Kathmandu. KATHMANDU: Nepal Rastra Bank (NRB) has made it mandatory for payment above Rs 5 lakh to be made through accountant cheque. The provision has been implemented by amending the Integrated Directive-2081 issued by the Nepal Rastra Bank for class ‘A’, ‘B’, ‘C’ and ‘D’ microfinance financial institutions.

As per the new directive, the banks and financial institutions will have to compulsorily use accountable cheques while making payments above Rs 5 lakh, keeping in mind the objective of anti-money laundering.

Earlier, such a system was applicable only on transactions of more than Rs 10 lakh. However, it is expected that the central bank has reduced the limit to Rs 5 lakh, which will discourage cash transactions and increase financial transparency.

According to the NRB, the move will help control illegal financial transactions, secure the financial system and reduce money laundering risks. The central bank has also urged the microfinance institutions to strictly follow the directive.