Understanding Digital Financial Transaction Accounts and Reconciliation

Digital Financial Transaction Accounts

When making payments or transferring funds through digital wallets, mobile banking, internet banking, SMS banking, or other electronic payment methods, sometimes transactions might fail due to technical issues, resulting in discrepancies in the account balance. In such situations, there is a system in place to reconcile the funds and update the customer's account balance.

The provisions are as follows:

(a) If the transaction occurs between institutions using electronic payment methods within the same day, the balance should be reconciled within one business day (T+1).

(b) If the transaction occurs between institutions using electronic payment methods, but both institutions are different Nepalese institutions, the balance should be reconciled within three business days (T+3).

(c) If the transaction occurs between institutions using electronic payment methods, but one of the institutions is foreign, the balance should be reconciled within thirty business days (T+30).

The responsibility of reconciling these transactions lies with both the issuing and acquiring institutions. For more information regarding these regulatory provisions and the digital financial transactions, please contact the relevant institutions.