Govt tightens process to open bank account to collect relief fund

The government has tightened the process to open bank account for collection of financial support for earthquake victims.

The new measure is intended to streamline financial support in its own bank accounts and ensure transparency, according to government officials.

Issuing a circular on Thursday, Office of the Prime Minister and Council of Ministers (OPMCM) said that any institution or individuals who want to open bank account for fund collection for relief of earthquake victims should first get permission from respective District Administration Offices (DAO) in Nepal and Nepali embassies and missions outside the country.

Nepal Rastra Bank (NRB) — the central regulatory bank — has issued the directive to its effect to licensed banks and financial institutions (BFIs).

According to the new provision, nobody will be allowed to withdraw funds collected in such bank accounts. Such fund will be automatically transferred to the Prime Minister Natural Disaster Relief Fund, the circular added.

Meanwhile, the government has directed the central bank to ensure that all funds collected in various bank accounts for the purpose of providing relief to earthquake victims will be transferred to seven accounts maintained in different banks by the Prime Minister Natural Disaster Relief Fund.”

“Past experience shows that funds and money collected under the pretext of disaster fund is either misused or lack transparency,” Shanta Raj Subedi, secretary at OPMCM, told Republica. “The newly introduced measure will help to centralize the fund, ensure transparency and help the government to distribute relief materials to earthquake victims in a more coordinated approach.”

Meanwhile, the government has received only Rs 1.5 billion in various bank accounts opened to collect relief for disaster victims, according to Subedi.

Support committed by different countries, organizations and individual stands at more than Rs 10 billion.

Source: Myrepublica