Kathmandu. According to Section 125A of the Civil Code, 2074, no one should carry out hundi related transactions.
Hundi transaction is a transaction that is made from Nepal to abroad or from abroad using any person, instrument or any other means other than the institution or payment instrument recognized under the prevailing law. This transaction is considered illegal in Nepal.
Issuing a notice today, Nepal Rastra Bank (NRB) warned all not to carry out illegal transactions through hundi for short-term gains. “No commercial transactions related to money transfer should be taken or given through any means without showing the actual accounts,” the NRB has said.
As per the law, if anyone commits an offence related to hundi, the property will be confiscated and imprisoned for up to 1 year. “Therefore, we should use only the banks and financial institutions and remittance companies licensed by Nepal Rastra Bank while transferring money from Nepal to foreign or from abroad,” the notice reads.
