The Reserve Bank of India yesterday issued notification on Disbursal of loan amount in cash. The Non-Banking Finance Companies (NBFC) cannot disburse more than Rs 20,000 in cash against gold loans, the RBI notification said.
The RBI said in the notification that, with immediate effect, loans amounting to Rs. 20,000 and above can be disbursed only by cheque as against the earlier threshold of Rs. 1 lakh and above.
“On review, and in line with the rules issued under Sections 269SS and 269T of the Income Tax Act, 1961, the requirements under the Income Tax Act, 1961, as amended from time to time, would be applicable to all NBFC with immediate effect. Currently, the relevant threshold under the Income Tax Act, 1961 is Rupees Twenty thousand. Accordingly, para 37(iii)(b) of the above Master Directions stands deleted and the above provision stands incorporated at para 104 and 117, respectively, in the Master Directions referred above”, the notification also said.
Subscribe Taxscan Premium to view the Judgment
