Police have arrested a 28-year-old man on charge of operating hundi transactions from ward 14 of Birgunj Metropolitan City on Tuesday.

Rabi Kumar Patel of ward 22 of the city was arrested in possession of Rs1.3 million, whose source could not be ascertained, according to police.

The suspect was detained while he was heading to Parwanipur on a motorcycle. Detailed investigation is underway into the case, said police. 

Hundi is an informal and illegal system of transferring money.