Infocomm Infocomm
24th NBFC100 TECH SUMMIT AWARDS 24th NBFC100 TECH SUMMIT AWARDS
BFSI AI SUMMIT BFSI AI SUMMIT
Home Regulators RBI SEBI TechINFRA Security Data Centre Cloud Services Government Reforms DBT Aadhaar GST Payments Payment Gateways ATM Point of Sale Payment Wallets Fintech Apps Banks Public Sector Private Sector Cooperative NBFCs Year Ender Magazine Magazine Subscription Articles Interviews Webinars Webinar Videos Video Series — Innovation Talk Upcoming Initiatives BFSI Events About Us Contact Us

Centre to cap cash transaction limit at Rs 2 Lakh

The Central government has decided to revise the cash transaction limit to Rs 2 Lakh from Rs 3 Lakh proposed in the Union Budget 2017-18.

In addition to this, Aadhaar number is made mandatory for filling income tax returns and applying for a PAN card, reported The Hindu.

AdvertisementElets BFSI AI Summit & Awards, Mumbai

The revision of the cap on cash transactions was one of 40 amendments to the Finance Bill proposed by the Centre.

AdvertisementSAAS

“In the official amendments to the Finance Bill, the government has proposed that the limit of Rs 3 lakh for cash transactions, beyond which it is illegal, be reduced to Rs 2 lakh. The penalty for violating this is a fine equivalent to the amount of transaction,” said Hasmukh Adhia, revenue secretary.

The amendment on cash transaction was proposed as a part of measures to promote cashless transactions mentioned in the Budget that was presented within three months of the demonetisation of high-value currency notes that accounted for 86 per cent of the money in circulation last November.

AdvertisementInfoComm India 2026

“The Special Investigation Team (SIT) on black money had suggested that no transaction above Rs 3 lakh should be permitted in cash. “The government has decided to accept this proposal. Suitable amendment to the Income-tax Act is proposed in the Finance Bill for enforcing this decision,” Arun Jaitley, union finance minister had said in his Budget speech.

Elets The Banking and Finance Post Magazine has carved out a niche for itself in the crowded market with exclusive & unique content. Get in-depth insights on trend-setting innovations & transformation in the BFSI sector. Best offers for Print + Digital issues! Subscribe here➔ www.eletsonline.com/subscription/

Get a chance to meet the Who's who of the Banking & Finance industry. Join Us for Upcoming Events and explore business opportunities. Like us on Facebook, connect with us on LinkedIn and follow us on Twitter, Instagram.

Our Coverage of Banks

City Union Bank Q2 FY27 Profit Rises 27% to ₹416 Crore as NII Jumps 31%; NIM Improves to 3.87%, Net NPA Falls to 0.48%

City Union Bank has reported a 27 per cent year-on-year rise in net profit to ₹416 crore for… Read more →

Karnataka Bank Q2 FY27 Profit Rises 37% to ₹435.89 Crore as NII Jumps 35%; Aggregate Business Hits Record ₹2.07 Lakh Crore

Karnataka Bank has reported a 36.6 per cent year-on-year rise in net profit to ₹435.89 crore for the… Read more →

Bandhan Bank Q2 FY27 Profit Jumps Over Five-Fold to ₹622 Crore as Provisions Fall; GNPA Eases to 3.1%

Bandhan Bank reported a net profit of ₹622 crore for the second quarter of FY27 (July–September 2026), more… Read more →

Credit Card Additions Hit 1.26 Million in September, Second-Highest of 2026; HDFC Bank and Axis Bank Lead

India's credit card issuers stepped up acquisitions ahead of the peak festive season, adding a net 1.26 million… Read more →

Banking System Liquidity Surplus Shrinks to ₹46,200 Crore as RBI Keeps Cash Tight to Defend the Rupee

The cash cushion that Indian banks built up over the summer is thinning out fast. Surplus liquidity in… Read more →

First Abu Dhabi Bank Scouts for an Indian Bank Buy; Bandhan Bank Denies Any Acquisition Talks

Bandhan Bank has firmly rejected market speculation linking it to a possible acquisition by First Abu Dhabi Bank… Read more →

whatsapp--v1