Central Bank amends provisions on cheque clearance

ShareSansar, Sept 16:

The Nepal Rastra Bank has amended a rather tedious and impractical provision for clearance it had enforced at the beginning of the current fiscal year.

As per the new provision made on Sunday, bank and financial institutions must issue an account payee cheque for the clearance of Rs 50 lakh or above. The BFIs must also issue an account payee cheque for the payment of cheques issued in the name of an organization.

The new provision, which is basically aimed at discouraging transaction in cash, will be implemented from November 16.

The central bank’s new provision also states that the amount written in words should be taken as conclusive if there is a discrepancy in a cheque’s figures in digits and words.

It has also stated that a cheque writer, punch, protector or ribbon writer is a must at the top of the cheque.

BFIs will not be compelled to clear a cheque if it is scratched, torn, stained or overwritten, the provision reads.

The central bank has also stated that a cheque must be written either entirely in the English or the Nepali language.

The central bank has also decided that a subsidiary company cannot act as a share broker for the scrip issued by the concerned company.

The NRB has also stated that an individual having a close connection with the promoters or the management of a company cannot be a member of its trade union.