Cash Deposit Rules: How much cash can be kept in your bank account, what does RBI rule say?

Everyone has a savings account in the bank. Because without an account you will not be able to do any kind of online transaction. Along with this, the money kept in the bank is considered more secure.

Whether it is an individual, a small business, or a professional person, everyone has one or more savings accounts. But even in a savings account, you can keep cash only up to a limit.

If more cash is kept than the limit set by RBI, then you may be fined heavily. Along with this, there is also a risk to the Income Tax Department if you keep an amount more than the limit.

What is the limit of depositing money in a savings account?

The account holder can keep up to Rs 10 lakh in the savings account. But if this limit exceeds Rs 10 lakh. Then you will have to inform the Reserve Bank of India or the Income Tax Department.

You will have to give this information under AIR (Annual Information Return). This does not mean that you will have to pay tax, but if this amount is more than the income, then you will have to be accountable for it.

Apart from this, the limit in a current savings account is 50 lakh rupees.

A PAN number is required in these transactions
If a person makes a transaction of 50 thousand or more, then a PAN number (permanent account number) is required for this. Or if the transaction amount exceeds the fixed period of one year, then also PAN number is required.

In such a situation, a PAN card is needed so that the amount transacted from the account can be checked. Although no tax will have to be paid for this, you will have to give information about this amount to the tax department.

You will have to give proof of where this amount has been credited or from where you have received this money. Therefore, if you have a savings account, then keep cash only up to the limit. At the same time, you can also create a big fund by investing this money in any scheme or FD.

Some banks also allow you to convert your savings account to a fixed deposit account. You can get more information about this from your bank's website.

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