In order to crack down on the black money trail in the country, the Government is looking at banning cash transactions above 3 Lakhs. A ban on cash transactions above Rs 3 lakh will ensure that credit or debit cards are used to make large payments which will ensure that the transactions are recorded and can be tracked easily. The Special Investigation Team (SIT) on black money had recommended ban on cash transactions of above Rs 3 lakh and restricting cash holding with individuals to not more than Rs 15 lakh to curb illegal wealth in the economy. The SIT headed by Justice (Retd) M B Shah, had earlier submitted its fifth report to the Supreme Court on July 14 on methods to curb black money in the economy.

“Having considered the provisions which exist in this regard in various countries and also having considered various reports and observations of courts regarding cash transactions the SIT felt that there is a need to put an upper limit to cash transactions,” an official statement had said. Also, cash withdrawal of more than Rs 3 lakh from any bank account in a day should consider as a suspicious activity and the concerned bank should report it to Financial Intelligence Unit (FIU) & the concerned Income-tax Department, it had said. he government also recently did away with transaction charges on payments made to it by credit or debit cards, to push the use of plastic money. It wants to make India into a cashless economy too, soon.