KATHMANDU: Finance Minister Rameshwor has said the government has lowered the limit on cash transactions to control opaque dealings and curb the circulation of illicit money.
Speaking at a programme organized in Kathmandu on Saturday to mark the 61st anniversary of Rastriya Banijya Bank, Minister Khanal said some sectors are still operating in a non-transparent manner and are being used as channels to convert illegally earned black money into white. He said the cash transaction ceiling was reduced to address such practices.
While banks and financial institutions have so far performed relatively better than other sectors, he stressed the need for continued vigilance. He also underlined the importance of moving from physical currency to virtual currency, and from physical banking access to virtual banking access.
Minister Khanal said the Ministry of Finance is in discussion with Nepal Rastra Bank to create conditions for investment based on entrepreneurship, capacity, and income-generating ability, rather than relying solely on collateral-based lending.
He added that although the financial sector is not particularly weak at present, it is natural for problems to arise from time to time due to various factors.
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