[Show all top banners]


More by mojaboy
What people are reading
[Total Subscribers 1]

:: Subscribe
Back to: Kurakani General Refresh page to view new replies
 New Cash transaction limits in Nepal ..GOOD OR BAD ??
SAVE! for ease of future access.
Posted on 05-22-17 4:18 PM     Reply [Subscribe]
Login in to Rate this Post:     0       ?    

Is this good or bad ?? what you think?

The government is putting Rs 1 million cap on cash transactions starting July 16.

The decision means any individual, firm, company or organization will not be able to make payment of purchase of service or commodities of Rs 1 million or higher on cash. The government set the new cap in consultation with Nepal Rastra Bank (NRB).

The decision, which was published in Nepal Gazette, means payment of or above Rs 1 million should be made through banking channel or instruments like check, draft, credit card and debit card, among others, from July 16.

The existing cash transaction limit is Rs 5 million. However, the limit has not been strictly enforced as it was introduced through a circular of Nepal Rastra Bank (NRB) that regulates bank and financial institutions (BFIs).

Since the new cash transaction limit has been brought by the government and has been published in the Nepal Gazette, breaching of cash limit rule could come under legal scanner.

The government's latest move comes amid growing concern that cash transactions make things easier for money laundering. The cash limit rule is in line with a provision in an anti-money laundering act which was long overdue.

Though the Asset Laundering Prevention Act (ALAP), 2008 requires any firm or individual to make transactions only through negotiable instruments while purchasing any products or services to a certain amount or more than the specific amount that the government publishes in the Nepal Gazette, the delay in setting threshold for cash transaction has affected implementation of the provision. The Article 41 of ALAP states that the government shall make an arrangement for such threshold in consultation with the central bank.

The new rule, however, will not affect depositing, saving and exchanging cash in bank and financial institutions, repayment of loans and interests and cash transactions between bank and financial institutions.

By lowering the threshold, the government also wants to stir the country toward 'cash-less' system and encourage the use of other negotiable instruments like checks, drafts, credit cards, debit cards, Internet banking, mobile banking and branchless banking, among others, say government officials.

Stakeholders say that the fixation of minimum threshold for cash transaction also helps to reduce tax evasion, revenue leakage, financial crimes and illicit flow of finance. Use of other negotiable instruments over cash also reduces the cost of the government in terms of publishing, issuing, circulating, handling and management, destruction, and security of bank notes.

Please Log in! to be able to reply! If you don't have a login, please register here.



Within last 60 days
Recommended Popular Threads Controvertial Threads
TPS Re-registration case still pending ..
Anybody gotten the TPS EAD extension alert notice (i797) thing? online or via post?
TPS EAD auto extended to June 2025 or just TPS?
whats wrong living with your parents ?
TPS advance parole Travel document i-131, Class of Admission ?
Now Trump is a convicted criminal .
Ajay Kumar Dev sentenced to 378 yrs
Why Americans reverse park?
Biden said he will issue new Employment visa for someone with college degree and job offers
Nepali Passport Renewal
Facts showing how US is worse than Russia
TPS Renewal Reregistration
Does the 180 day auto extension apply for TPS?
" अनि ग्रिन कार्ड बन्यो त ?"
Nepali Passport Renew
Shot Dead
मैले नबुझेका केहि गीत का lyrics हरु
Nims- एक उन्मत्त साँढे
cannot accept Visa candidates
NOTE: The opinions here represent the opinions of the individual posters, and not of Sajha.com. It is not possible for sajha.com to monitor all the postings, since sajha.com merely seeks to provide a cyber location for discussing ideas and concerns related to Nepal and the Nepalis. Please send an email to admin@sajha.com using a valid email address if you want any posting to be considered for deletion. Your request will be handled on a one to one basis. Sajha.com is a service please don't abuse it. - Thanks.

Sajha.com Privacy Policy

Like us in Facebook!

↑ Back to Top
free counters