Credit card bill payment exempt from cash dealing limit of Rs.2 lakh

Revenue department has said that restrictions on cash dealings of two lakh rupees or more will not apply to credit card bill payments, business correspondents appointed by banks and issuers of prepaid instruments. The Finance Act 2017 banned cash transaction of 2 lakh rupees or above with effect 1st of April this



year. 

The move to ban cash transaction above a threshold was aimed at curbing black money by discouraging cash transaction and promoting digital economy. However, some exceptions were made. Through a notification, the Income Tax Department has exempted five entities from the purview of this Section.