Himalayan Bank’s Core Banking System Down for Three Weeks, Customers Struggle With Mobile Banking

Kathmandu: Customers have faced serious problems as Himalayan Bank’s core banking system has remained disrupted for three weeks. The bank had earlier announced that its services would be temporarily unavailable for a few days to upgrade its core banking software. However, the disruption has continued for nearly a month, affecting daily transactions of millions of customers.

The bank had issued a notice on 16 October, stating that banking services would be disrupted from 20 to 27 October while upgrading its core banking software from T24 to R23. When services did not resume as promised, another notice was published on 30 October, saying that transactions had restarted from 28 October. In the same notice, the bank apologized for the delay, stating that the upgrade aimed to make mobile and internet banking services “timely, secure, and high-quality.”

However, even after the announcement, customers reported that services were still not functioning properly. When they complained on the bank’s social media pages, the bank restricted public comments. As customer complaints continued, the bank issued another statement on 6 November, saying it could not fully resume services on time due to issues with the new software.

That notice read, “Himalayan Bank Limited, with the aim of providing a stronger, safer, and higher level of service, has successfully completed the upgrade of its Core Banking Software from T24 Release R19 to T24 Release R23 between 20 to 27 October. The main banking transactions have been running since 28 October. However, we acknowledge that services at branches are taking longer than expected due to the new system and are working with priority to make all services fully operational.”

The bank also stated that it was upgrading its core banking, mobile banking, and internet banking systems simultaneously, which caused technical challenges. But it did not clearly mention when services would return to normal. The bank also urged customers not to believe all information circulating online, saying it was aware of the concerns shared on social media and in the media.

Customers, however, have expressed growing frustration on platforms like LinkedIn. One customer, Prajina, wrote: “It is unacceptable that Himalayan Bank’s mobile and web banking services have been disrupted for weeks. Since around October 20, customers have not been able to make even simple transactions. Such a large financial institution should not keep its customers in the dark for so long. A ‘system upgrade’ cannot justify weeks of disruption without transparency or a backup plan. Where are the daily updates? Where is the accountability?”

Similarly, Devendra Khanal criticized the disruption during the festive season, saying, “Since Kartik 3 (20 October) , both the HIMB mobile app and internet banking have been unavailable. This disruption extended over nine days during Tihar and Chhath, one of the most important times for customers. Even on October 28, the app showed only an error message. Such prolonged downtime reflects poor planning and has caused major inconvenience.”

Another customer, Pragyan Raj Rajbhandari, highlighted the lack of communication, writing, “Like everyone else, I am a daily user of mobile banking apps. I was surprised when Himalayan Bank suddenly went under maintenance on Kartik 3 (October 20), during festival time. The downtime was scheduled till Kartik 10 (October 27), but now it’s Kartik 24 (November 10), and I still can’t access the system. No proper communication is provided. All listed contact numbers are busy, and even customer service doesn’t respond. Do they really care about their customers?”

Customer Saroj Shahi called the upgrade a “disaster,” saying, “It’s been over two weeks since the upgrade announcement. The ATMs stopped working, there’s no clear communication, and the new interface looks outdated, like it’s from 2008. They even used AI-generated art with watermarks in the live app.”

The Nepal Rastra Bank said it is aware of the disruption. Spokesperson Guru Prasad Poudel stated that the regulatory body is monitoring the issue closely. He said, “If a bank needs to shut down services for more than 24 hours for a system upgrade, it must inform Rastra Bank in advance. Himalayan Bank had done so. However, the process took longer than expected.”

He added that although some operations resumed, certain parts of the system were still not functioning smoothly. Banking experts have also questioned the bank’s preparedness. One expert said that problems in the core banking software had affected related services like statement issuance. He noted that the new system was being reviewed by another company and that the issue might stem from infrastructure or implementation weaknesses.

A cybersecurity expert, speaking anonymously, clarified that this was not a hacking or security incident. “This is not a cybersecurity issue. The bank was not hacked, and there’s no sign of a data breach. The problem seems to be technical, likely related to internal testing or system compatibility.”

Experts noted that seven days is already a long period for a core banking system upgrade. Himalayan Bank’s 22-day disruption has forced customers to visit branches for even basic transactions, raising questions about the reliability of its digital services.

The bank has said that experts are working to restore mobile and online banking as soon as possible.

 

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