Chamber of Commerce Leaders Urge Government to Raise Cash Transaction Limit Amid Banking Access Gaps

Chandra Prasad Dhakal, President of the Federation of Nepalese Chambers of Commerce and Industry (FNCCI), has urged the government to immediately raise the current cash transaction limit of NPR 500,000. Speaking at an event in Kathmandu on the occasion of International Customs Day on Monday, President Dhakal emphasized the need to review this provision, keeping in mind the reality that banking access has not reached every corner of the country.

He stated that the limited cash transaction provision is causing significant problems for businesses in their daily operations. President Dhakal noted that this is the right time to revise economic policies, suggesting that the focus should shift from prioritizing customs revenue to adopting policies that promote domestic production and entrepreneurship. He expressed the view that the government's attention should be focused on creating a business-friendly environment.

Similarly, Kamlesh Kumar Agrawal, President of the Nepal Chamber of Commerce, stated that the legal provision mandating all transactions exceeding NPR 500,000 through the banking system has created complications in the business sector.

He demanded that the customs sector be made technology-friendly and that the one-stop system be fully implemented. He stressed the need to reconsider the penalties and fines stipulated in the existing Customs Act, calling them impractical. Agrawal analyzed that the market can only become competitive by adjusting the customs rates in Nepal.