The government of Nepal has set a maximum cash transaction of up to Rs 5 lakh for the purchase of goods and services, the decision to be effective from Magh 01, 2082 onwards. The decision helps further promote digital payments and strengthen transparency.
Prior to this, per cash transaction limit was Rs 10 lakh. The new move is expected to increase transactions via banking, even more widely adopted, and enrich banking access among the public.
The new limit decision was made at a cabinet meeting on Monday, Mangsir 15, 2082. With this ruling, it has been brought into the law that cash transactions of over Rs 5 lakh per transaction must be made via a banking channel. This ensures a formal and transparent system.
Also: Digital Transaction Limit of Mobile Banking, Internet Banking, and Wallets in Nepal
New milestone for the digital payment system!
In a way, yes. The Rs 5 lakh cash transaction limit per transaction encourages people to use the banking system in a more effective and transparent way. It further removes loopholes and enhances a transparent system. It’s perhaps a new milestone as the government seeks to promote financial inclusion.
Did you know? Banks have reached 77 districts in Nepal.