financing, which many observers consider a root cause of corruption in Nepal.

According to the notice, BFIs must ensure that political parties, their candidates — including those contesting under proportional representation — and independent candidates can open a dedicated bank account in Nepali rupees for the duration of the election. Accounts must be held in BFIs classified under A, B, or C categories.

Normally, individuals and institutions are barred from opening more than one account of the same type in a single bank. However, the central bank said it has granted an exception for election-related accounts. The Election Commission has requested that these accounts remain active until the general election concludes and the commission orders their closure.

Although the Election Commission sets limits on campaign expenditure for each election. For the House of Representatives elections scheduled on March 5, spending limits remain unchanged from 2022, ranging from Rs 2.5 million to Rs 3.3 million. Howver, studies show that candidates often exceed the ceiling. 

Addressing the link between political financing and corruption, Finance Minister Rameshore Khanal — who chaired the High-Level Economic Reforms Recommendation Commission under the KP Sharma Oli-led government — stated on June 26, 2025, that reforming campaign finance was essential to tackling corruption. In his keynote address at the 9th NewBiz Conclave & Business Excellence Awards, Khanal said: “Addressing political financing is key to cleaning up governance. Unless this is fixed, policies and laws will continue to favour special interest groups, cartels, and syndicates.”