In order to curb the menace caused by the black money which is being rotated in the economy, the government is likely to implement a law that will criminalize cash transactions exceeding Rs 3 lakh.
The proposal for the above mentioned law was put across by a Special Investigation Team (SIT) formed by Prime Minister Narendra Modi-led government in 2014. The proposal aims to encourage and ensure the use of credit or debit cards for transactions involving large amount of money.
The SIT, which is headed by Justice M.B. Shah, recently submitted its fifth report to the Supreme Court on ways to curb black money rotating in the national economy. In its report, the SIT members have recommended a blanket ban on cash transactions above Rs 3 lakh in the country.
They have also suggested the authorities to pass a law under which transactions above Rs 3 lakhs should be made illegal and punishable. The move comes amid the interim government’s resolve to turn India into a cashless economy at the earliest.
In an earlier move to deal with the black money issue, the Modi government made the use of PAN cards mandatory for citizens, while buying jewellery above Rs 2 lakh. A copy of the PAN card will ensure the details of the buyers on record.
According to a report published in the ToI, the government is yet to decide on the SIT’s proposal to bar cash holdings of over Rs 15 lakh because of opposition from people from the trade and industry sector.