A/C payee cheque to be a must for transactions above Rs 1 million

May 12, 2017

The Himalayan Times, 12th May 2017, Kathmandu

Banks and financial institutions have been instructed to issue account payee cheques for transactions of one million rupees and above from the next fiscal.

Issuing a circular today, Nepal Rastra Bank — the central regulatory and monetary authority — stated that account payee cheques would be mandatory while issuing payments to firms, companies, organisations or offices for transactions of one million rupees and above.

However, the NRB circular added that BFIs could provide cash payment of more than one million rupees to depositors, if s/he requested for cash payment and the concerned BFI found the reason genuine. The BFIs have to submit the details of cash payments that exceed the ceiling to the supervision department of the financial institution concerned and Financial Information Unit of NRB.

Likewise, the central bank has also raised the project-based lending level to Rs 30 million for micro hydel projects of up to 1,000 kilowatts, 500-kilowatt peak capacity solar mini-grid and wind energy, and gasifiers of up to 200 kilowatts that are operated by cooperatives (excluding savings and credit cooperatives), or through public-private partnership or consumers’ committee.

NRB has also raised the credit limit for families who have good credit history to Rs 150,000 for the use of renewable energy like solar home system, solar cooker, solar dryer, solar pump, bio-gas, improved water mill and improved cook stoves in a bid to increase use of renewable energy.