A recent article on Business Insider India mentions the government’s move to limit the amount of cash in bank accounts to 10,000 rupees ($140).
The article states that in February, the tax department notified banks that the limit would be raised to 20,000, and that by May, the limit could be increased to 50,000.
However, a statement from the Finance Ministry later clarified that banks will not be allowed to open accounts above 20,500 rupees.
According to the Finance Department’s statement, the move to lower the bank account limit was taken in order to combat tax evasion.
The Finance Ministry has also made it clear that it will not accept any deposits above 20 million rupees, which is a threshold it deems “not conducive to effective tax evasion.”