Nepal Rastra Bank Tightens Government Cheque Payment Rules with New Provisions

Kathmandu. The Nepal Rastra Bank has introduced stricter provisions regarding payments made through government cheques. The central bank has issued additional arrangements under Chapter 5, Clause 5.16.1 of the “Government Transaction Directive, 2076 (Second Amendment 2081)” and directed banks and financial institutions to implement the revised rules. As per the new provision, payments from government accounts must now be made only through the financial payment system or via “account payee” cheques. The central bank has also stated that these arrangements may be revised from time to time through further directives.

Under the revised rules, cheques drawn by Nepal Rastra Bank or commercial banks must mandatorily use a cheque writer, cheque verification system, cheque protector, or ribbon writer in the upper blank space on the front side of the cheque. Additionally, if a cheque issued in the name of an office is deposited by the concerned office itself, the official seal must be clearly affixed on the back of the cheque. However, if the same cheque is deposited by another individual, firm, company, or institution on behalf of the office, the seal will not be mandatory. Furthermore, any cheque received through the clearing system must be credited only to the account of the person in whose name the cheque has been issued. According to the central bank, the new provisions aim to make the government payment system more transparent, secure, and systematic.