Ban on cash transaction above Rs 2 lk not applicable to withdrawals from banks, post office

New Delhi, Apr 6 (KNN) The Central Board of Direct Taxes (CBDT) has said that the ban on cash transactions of more than Rs.2 lakh a day will not be applicable to withdrawals from banks, post office savings accounts and cooperative banks.

The Finance Act 2017 called to impose a penalty equal to the transacted amount on those who violated the rule restricting cash transactions.

It also mentioned that no one can deal in cash in excess of Rs 2 lakh a single day, in respect of a single transaction or transactions relating to one event or occasion.

The restrictions will also not apply to any receipt by government, banking company, post office savings bank and cooperative bank, the CBDT said in a statement.

A notification will be issued to implement this change.