Banks in Afghanistan

The Da Afghanistan Bank (DAB) licenses banks and supervises branches, ATMs, payment terminals, anti-money-laundering measures and financial stability. The three state-owned banks are Bank-e-Millie Afghan, Pashtany Bank and New Kabul Bank. The seven private banks are Azizi Bank, Afghanistan International Bank, Islamic Bank of Afghanistan, Maiwand Bank, Afghan United Bank, The First Micro Finance Bank and Ghazanfar Bank. National Bank of Pakistan and Bank Alfalah are represented as foreign bank branches. A separate DAB list also names Arian Bank and Habib Bank Limited; their current operational license status is not publicly clear and should be checked directly with the DAB before opening an account. Banks generally offer current or payment accounts, savings accounts and fixed-term deposits in afghanis or foreign currencies. The DAB pursues a policy that prioritizes the use of the afghani domestically, while foreign-currency accounts and international transfers continue to exist. When opening an account, banks usually require a national identity document (Tazkira) or passport, completed KYC forms and, depending on the case, evidence of the source of funds and intended purpose. Companies typically also need a registration or license and tax documents. A personal account is not automatically authorized for business use. Additional documents may be required for transactions exceeding AFN 1,000,000. Electronic applications for an identity card are accepted for microloans, but do not generally replace the identity requirements for bank accounts. High-risk customers usually update their KYC data annually, medium-risk customers every two years and low-risk customers every three years. Access remains inconsistent in practice. In 2025 there were approximately 464 bank branches and 333 ATMs, concentrated mainly in Kabul and larger cities. Missing identity documents make access particularly difficult for women, people in rural areas and returnees. Withdrawal restrictions have been gradually eased since 2021; the most recent public DAB notices stated limits of up to AFN 500,000 per month and USD 2,000 per week, although the specific applicability depends on the account type, bank and current circular. A central, current retail fee schedule cannot be reliably established. Fees depend on the bank, product and payment channel. Providers of electronic transfers must disclose the fee and maximum execution time before the transfer. For card payments and digital services, Afghanistan has the national payment system (APS) and the domestic card system (AfPay). Depending on the bank, debit, credit or prepaid cards, ATMs, POS terminals, SMS banking, mobile banking and IVR services may be available. Technical interoperability and the announced expansion of instant payments have not been independently confirmed for every bank and ATM; actual availability should therefore be checked with the bank in advance. The DAB also lists eight licensed electronic-money providers: M-Paisa, M-Hawala, My-Money, ATOMA Pay, HesabPay, Aurum Pay, Star Pay and Las Pay. Refah is listed as a licensed payment institution. Electronic-money accounts are reported in large numbers, but only a small proportion are actually used actively. Agents may offer cash and payment services; the bank remains responsible for the actions of its agents, and agents must clearly document the services, fees and receipts. Islamic banking has been expanded gradually since 2021, but implementation is not uniform. Interest-based (Riba) financing is excluded. Afghanistan has two fully Islamic banks and several conventional banks with Islamic windows. Typical contractual forms include cost-plus financing (Murabaha), benevolent loans (Qard Hasan), partnership financing (Musharakah), diminishing partnership (Diminishing Musharakah), profit-sharing (Mudarabah), leasing (Ijarah), advance purchase (Salam) and commissioned manufacture (Istisna). Murabaha is particularly widespread. The products, terminology and availability differ by bank; fixed-term deposits and the lack of Islamic investment products slow the transition. Hawala or Hawaldar services remain central for domestic and cross-border transfers and are often used in practice as a supplement or alternative to banks. The DAB regulates licensed money-service providers, but practical supervision is less close than for banks. Hawala can be fast, reliable and comparatively inexpensive, but depending on the provider it offers less formal legal certainty, consumer protection and recourse. For formal payments and international transfers, it should therefore be checked whether a licensed bank or licensed payment service is available. The banking system remains burdened by high cash holdings, limited lending and liquidity risks. At the end of 2025, approximately 75 percent of bank assets consisted of cash or cash-like funds, while the financing-to-deposit ratio was about ten percent. The non-performing loan ratio was approximately 27.2 percent at the end of 2025, and private credit amounted to about 2.5 percent of gross domestic product in February 2026. These figures explain why account access and cash withdrawals often work more practically than extensive bank financing. Bank customers are entitled to transparent information, fair treatment, confidentiality and information about costs, benefits and risks. PINs and access codes must not be shared. Loss or misuse of a card and unauthorized electronic transfers should be reported to the bank without delay. In the event of an incorrect booking, the bank should correct the booking, including incorrect fees. Complaints should first be submitted to the bank and then to DAB customer protection at customer.protection@dab.gov.af or 0202511726. Complaints about electronic transfers should be submitted as soon as possible, or otherwise within 15 days; an extension may last no more than 30 days.