Nepal Rastra Bank Issues New Notice on Cheque Clearing and Payment System -

Nepal Rastra Bank has issued a directive requiring banks and financial institutions to process payments of NPR 500,000 or more strictly through account payee cheques or direct transfers to the beneficiary’s account. Payments made in the name of firms, companies, or organizations must also be settled via account payee instruments.

However, exceptions may apply in specific cases, such as when a depositor provides a valid reason for cash withdrawal or for daily operational transactions between licensed financial institutions. This regulation aims to promote transparency, reduce cash-based transactions, and strengthen the formal banking system in Nepal.