Need understanding on limit 2 Lakh

Cash payment means ONLY payment with physical money ( currency note)

All other banking mode transactions like online, cards, UPI, cheques etc., have no such limit criteria.

Thanks Dhirajlal for your response. 

This means that if person pay more then 2 Lakh using online mode of payment ( or say Electronic clearning mechanism) , is that fine ? 

I can ask one more over here but not related to cash but some what in same direction about limit. 

Like there is 10 Lakh limit for FD one can create in financial year.  What if person is earning and not created FD for years and there is some accumulated saving (all from valid source). In that case too 10 Lakh limit is there ? 

1. No issue for any amount transferred through ECS.
2. The bank will report to ITD as it is rule but ITD would not penalize if you can explain its source. (generally not asked unless high value transaction)