Quoting PAN number may be mandatory for cash transactions above Rs.30,000
Unwilling to lose the momentum it gained for a less-cash economy after demonetization and restrictions on cash withdrawals, the government may announce big disincentives in the upcoming Budget for usage of cash.
The government may reduce the threshold for quoting PAN card for cash transactions, say sources.
The threshold, which is Rs 50,000 now, may be brought down to Rs 30,000 to bring more transactions within formal economy. Sources say the threshold for quoting PAN Card details for merchant transactions can also be reduced.
In addition to these steps, the government may also announce cash-handling charges for cash payments above a certain limit.
These measures will help the government stay on track towards a less-cash economy as there are concerns that easing of cash-withdrawal limits at banks and ATMs might take the economy back to the pre-demonetisation prevalence of cash.
Also, these steps may seem necessary to promote a less-cash economy as digital payments cannot be encouraged through apps and PoS alone due to the poor state of infrastructure and lack of digital literacy in the country.