Banking News

Income Declaration Scheme, 2016 – Banks must accept large amount of Cash without any conditions

The Income Declaration Scheme, 2016 has come into effect from June 1, 2016. Under the said scheme, the declarants may pay their tax dues in cash at the Bank counters. In this connection, RBI invites attention to its circular DBOD.No.Leg.BC.38/09.07.005/2008-09 dated August 28, 2008, wherein banks have been advised to ensure that their branches invariably accept cash from all their customers who desire to deposit cash at the counters for the credit of Government account. Further, they were also advised to refrain from incorporating clauses, in the terms and conditions, which restrict deposit of cash over the counters. .Further, it was mentioned by the Apex bank that the Government observed that the banks are hesitant in allowing deposit of large amounts of cash by the declarants under the Scheme, with them, for credit to Government account. Banks shall accept cash from their customers as well as from walk-in customers as contained in Master Direction-Know your Customer Direction 2016 issued vide DBR.AML.BC.No.81/14.01.001/2015-16 dated February 25, 2016.

In this regard, RBI advised to heads of all the banks to immediately issue appropriate instructions to their branches as indicated above so that the declarants do not face any difficulty in depositing tax dues under the Scheme.

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