The Nepal government has decided to significantly restrict cash transactions, making banking channels mandatory for all purchases of goods or services valued at Rs 500,000 or more.
The new rule, which aims to discourage the use of cash and promote financial transparency, will be implemented starting January 15. The decision, approved by the Council of Ministers on December 2, is part of a broader effort to strengthen the country's anti-money laundering (AML) measures.
Grey list pressure
This move comes as Nepal seeks to exit the Financial Action Task Force (FATF) 'Grey List' (Jurisdictions under Increased Monitoring), where it was placed in February 2025 due to perceived weaknesses in its AML/CFT (Countering the Financing of Terrorism) implementation and enforcement. The FATF is an international body that monitors financial crime safeguards globally.
This new limit is a drastic reduction from the previous cash transaction limit of Rs 1 million, which itself was reduced from an earlier limit of Rs 3 million.
Impact on citizens
The Ministry of Finance and Nepal Rastra Bank (NRB) are coordinating the implementation, which will be enforced through commercial banks and financial institutions once the official notice is published in the Gazette.
Any transaction for the sale or purchase of goods and services of Rs 500,000 or more must be conducted via check, bank transfer, draft, connect IPS, or online banking.
This rule applies strictly to commercial transactions like the purchase of real estate, vehicles, gold, or payments for large construction projects.
.
