NBE Sets One-Month Deadline for Digital ID Requirement to Open Bank Accounts in Addis Ababa

Beginning January 1, Ethiopians must present a Fayda national digital ID to open a bank account at branches in the capital.

A letter signed by Solomon Desta, Vice Governor of the National Bank of Ethiopia, dated November 26, instructs banks to enforce the use of digital IDs as a prerequisite for account opening, with a series of phased deadlines.

“The National Bank of Ethiopia has mandated all banks to require a National ID (Fayda) as a mandatory requirement for opening bank accounts, as per [the stated] scheduled,” the letter states.

Banks nationwide must comply with Fayda standards by January 2026, while those in major cities face an earlier deadline of July 1, 2025.

Existing bank account holders are also impacted, as they will be required to obtain a digital ID by December 2026 to keep their access to the accounts. 

The letter also permits digital (remote) customer onboarding for opening bank accounts, provided all necessary information required for account creation is collected.

The initiative, which aims to establish Digital IDs as the primary form of identification in banks and grant them legal acceptance across all financial institutions, was first announced in July of last year.

Authorities believe that Fayda offers a reliable and real-time identity verification system that can serve as a basis for onboarding new customers and introducing new digital products while mitigating associated financial risks.

Prime Minister Abiy Ahmed (PhD) has pinned Ethiopia’s prospects in the digital economy to the quick adoption of the Fayd ID project, which has neared 10 million registrations so far. 

The project looking to register 90 million Ethiopians received a 350-million-dollar support from the World Bank last year to help realize the ambitious target. The 31 commercial banks in the country are also expected to foot part of the bill in the procurement of kits as the Project rolls out nationally.