banner_ad

Cash deposits on od/current account

This query is : Resolved 
Profile Image

Profile Image

(Querist)
19 March 2015 Dear All,

Please can any one give your answers/rectifications on my below query.

We have deposited cash to our co (our co is pvt ltd) OD A/c for Rs. 3lacs, whether it's attracts any taxes as per companies act or what is the cash limit to deposit, but we have the cash balance in our books.
Profile Image

CA AnKiT BoHrA (AB)

Profile Image

CA AnKiT BoHrA (AB) (Expert)
20 March 2015 it doesnt attracts any penalty.. if the sources of receipt is right....!!!
Profile Image

K R Ramesh

Profile Image

K R Ramesh (Querist)
23 March 2015 Dear Sir,

What is the limit of cash deposits in day to current or occ/od a/c.
Profile Image

Aashok Kumar Sharma online

Profile Image

Aashok Kumar Sharma online (Expert)
18 July 2024 As per the guidelines issued by the Reserve Bank of India (RBI), there are certain limits and regulations regarding cash deposits into current accounts or overdraft (OD) accounts. Here are the key points:

1. **Cash Transaction Limit**: Cash deposits in a bank account (current or OD account) are subject to certain limits to discourage cash transactions and promote digital payments. As of now, the applicable limits are:
- For cash deposits in a current account or OD account, the limit is Rs. 10 lakh per month per account holder.
- Any cash deposit exceeding Rs. 10 lakh in a month may attract scrutiny and may require additional documentation to be provided to the bank.

2. **Purpose of the Transaction**: Banks may also require customers to provide the purpose of such large cash deposits to ensure compliance with Anti-Money Laundering (AML) guidelines and Know Your Customer (KYC) norms.

3. **Documentation Requirements**: Banks may ask for supporting documents, such as invoices, bills, or other evidence of the source of cash, especially for deposits exceeding Rs. 10 lakh.

4. **Penalties for Non-Compliance**: Non-compliance with these guidelines can lead to penalties or adverse action from the bank or regulatory authorities.

It's important to note that these limits and guidelines are subject to change as per RBI regulations and may vary based on the specific circumstances or directives issued by individual banks. Therefore, it's advisable to check with your bank for the most up-to-date information and any specific requirements they may have regarding cash deposits into current or OD accounts.
Profile Image

Aashok Kumar Sharma online

Profile Image

Aashok Kumar Sharma online (Expert)
18 July 2024 As per the guidelines issued by the Reserve Bank of India (RBI), there are certain limits and regulations regarding cash deposits into current accounts or overdraft (OD) accounts. Here are the key points:

1. **Cash Transaction Limit**: Cash deposits in a bank account (current or OD account) are subject to certain limits to discourage cash transactions and promote digital payments. As of now, the applicable limits are:
- For cash deposits in a current account or OD account, the limit is Rs. 10 lakh per month per account holder.
- Any cash deposit exceeding Rs. 10 lakh in a month may attract scrutiny and may require additional documentation to be provided to the bank.

2. **Purpose of the Transaction**: Banks may also require customers to provide the purpose of such large cash deposits to ensure compliance with Anti-Money Laundering (AML) guidelines and Know Your Customer (KYC) norms.

3. **Documentation Requirements**: Banks may ask for supporting documents, such as invoices, bills, or other evidence of the source of cash, especially for deposits exceeding Rs. 10 lakh.

4. **Penalties for Non-Compliance**: Non-compliance with these guidelines can lead to penalties or adverse action from the bank or regulatory authorities.

It's important to note that these limits and guidelines are subject to change as per RBI regulations and may vary based on the specific circumstances or directives issued by individual banks. Therefore, it's advisable to check with your bank for the most up-to-date information and any specific requirements they may have regarding cash deposits into current or OD accounts.
Profile Image

Aashok Kumar Sharma online

Profile Image

Aashok Kumar Sharma online (Expert)
18 July 2024 As per the guidelines issued by the Reserve Bank of India (RBI), there are certain limits and regulations regarding cash deposits into current accounts or overdraft (OD) accounts. Here are the key points:

1. **Cash Transaction Limit**: Cash deposits in a bank account (current or OD account) are subject to certain limits to discourage cash transactions and promote digital payments. As of now, the applicable limits are:
- For cash deposits in a current account or OD account, the limit is Rs. 10 lakh per month per account holder.
- Any cash deposit exceeding Rs. 10 lakh in a month may attract scrutiny and may require additional documentation to be provided to the bank.

2. **Purpose of the Transaction**: Banks may also require customers to provide the purpose of such large cash deposits to ensure compliance with Anti-Money Laundering (AML) guidelines and Know Your Customer (KYC) norms.

3. **Documentation Requirements**: Banks may ask for supporting documents, such as invoices, bills, or other evidence of the source of cash, especially for deposits exceeding Rs. 10 lakh.

4. **Penalties for Non-Compliance**: Non-compliance with these guidelines can lead to penalties or adverse action from the bank or regulatory authorities.

It's important to note that these limits and guidelines are subject to change as per RBI regulations and may vary based on the specific circumstances or directives issued by individual banks. Therefore, it's advisable to check with your bank for the most up-to-date information and any specific requirements they may have regarding cash deposits into current or OD accounts.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now


CCI Pro
Join the CA Students WhatsApp Community for ICAI Updates, Trending Courses & Notes!


Similar Resolved Queries


loading


Unanswered Queries


banner

Trending Online Classes

view all classess

CCI Pro
Meet our CAclubindia PRO Members
Subscribe Now

Follow us
add to google news



Answer Query



Quick Links



Browse by Category




Latest Job Openings

View all
Company
Featured 02 May 2026
Senior Executive

hitesh chandwani & co

Pune

B.Com

View Details
Company
Featured 29 April 2026
Manager- Finance and Compliance

Naveen Fintech Pvt Ltd

Kolkata

CA Inter

View Details
Company
Featured 14 April 2026
GST CONSULTANT

Abhishek G Agrawal & Co.

Korba

CA Final

View Details
Company
Featured 13 April 2026
GST CONSULTANCY

Abhishek G Agrawal & Co.

Korba

CA Final

View Details
Company
Featured 28 March 2026
Accountant

Ashok Amol & Associates

New Delhi

B.Com

View Details
Company
Featured 28 March 2026
CA Final

Ashok Amol & Associates

New Delhi

CA Final

View Details
Company
Featured ARTICLESHIP 19 March 2026
Article Assistant

Gupta Sachdeva & Co. Chartered Accountants

New Delhi

CA Final

View Details
Company
Featured 14 March 2026
Associate CA

N N V Satish&co

Hyderabad

CA

View Details