KATHMANDU: Cash transactions in Nepal will be limited to a maximum of Rs 500,000 starting from January 15, according to new directives issued by Nepal Rastra Bank (NRB).
The provision has been included in the central bank’s Unified Directives issued to banks and financial institutions. Under the new rule, any payment exceeding Rs 500,000 must be made either through an account-payee cheque or directly credited to the beneficiary’s bank account. Cheques issued in the name of any firm, company, institution or office must also be account-payee.
NRB has clarified that the new limit will not create problems for payments related to priority infrastructure projects such as hydropower, roads and communications. Wages and salaries of employees and workers involved in such projects can continue to be paid without disruption.
Similarly, the new arrangement will not affect payments for the supply of goods and materials for development projects, payment of government revenue, or the deposit of bail, guarantee and security amounts. Pension distribution through pension camps will also remain unaffected.
The central bank has further said that government relief, grants and assistance can continue to be distributed as usual. Likewise, remittance companies and their agents will be allowed to pay beneficiaries in cash, and savings and credit cooperatives can continue cash transactions with their members for daily business.
The government had decided on November 1 to cap cash transactions at Rs 500,000. The Ministry of Finance published the related provision in the Nepal Gazette on Thursday, paving the way for its formal implementation from January 15.
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