Kathmandu, July 16
The central bank of Nepal has directed all banks and financial institutions of the country to carry out transactions worth Rs 1 million and above only through account payee cheques from Sunday, the first day of new fiscal year.
From today, the banks cannot pay in cash if the transaction value crosses Rs 1 million mark.
The Nepal Rastra Bank had issued a circular with the instruction to all banks and financial institutions of the country around two months ago.
The directive, however, allows the institutions to make appropriate decisions if any client applies for cash transaction citing special reasons or requirements. If the banks carry out cash transactions in such cases, they must inform the central bank about the volume of such transactions.