KATHMANDU: Nepal Rastra Bank (NRB) has directed banks and financial institutions to restrict cash transactions above Rs 500,000, effective January 15. The central bank said the limit will be enforced from January 15 for all goods and services.
Under the new directive, any payment of Rs 500,000 or more must be made through account-payee check or direct transfer to the beneficiary’s bank account. Checks issued in the name of firms, companies, institutions, or offices must also be account-payee only.
NRB clarified that cash payments above the limit may be allowed in special cases if a depositor provides a valid reason. Banks must maintain and update monthly records of such transactions.
The move follows a December 1 Cabinet decision requiring all transactions above Rs 500,000 to be conducted through the banking system. The provision was published in the Nepal Gazette on January 8.
With the new rule, only vehicles priced below Rs 500,000 can be purchased in cash. In the current market, this applies mainly to entry-level motorcycles and scooters. Larger motorcycles are priced above the limit and must now be purchased via check or digital payment.
All new four-wheelers, which are priced well above Rs 500,000, cannot be bought in cash. However, used vehicles priced below the threshold can still be purchased with cash.
The government said the policy aims to discourage cash-based transactions, strengthen anti-money laundering measures, and promote digital payments.
