Government could be putting a cap on how much cash you can have

Earlier, we reported how top private banks have decided to charge Rs 150 for cash deposits and withdrawals after four free transactions per month. However, it looks like the government has a different plan to discourage people from holding cash.

As per ET reports, the government could be setting a limit on the cash amounts that individuals and companies can hold at a time. This was recommended by the Special Investigation Team, constituted by the Supreme Court in July last year.

SIT had recommended that a limit of Rs 3 lakh be imposed on cash transactions and Rs 15 lakh on cash holdings. While the recommendation regarding cash transactions was implemented, the other one could be implemented soon.

Also read: Get ready for ‘cash tax’. Here’s what it is

As per experts, such a step could help in the war against black money, and combined with GST, this proposal has high chances of being fruitful.

Also read: Pay 1% TCS if you buy gold above Rs 2 lakh from April 1

(Image source: Quartz)