Transaction of Rs1m or more in cash barred: NRBCome July 16, no one will be allowed to conduct transaction of Rs1 million or above in cash.
Come July 16, no one will be allowed to conduct transaction of Rs1 million or above in cash. This basically means payments of Rs1 million or above should not be made in cash. Instead, banking instruments like cheques and electronic means should be used to settle such payments.
This rule was enforced by the Nepal Rastra Bank (NRB), the central monetary authority, as a measure to curb money laundering and other illicit activities.
This rule applies to every individual, firm, company and organisation while depositing money in banks or withdrawing money from banks, says a notice issued by the NRB. This rule will come into effect from the first day of the fiscal year 2017-18, which falls on July 16.
“However, banks can extend Rs1 million or more in cash based on special request and if the reason is logical,” says the notice.