Saturday, July 8, 2017

Central bank bans cash transaction of Rs 1 million or more

The central bank has banned cash transaction of Rs 1 million or above from July 16.
"Payments of Rs 1 million or above should not be made in cash from July 16," the central bank said in its directives. "Instead, people and firms should use banking instruments like cheques and electronic to settle payments."
Nepal Rastra Bank (NRB) – the central monetary authority – has brought the new rule 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, the central bank notice reads, adding that the rule will come into effect from the first day of the fiscal year 2017-18, which falls on July 16.
“However, the banks and financial institutions can extend Rs 1 million or more in cash based on special request and if the reason is logical,” the notice further reads, adding that the person, who withdraws the cash has to produce the identity card.

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