RBI has withdrawn Rs 2000 notes from circulation.Individuals holding Rs 2000 notes can now either exchange them for other denomination notes from a bank or deposit the same into their bank accounts. However, if you deposit more than Rs 50,000 in a single transaction, then you have to mandatorily quote your PAN as per income tax rules.
Rule 114B of the income tax rules makes it mandatory for an individual to quote his/her PAN if the cash deposit in a single day either with a bank or post office exceeds Rs 50,000 in a single day. However, quoting PAN is not mandatory if the amount deposited does not exceed Rs 50,000 in a single day.
Here is an example to understand this. Suppose, you make a cash deposit of Rs 30,000 in Rs 2000 banknotes into your bank account. And 15 days later, you make another cash deposit of Rs 40,000 in Rs 2000 banknotes into that same bank account. As the single transaction in a day does not cross Rs 50,000, you will have to quote PAN while making a cash deposit of Rs 2000 notes. However, if you had made a single cash deposit of Rs 70,000 (Rs 30,000 + Rs 40,000) in a single day, then the bank will ask you to quote your PAN mandatorily at the time of making the cash deposit.
The government has made the quoting of PAN or Aadhaar mandatory if the cash deposits or withdrawals in a financial year exceed Rs 20 lakh. The notification was issued by the Central Board of Direct Taxes (CBDT) on May 10, 2022, and the new rules became effective from May 26, 2022.
Along with depositing, an individual also has the option to exchange Rs 2,000 notes. However, the RBI has put a limit on the number of notes that can be exchanged. As per the RBI notification,an individual can exchange a maximum of 10 notes or Rs 20,000 at a time. In a media interaction on May 22, 2023, the RBI governor said that banks will follow their own process and rules in case of an exchange of Rs 2,000 notes.
However,there is no limit on the amount of deposits that can be made in the bank account. The KYC rules will be applicable in case of deposits.
The last date to deposit orexchange Rs 2000 noteis September 30, 2023. The central bank has taken the decision to withdraw Rs 2000 notes from circulation as a part of its clean money policy while maintaining that Rs 2000 note continues to be a legal tender.
FAQs
As per the Reserve Bank of India (RBI) guidelines, you can deposit up to ₹50,000 into your Savings Account without furnishing your PAN card details. However, if you want to deposit a higher amount, you will need to provide your PAN card details.
Is a PAN card mandatory for cash deposit? ›
Cash Purchase of Bank Drafts - You need to mention PAN card if you are doing cash purchase of bank drafts/ pay orders or banker's cheques exceeding Rs. 50,000 on any day. Cash Deposit - Quoting PAN is essential while making transaction or cash deposits worth Rs. 50,000 or more in a single day in any bank account.
Is a PAN card mandatory for withdrawal more than $50,000? ›
As per rule 114B of Income Tax Act, 1961 it is mandatory to submit your PAN details when opening a new Savings Account. Moreover, PAN Card is also required when you are doing any transactions above ₹50,000/-.
How much money can I deposit in my bank account with PAN card? ›
A common daily cash deposit limit in savings accounts is ₹50,000 and any amount higher than this requires your PAN details or Form 60/61 in case you do not have a PAN card. Depositing cash above the limit of ₹1 lakh may attract the attention of the Income Tax department.
What happens if I deposit $50,000 cash in the bank? ›
Depositing a big amount of cash that is $10,000 or more means your bank or credit union will report it to the federal government. The $10,000 threshold was created as part of the Bank Secrecy Act, passed by Congress in 1970, and adjusted with the Patriot Act in 2002.
What happens if we deposit more than $50,000? ›
On depositing more than Rs.50,000 you are required to provide your PAN card details but you can make a declaration about the particulars of the deposit in Form 60 in case you don't have a PAN card. These measures are put in action by the Income Tax department to keep a check on the cash deposits being made.
What is the best way to deposit large amounts of cash? ›
To safely deposit a large amount of cash, visit a brick-and-mortar branch operated by your financial institution. Contact your financial institution if you plan to make a sizable deposit, said Christopher Naghibi, executive vice president and chief operating officer at First Foundation Bank.
Why do banks ask for PAN cards? ›
One of the primary reasons to have a PAN card is for the purpose of taxation. If an individual with annual interest earnings exceeding ₹10,000 on savings deposits has not linked his or her PAN with the bank account, the concerned bank will deduct TDS at a rate of 30% instead of 10%.
What is the maximum amount of cash you can deposit in a bank? ›
Cash deposit limits can be different for each bank or financial institution, but banks must report any deposits over $10,000 to the IRS. So, while you may be able to deposit more than $10,000 into your bank account, know that the bank will investigate, track and report that payment as a result to ensure it's legal.
How much cash deposit is suspicious? ›
Banks are required to report cash into deposit accounts equal to or in excess of $10,000 within 15 days of acquiring it. The IRS requires banks to do this to prevent illegal activity, like money laundering, and to curtail funds from supporting things like terrorism and drug trafficking.
Banks must report cash deposits totaling more than $10,000. Business owners are also responsible for reporting large cash payments of more than $10,000 to the IRS.
How much money can I withdraw without being flagged? ›
The Limit You Need To Worry About Is $10,000
“$5,000 is okay, but if you withdraw more than $10,000, the transaction will be reported to the IRS and at least one other government agency,” Bakke said.
Can I transfer 6 lakhs in one day? ›
1) Payment Gateway transaction limit is up to 10 lakh per day / per transaction. 2) Own account fund transfer — No limit (up to the available balance in debit account). 3) IMPS to registered beneficiary - up to Rs 5 Lakh per day/per transaction. 4) NEFT to registered beneficiary per day - up to Rs.
How much money can I deposit in a bank without tax in India? ›
Individuals who deposit cash into a savings account and accumulate INR 10 lakh or more during a fiscal year are required to notify the tax authorities. For those holding current accounts, this reporting threshold is elevated to INR 50 lakh.
Is a PAN card mandatory? ›
In India, a PAN card is required for many financial operations, including opening a bank account, purchasing or selling real estate, making investments, and submitting income tax returns. You must thus obtain a PAN card if you intend to make any form of investment in India.
How much cash can you put in the bank without being flagged? ›
Banks must report cash deposits of more than $10,000 to the federal government. The deposit-reporting requirement is designed to combat money laundering and terrorism. Companies and other businesses generally must file an IRS Form 8300 for bank deposits exceeding $10,000.
How much cash can be deposited in a bank per day in a current account? ›
Cash deposit limit in Current Account
For example, the cash deposit limit in SBI for current accounts is 5 lakh to INR 100 crore per month. In HDFC it is 60 lakh or ten times the value of the current monthly balance (AMB), after crossing this limit the bank may charge some interest from the depositor.
How much cash can you deposit without bank reporting? ›
Banks are required to report cash into deposit accounts equal to or in excess of $10,000 within 15 days of acquiring it. The IRS requires banks to do this to prevent illegal activity, like money laundering, and to curtail funds from supporting things like terrorism and drug trafficking.
