KATHMANDU, July 16 (Xinhua) -- The Nepali government has prohibited financial transactions over 1 million Nepali rupees (9,665 U.S. dollars) at one time in cash starting from Sunday, the first day of the new fiscal year.
One involved in such transactions could face fine up to 1 million rupees according to the ban.
The Department of Money Laundering Investigation (DMLI) and Nepal Rastra Bank have issued several notices for the last few days asking people and firms to use banking instruments such as cheque and electronic transactions to pay for purchasing goods and services.
"The move is aimed promoting transparent financial transactions, boosting formal economy and controlling illegal and criminal activities that flourish in cash-based financial transactions," Binod Lamichhane, director of DMLI, told Xinhua on Sunday.
Lamichhane said that people could, however, deposit cash exceeding 1 million rupees in banks.
Last week, Nepal's central bank had lowered the cash transaction limit to 1 million rupees through the 2017-18 fiscal year from 3 million rupees (28,996 U.S. dollar) previously.
