Supreme Court strikes down mandatory NID requirement for bank accounts

Summary

The Supreme Court has struck down Nepal Rastra Bank’s directive making the National Identity Card mandatory for opening or renewing bank accounts, saying citizens cannot be denied banking services without it. It has also ordered the government to enact a separate law to protect the privacy and security of personal and biometric data collected under the NID system.

Key Points
  • The Supreme Court annulled Nepal Rastra Bank’s directive that made the National Identity Card mandatory for opening or renewing bank accounts.
  • The court said citizens should not be deprived of banking services simply for not having an NID.
  • It directed the government to bring a separate law for the privacy and security of personal and biometric data collected for the NID system.
  • The verdict said a committee and security standards alone are not enough, and an independent data protection law and regulator are needed.
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