KATHMANDU: A 28-year-old Chinese national, Zhou Jiao has been arrested at the Lazimpat area in Kathmandu, police said.

The arrest was made on the grounds of suspicions regarding illegal “Hundi” trading.

Zhou, holding passport number EJ 7279051, was taken into custody by the police.

A subsequent body search revealed that he was carrying 800 notes of Nepali 1000 and 800 notes of 500 rupees.

The Kathmandu Valley Crime Investigation Office reported that the seized cash has been sent to District Police Complex Teku for further investigation.

The funds are suspected to be involved in Hundi transactions, in violation of the guidelines set by Nepal Rastra Bank.

Police have set to take action against this offense under the relevant legal provisions.