Nepal Diaspora Bond Eligibility: NRN Categories A vs B Explained (2026)

Before you plan your diaspora bond investment, confirm your eligibility. Not all NRNs may qualify, and the rules differ subtly between Category A and Category B NRNs. This guide clarifies exactly who can invest and what documentation you'll need.

Eligibility Summary

The National Commitment document does not distinguish between NRN categories for bond eligibility. The operative criterion is simply "Non-Resident Nepali status" as defined under the NRN Act 2064.

Category A NRNs: Foreign Citizens of Nepali Origin

Definition: Person whose self, father, mother, grandfather, or grandmother was a Nepali citizen and who has acquired citizenship of a non-SAARC foreign country.

Documentation required:

• Valid NRN Identity Card (Category A)
• Foreign passport
• Proof of Nepali origin (citizenship renunciation certificate or parental/grandparental documents)

Bond eligibility: ✅ Eligible

Key consideration: Category A NRNs cannot hold Nepali citizenship concurrently. This may affect tax residency declarations on the bond application. Consult a tax advisor regarding potential double taxation if your country of residence lacks a DTAA with Nepal.

Category B NRNs: Nepali Citizens Residing Abroad

Definition: A Nepali citizen (retains Nepali passport) who has lived abroad for at least 2 years, engaged in profession, occupation, business, or employment outside SAARC countries.

Documentation required:

• Valid NRN Identity Card (Category B)
• Valid Nepali passport
• Proof of foreign residence (visa, residence permit, employment contract)

Bond eligibility: ✅ Eligible

Key consideration: Category B NRNs retain Nepali citizenship. They may be subject to Nepali tax on worldwide income, though practical enforcement is limited. Interest income from the bond will be subject to Nepali withholding tax.

Who Is NOT Eligible?

• ❌ Foreign nationals with no Nepali origin
• ❌ Nepali citizens residing in SAARC countries (India, Pakistan, Bangladesh, Sri Lanka, Maldives, Bhutan, Afghanistan) — unless they qualify under special provisions
• ❌ NRNs whose NRN Identity Card has expired
• ❌ Individuals holding only a tourist visa to Nepal

Document Checklist for Bond Application

Prepare these documents in advance to avoid delays when the subscription window opens:

• ✅ Valid NRN Identity Card (both sides, clear copy)
• ✅ Passport (foreign for Category A, Nepali for Category B) — validity must extend beyond bond maturity
• ✅ NRN bank account details in Nepal
• ✅ Tax identification number (PAN in Nepal, plus foreign TIN if applicable)
• ✅ Proof of foreign address (utility bill or bank statement, not older than 3 months)

Special Case: NRNs with Pending Citizenship Applications

If you have applied for an NRN Citizenship Certificate but not yet received it, you are NOT eligible until the certificate is issued. The NRN Identity Card alone (without certificate) may be sufficient for bond subscription — this will be clarified in the prospectus. We recommend obtaining the certificate for maximum flexibility.

See our DAO application guide for NRN Citizenship Certificate.