Land Transactions No Longer Require Bank Statements: Department Revises Rule Within a Week

In a swift policy reversal, the Department of Land Management and Archive under the Ministry of Land Management, Cooperatives, and Poverty Alleviation has amended its recent directive. Buyers and sellers are no longer required to submit bank statements during land and property transactions.

The department issued a public notice on Sunday stating that the earlier instruction—issued just a week ago on May 2 (Jestha 20)—making bank statements mandatory, has now been withdrawn. The initial rule was introduced as part of efforts to improve financial transparency and meet the standards set by the Financial Action Task Force (FATF) to help remove Nepal from its grey list.

However, after widespread criticism and direct concern expressed by Prime Minister KP Sharma Oli, the department has decided to relax the regulation for more practical implementation.

Key Revisions Made:

• No mandatory bank statements: Buyers and sellers are no longer required to attach their bank account statements as proof of transaction.

• Advance payments (Bainabatta) also no longer require submission of bank statements.

• For transactions exceeding NPR 1 million, payment must still be made through banking channels, but only proof of payment is needed, not full statements.

• For property deals above NPR 5 million, the payment must be made using one of the following methods:

  • Good for payment cheque

  • Bank guarantee

  • E-payment systems

  • Other payment instruments approved by Nepal Rastra Bank

  • Cash deposited into the seller’s account, supported by a bank voucher copy, jointly certified by both buyer and seller

The initial directive, aimed at enhancing financial transparency in line with FATF recommendations, drew backlash from stakeholders due to its impracticality. Following public outcry and intervention from the Prime Minister, the department moved quickly to make the policy more flexible and user-friendly.

The revised directive is effective immediately, and all land revenue offices across Nepal have been instructed to follow the updated procedures.