India’s neighbour caps cash transactions at Rs 5 lakh, new rule to come into effect from THIS date, its not China, Bangladesh, the name is…

As per the Nepalese government, the decision has been taken in accordance with the Money Laundering Prevention Act, 2008. The act gives the government the authority to impose restrictions on cash transactions.

New Delhi: In a major development, the Nepal government has announced that it has decided to set a limit of five lakh Nepalese rupees on cash transactions for the purchase and sale of goods and services, effective from January 15. The government shared this information by issuing a notice in the Nepal Gazette on Thursday, January 8. It is important to note that the in Indian currency, this amount is close to Rs 3 lakh.

The government has stated that any individual, firm, company, or institution must adhere to the cash transaction limit for the purchase or sale of any service or goods worth five lakh Nepalese rupees or more, or for any other transaction as well.

Nepal government takes an important decision

As per the Nepalese government, the decision has been taken in accordance with the Money Laundering Prevention Act, 2008. The act gives the government the authority to impose restrictions on cash transactions.

The government is of the opinion that cash transactions encourage illegal financial activities such as money laundering and terror financing, and that limiting cash transactions will curb these unlawful activities.

The decision comes at a time when Nepal has once again been placed on the grey list by the global anti-money laundering body, the Financial Action Task Force (FATF).