Modi to Tighten Screws for the Cash-Less Economy!

The Union Government is not keen on losing the momentum it gained for a less-cash economy after demonetization and is keen on making more moves to discourage cash transactions. Buzz is the government may announce big disincentives in the upcoming Budget for usage of cash.

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The first will be to reduce the reduce threshold for quoting PAN card for cash transactions. Currently one should quote PAN card number for cash transactions more than 50000 and now it will be brought to 30000. The threshold for quoting PAN Card details for merchant transactions can also be reduced.

On the other side, the government is also mulling to announce cash-handling charges for cash payments above a certain limit. It has to be seen if the upcoming budget will also have some incentives for those who are transacting cash-less.