₹2000 note exchange: Banks to notify big deposits to IT department

Though RBI has not set any limit to how many Rs 2000 currency notes can be deposited, but banks will be required to notify the income tax department about large cash deposits of ₹2,000 currency notes.

According to a report by Livemint, this would bring large cash deposits made during the ongoing phasing out of ₹2,000 notes on the radar of tax officials, who routinely comb through the data to detect tax evasion.

The reporting thresholds stand at ₹10 lakh for term and savings deposits and ₹50 lakh for current account deposits.

Mint report further adds that this reporting system has been in existence for a long time and is not a new provision in the wake of RBI’s decision to recall ₹ ₹2,000 notes.

Reserve Bank of India governor Shatikanta Das is expected to meet senior officials of private sector banks next week on governance issues where the progress of ₹2,000 note exchanges and deposits would also be discussed, and problems faced in the process would be addressed, a banker said on the condition of anonymity.

The Reserve Bank of India (RBI) announced withdrawal of Rs 2,000 currency notes from circulation on May 19, and said that those holding the existing notes in circulation can deposit in bank accounts or exchange from Tuesday (May 23) till September 30.