Fiscal Nepal
First Business News Portal in English from Nepal
KATHMANDU: Nepal Rastra Bank (NRB) has enforced a stricter policy on cash withdrawals through ATM (debit) cards, slashing the monthly withdrawal limit to Rs 100,000 in an effort to promote digital payments and reduce cash dependency.
As per the amended Integrated Payment System Directive 2081, commercial banks and financial institutions can now allow their customers to withdraw up to Rs 300,000 per month — down from the previous limit of Rs 400,000. The daily withdrawal ceiling has also been reduced to Rs 50,000, half of the earlier Rs 100,000 limit. Similarly, the per-transaction limit has been cut to Rs 20,000 from Rs 25,000.
According to NRB Spokesperson and Executive Director Kiran Pandit, the move aims to encourage digital transactions and minimize the cost associated with managing cash-based operations.
“This decision is part of our ongoing efforts to promote a cashless economy. ATM transactions are declining, and maintaining cash circulation involves high operational costs. By tightening withdrawal limits, we aim to redirect users toward digital payment systems,” Pandit said.
He added that the central bank’s policy aligns with global trends where central banks are promoting QR-based and online payment systems to enhance efficiency and traceability in financial transactions.
A senior banker welcomed the NRB decision, stating that the growing use of QR codes and digital payment apps has significantly reduced the need for physical cash.
“Even small payments are now made through QR systems. The new ATM withdrawal limits reflect this behavioral shift,” the banker explained. “Moreover, banks will benefit from reduced operational costs — from managing cash sorting and transportation to security and staff allowances.”
Bankers say that each ATM requires high maintenance and security costs, including the deployment of up to four people during cash refilling operations, especially on public holidays. The revised limit, they believe, will reduce these burdens while promoting digital literacy among consumers.
NRB data shows that as of mid-July 2025 (2082 Saun), there are 5,264 ATMs operating across the country, and banks have issued 13.66 million debit cards. However, ATM transactions have seen a gradual decline — from Rs 91.93 billion in July 2024 to Rs 85.83 billion in July 2025 — indicating a growing shift toward digital and QR-based payment systems.
Economists view this as a strategic move to modernize Nepal’s payment infrastructure, strengthen financial transparency, and align with the government’s Digital Nepal Framework.
This development is expected to reshape customer banking behavior and accelerate Nepal’s transition toward a more digitally integrated financial ecosystem.
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