The Special Investigation Team (SIT), formed on the directions of Supreme Court, had provided two recommendations; one was to limit cash transactions at Rs 3 lakh and the other to bar individuals and companies to keep 15 lakh or more cash with them at any given point of time. While the government has accepted and implemented the first recommendation, it is still discussing the possibility of banning Rs 15 lakh cash holdings. The government is currently evaluating reports and feedback from various entities and might take a decision soon.
The government has not yet accepted the Rs 15 lakh ban because it feels that genuine people such as traders and contractors would be adversely affected by this ban. Further, the implementation of this ban will also be a problem, as tax inspectors then will have the power to check anyone’s home anytime they want. This could lead to misuse of power, something that the government wants to avoid. The common people can also be affected, as amounts of Rs 15 lakh are commonly used on occasions such as marriage ceremonies.
However, there’s a possibility that the government can increase the limit, something like Rs 20 lakh or Rs 25 lakh and then implement such a ban. The government’s position will become clear in the coming days.