Black money clampdown: Govt may ban cash transactions above Rs 3 lakh

In yet another move to crack down on black money, the government is expected to put a ban on cash transactions above Rs 3 lakh. 

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. 

In a bid to bring down black money in the system, the government had also mandated PAN cards while buying jewellery over Rs 2 lakh. This means, anyone buying jewellery worth over Rs 2 lakh, will now have to submit a copy of their pan card which will ensure their details are on record. 

The 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.

A Times of India report said, that the government is yet to decide on SIT's proposal to bar cash holdings of over Rs 15 lakh because of opposition from trade and industry.