The Reserve Bank of India (RBI) has clear guidelines on per day and per year savings account cash deposit. Though there is no limit to how much money you can keep in your savings account, you need to know the official requirements.
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There is no official limit on the amount of money that you can have in your savings account. There are however some official checks on deposit limit, per day transaction and per financial year transaction.
Let's have a look at how much money you can deposit in your savings account, how many financial transactions you can do, and what your tax obligations are.
As per RBI guidelines, you can deposit up to Rs 50,000 into your Savings Account without showing PAN details, but for higher limits you will be required to furnish your PAN card.
The per day/ per transaction/ per person cash limit is Rs 2 lakh in Savings Account.
The income tax department must be notified of certain high-value cash deposits, financial transactions, payments, etc. in savings accounts made in a year. Taxpayers can lessen their chance of receiving income tax notices and feel more confident when navigating the banking system by proactively revealing high-value transactions and following tax regulations.
Cash deposits in one or more of a person's accounts totaling ten lakh rupees or more within a fiscal year must be reported to the Income Tax Department. The Post Master General and banking institutions or cooperative banks are the designated reporting entities for such cash deposits.
Any fixed deposits made into accounts that exceed ₹10 lakhs within a fiscal year must be reported to the ITD. If the total amount placed in one or more fixed deposits surpasses the designated limitations, banks must report the transactions.
Meanwhile, it is important to know that your bank savings accounts is insured by deposit insurance and credit guarantee corporation (DICGC). Each depositor in a bank is insured upto a maximum of Rs 5,00,000 (Rupees Five Lakhs) for both principal and interest amount held by him in the same right and same capacity as on the date of liquidation/cancellation of bank's licence or the date on which the scheme of amalgamation/merger/reconstruction comes into force.
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