January 19, 2017
In its efforts to expedite India’s transition into a cashless economy, the government may implement a range of measures to discourage cash transactions. One of these measures may be making it mandatory to quote PAN for cash transactions as low as Rs. 30,000. At present, people only need to quote their Permanent Account Number (PAN) for cash transactions of Rs.50,000 or above. However, various sources are indicating that the government intends to lower this threshold so that people are encouraged to go cashless. This will also help in ensuring that a large percentage of cash transactions are brought within the formal economy.
The government also plans to implement other measures that will refrain people from all forms of cash transactions. These measures may be announced in the upcoming annual budget for the fiscal year 2017 – 2018.