Cash transaction limit asked to be raised from Rs 5 lakh

Kathmandu. President of the Federation of Nepalese Chambers of Commerce and Industry (FNCCI), Chandra Prasad Dhakal, has urged the government to increase the limit on cash transactions.

Speaking at a program organized on the occasion of International Customs Day in Kathmandu on Monday, Chairman Dhakal said that the provision of only Rs 5 lakh in cash transaction has caused problems to the businessmen. He said that the provision of allowing cash transactions of only up to Rs 5 lakh in case banking access has not reached all parts of the country.

Stating that it was the right leadership and the right time to review the economic policies, Dhakal suggested that the government should focus on domestic production and entrepreneurship promotion policy rather than only giving priority to customs revenue.

Similarly, Chairman of Nepal Chamber of Commerce Kamlesh Kumar Agrawal said that the practice of requiring transactions of more than Rs 5 lakh from the banking system has created problems for entrepreneurs.

He suggested that the customs sector should be made more technology-friendly and implement a one-door system. Agrawal urged the government to reconsider the provisions of the existing Customs Act as it was impractical.

According to him, there is a need to create a competitive market by adjusting customs rates in Nepal.