The government has launched an e-Pension system that eliminates the need for physical bank visits
Nepal's 3.5 lakh retired civil servants no longer need to stand in long bank queues just to renew their pension. The government has officially launched an e-Pension Verification system that lets pensioners complete the entire renewal process from home using a phone or computer. Finance Minister Dr. Swarnim Wagle inaugurated the system at a program held at the Ministry of Finance on Friday (9th March, 2026).
What's the Big Deal?
Until now, pensioners were legally required to physically show up at a bank at least once a year to verify their identity. For elderly citizens, people with disabilities, and Nepalis living abroad, this was a major hassle. The new system replaces that with digital self-verification powered by AI facial recognition and liveness detection.
On the financial side, the government had been paying banks around Rs. 15 crore per year in commission for handling pensioner verification. That cost is now expected to be eliminated entirely.
How Does It Work?
The process is straightforward:
- Visit this page: pension.gov.np
- Sign up using your Pension Tracking Number and password.
- Enter the 6-digit OTP sent to your registered mobile number.
- From the dashboard, start the Liveness Verification process.
- Sit in a well-lit area and keep your face centered in the camera frame.
- The system performs facial recognition, then asks you to show a hand gesture like a thumbs up, thumbs down, or victory sign.
- Once the gesture is verified, your identity is confirmed and the renewal is complete.
The whole system was developed by Third Factor AI.
What About Pensioners Living Abroad?
Nepali pensioners overseas can use the same online system. If that's not possible, they can submit an application at the nearest Nepali embassy or consulate. Once the mission verifies and forwards the confirmation to the Pension Management Office, the account gets renewed.
Rules and Requirements Every Pensioner Should Know
According to the Pension Payment Management Procedure 2082, a pension account for retired employees remains active for 1 year, while a family pension account remains active for 6 months. In both cases, renewal must be completed before the period expires, either online or in person.
Opening a new bank account for pension purposes now requires a National ID card number. However, exceptions have been made for senior citizens aged 90 and above, provided they submit a letter of recommendation from their ward office.
In the event of a pensioner's death, the legal heir is required to notify the Pension Management Office or the Treasury and Accounts Controller Office within 35 days. If pension funds continue to be collected fraudulently after death, the amount will be recovered as government dues.
Additionally, if a pension is not renewed for five consecutive years, the entitlement certificate will be placed on hold, and any remaining balance will be deposited into the state revenue account.
Article Last updated: April 11, 2026
