Find out how much money can be deposited in a Savings Account
Key Takeaways
- The Reserve Bank of India sets limits on cash deposits in Savings Accounts.
- You can deposit only INR 1 lakh cash in one shot in a Savings Account.
- Cash deposits in a Savings Account cannot exceed INR 10 Lakhs in a financial year.
- The RBI has set similar limits for Current Accounts, Fixed Deposits, and other banking transactions.
- Choose cashless transactions with DBS Bank's internet banking services and mobile application.
A Savings Account is undoubtedly the most basic and popular bank feature available. It is used to safely store your money while earning additional income through the interest offered. However, the Reserve Bank of India (RBI) sets specific limits on the funds you can deposit in a Savings Account. To learn more about the cash deposit limit in Savings Account, read on.
How much cash can be Deposited in a Savings Account?
The rules that limit the cash deposit limit in a bank Savings Account are in place to benefit account holders and assist the Income Tax department. Per Central Board of Direct Taxes (CBDT), when you make cash deposits in a Savings Account, you are only permitted to do so up to the limit of INR 1 lakh. Deposits exceeding this amount may attract the attention of the tax authorities.
Similarly, it is essential to know how much money can be deposited in a Savings Account in a year. To adhere to the cash deposit limit in Savings Account and avoid the notice of the tax authorities, you can only deposit cash up to INR 10 lakhs per annum.
Furthermore, your bank can set similar rules for cash withdrawals from a Savings Account, which you can ascertain under the terms and conditions section of the Account opening form.
Cash Transaction Limit for Fixed Deposits
According to CBDT regulations, cash-based Fixed Deposits are also subject to a maximum ceiling. You can only make a cash deposit of up to INR 10 Lakh in a Fixed Deposit. You can create higher amount FDs via cheques and internet banking.
Other Limits on Cash Transactions
Besides knowing the cash deposit limits in Savings Account, you should also know the maximum limits on other cash transactions. If you exceed these RBI-set limits, your bank may report you to the income tax authorities.
Current Accounts
Current Accounts are typically used for business transactions. As such, they are subject to comparatively higher deposit and withdrawal limits. You may receive an Income Tax notice for deposits aggregating to INR 50 lakhs cash in a Current Account.
Credit Card Bill Payments
While making a credit card bill payment, you must adhere to the cash deposits limit of up to INR 1 lakh. To pay bills exceeding this amount, you can rely on other cashless methods of payment.
Real Estate Transactions
While making high-value cash transactions concerning real estate, stick to the limit of INR 30 lakhs. Cash transactions exceeding this amount could lead to you receiving an Income Tax notice.
To ensure that you abide by the rules set by the RBI and avoid attracting the attention of the tax authorities, try to conduct cashless or bank-to-bank transactions as much as possible.
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Final Note
Now that you know the cash deposit limits in bank Savings Accounts, make sure you abide by the RBI guidelines while handling cash transactions. DBS Bank offers several financial services and solutions designed to encourage cashless transactions. You can conveniently transfer funds and conduct cashless transactions through DBS Bankinternet banking and mobile applications.
Download theDBS Bank app to get started.
*Disclaimer: This article is for information purposes only. We recommend you get in touch with your income tax advisor or CA for expert advice.
As a financial expert with a deep understanding of banking regulations and practices, I can provide valuable insights into the key concepts discussed in the article about cash deposit limits in Savings Accounts. My expertise is rooted in an in-depth knowledge of banking policies, especially those set by the Reserve Bank of India (RBI). Here's a breakdown of the concepts covered in the article:
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Cash Deposit Limits in Savings Accounts:
- The Reserve Bank of India (RBI) establishes limits on cash deposits in Savings Accounts.
- A depositor can only deposit up to INR 1 lakh in cash in one transaction in a Savings Account.
- The annual limit for cash deposits in a Savings Account is capped at INR 10 lakhs.
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Purpose of Limits:
- The limits are in place to benefit account holders and assist the Income Tax department.
- Cash deposits exceeding the specified limits may attract the attention of tax authorities, as per the Central Board of Direct Taxes (CBDT).
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Cash Transaction Limits for Fixed Deposits:
- Cash-based Fixed Deposits are also subject to a maximum ceiling set by CBDT, allowing a cash deposit of up to INR 10 lakhs.
- Higher amount Fixed Deposits can be created via cheques and internet banking.
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Other Limits on Cash Transactions:
- Current Accounts: Typically used for business transactions, Current Accounts have higher deposit and withdrawal limits. Deposits aggregating to INR 50 lakhs in cash may attract an Income Tax notice.
- Credit Card Bill Payments: Cash deposits for credit card bill payments are limited to INR 1 lakh. Amounts exceeding this limit can be paid through other cashless methods.
- Real Estate Transactions: Cash transactions related to real estate should not exceed INR 30 lakhs to avoid attracting Income Tax notice.
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Encouraging Cashless Transactions:
- The article suggests opting for cashless transactions, especially with the use of DBS Bank's internet banking services and mobile application.
- Emphasizes the convenience of transferring funds and conducting cashless transactions through DBS Bank.
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Final Note and Disclaimer:
- Reminds readers to abide by RBI guidelines when handling cash transactions.
- Recommends contacting an income tax advisor or CA for expert advice, underlining that the article is for information purposes only.
In summary, the article provides a comprehensive overview of the cash deposit limits in Savings Accounts, Fixed Deposits, and other banking transactions, urging readers to stay informed and adhere to the specified guidelines to avoid potential issues with tax authorities.
