Study should be made about quantum of cash-withdrawals after lifting of cash-withdrawal limit from current-accounts in banks. It is also necessary because Reserve Bank of India (RBI) has announced removing all restrictions on cash-withdrawals even from savings-accounts in banks from 13.03.2017.
In an era when central government is trying, and rightly so, for a cashless economy, there needs to be proper check on excessive cash withdrawals from bank-accounts to prevent re-emergence of parallel economy of black money and hawala-operations. Income Tax Department can ask banks to provide details of bank-accounts and PAN-numbers where cash-withdrawal in a month has exceeded some stipulated limit. Auditors can be required to mention in their audit-reports about purpose of such heavy cash-withdrawals exceeding some stipulated limit. It should not be difficult because already total annual heavy cash-deposits in bank-accounts are reported to Income Tax Department. Even expenses on occasions like marriages should be cashless for purchases and payments exceeding say rupees 10000.
However public should be made aware and cautioned about any such step required to be taken for reporting excessive cash-withdrawals to Income Tax Department, so that people may voluntarily be making cash-withdrawal from banks according to genuine actual needs rather than burdening Income Tax Department requiring increased number of scrutiny of cases. Prior warning will also prevent unnecessary tension amongst bank-customers on excessive cash-withdrawal from bank-accounts.
Banks may be directed to encourage instruments like Travellers and Gift Cheques in different denominations without charging any bank-commission, apart from abolishing transaction-charges on use of credit and debit cards.
MADHU AGRAWAL