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Section 269st

Meet Mody (Student) (112 Points)

04 April 2018

I have hundreds of retailers who through my portal provide services like mobile recharge, utility payments, money transfer, etc to consumers in various parts of the country including rural areas. These consumers pay cash for such services, which is in turn is deposited by my retailers in my current account. Is this deposit in violation of the provisions of sec 269st. I am not receiving cash per se from my retailers, it is being directly deposited in my bank account. Does this make the bank to be the receiver (even though I am the beneficiary) and hence it not being a violation since banking companies are not covered under this section?

Thanks in advance.

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3 Replies

Shaik Sharief (Article Assisant) (87 Points)
Replied 04 April 2018

Section 269st states

1. Person should not recieve more than 200000 in cash.this is to be noted that 200000 limit is per person.

so in given case retailer though is receiving more than 200000 in cash that is from different customers 269st penality shall not be attracted to this transaction.

2. the retailer is depositing the proceeds in the bank .

section 269st provision does not have banks in its ambit . bank can receive any amount in cash per day..

3.the pointo be noted that there is limit on withdrawal of money from bank but not deposit.

we cannot withdraw only 2lacs perday putting all banks together.

Thanks :)

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Meet Mody (Student) (112 Points)
Replied 04 April 2018

Just to clarify it further, when these retailers deposit money in my current account, the bank shall be considered the receiver in this transaction? Although the banks receive cash but it is still being deposited in my bank account and I am the beneficiary.