Understanding Cash Deposit Limits in Savings Accounts

Cash is still a preferred way to transact for many – whether it’s income from a business, money received as a gift or savings you’ve been setting aside over time. A cash deposit is simply the process of adding that physical currency to your bank account. Which then becomes available for withdrawals, transfers or everyday use.

But depositing cash isn’t entirely without rules. Banks in India follow RBI guidelines on cash deposits. These rules set clear limits on how much cash you can deposit at a time. They also define when you need to submit supporting documents. And if your deposits cross a certain limit, your bank is required to report it to the Income Tax Department. So, knowing these rules in advance means no surprises later.

Read and learn more about the cash deposit limits in savings accounts concerning several features, including daily and yearly limits.

Cash Deposit Limit in Savings Account Explained

A cash deposit limit is simply the maximum amount of cash you’re allowed to deposit into your savings account within a given time period – per day or per financial year.

These limits exist for good reason. They help banks and regulators keep an eye on large or unusual cash movements, which can sometimes be linked to tax evasion or money laundering. Staying within these limits keeps your transactions clean and hassle-free. Cross them and you may need to explain where the money came from.

Basically, this limit isn’t there to stop you from using your own money. It’s there to make sure the financial system stays transparent for everyone.

Cash Deposit Limit in Savings Account Per Day in 2026

According to RBI rules, you can deposit up to ₹50,000 without providing your PAN details. A cash deposit above ₹50,000 requires your PAN details or the PAN should be linked to your bank account.

Cash Deposit Limit in Savings Account Yearly

Here’s how the annual cash deposit limit works:

• Step 1: The annual cash deposit limit for a savings account is ₹10 lakh per financial year.
• Step 2: If your total cash deposits cross ₹10 lakh in a year, your bank is required to report this to the Income Tax Department.
• Step 3: Once flagged, the Income Tax Department may send you a notice asking you to explain the source of the funds.
• Step 4: You’ll need to provide documents that justify where the money came from – salary slips, sale proceeds, gifts or any other legitimate source.
• Step 5: If you can’t explain the source satisfactorily, it could lead to tax scrutiny or penalties.

The key takeaway -Depositing large amounts isn’t illegal – but you need to be able to back it up with a paper trail.

Tax Rules for Cash Deposits Above ₹10 Lakhs

Depositing more than the allowed cash limit may attract the attention of the Income Tax Department. Section 269ST of the Income Tax Act also restricts any person from accepting ₹2 lakhs or more in cash from a single person in a day, in a single transaction or across multiple linked transactions. Here’s what you need to keep in mind:

• If you deposit more than ₹10 lakhs in cash in your savings account in a year, it gets reported to the Income Tax Department.
• You’ll need to provide your PAN for such deposits.
• Too many large cash deposits might lead to a tax notice.
• Banks are required to inform the government about these big transactions.

[Source: Cash Deposit Rules – RBI]
[Source: Cash acceptance limit – ClearTax]

Best Practices for Managing Cash Deposits

A little awareness goes a long way when it comes to cash deposits. Here are some simple habits worth following:

• Stay within the annual limit: Try to keep your total cash deposits under ₹10 lakhs in a financial year. It keeps things clean and avoids any unwanted attention.
• Always share your PAN when needed: If you’re depositing more than ₹50,000, have your PAN ready. It’s a small step that keeps your transaction transparent.
• Go digital for big amounts: For large transfers, bank transfers, cheques or UPI are much smoother options. They’re not subject to the same cash deposit rules and leave a clear trail.
• Keep your records handy: Hold on to any documents that show where your money came from – salary slips, sale receipts. If questions ever come up, these can act as justifications and proof. 

Cash deposits are important to maintain a minimum balance in some cases. Staying informed helps you manage money wisely and avoid penalties. If you fall short of funds, Fibe is here to help! 

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FAQs On Cash Deposit Limits in Savings Accounts

1. How often can you deposit large amounts of cash?

There’s no set limit on how many times you can deposit large amounts – as long as each deposit stays within your bank’s daily and yearly thresholds. Just keep in mind that very frequent large deposits can prompt your bank to ask for supporting documents. 

2. Are there restrictions on deposit frequency?

It depends on your bank and account type. Some are flexible, others have stricter internal caps. Best to check with your bank once so you’re not caught off guard at the counter.

3. How much cash can I deposit in my bank account?

You can deposit up to ₹50,000 in one go – no PAN needed. Above that, PAN is mandatory. And if your total cash deposits in a year cross ₹10 lakh, your bank will report it to the Income Tax Department. Keeping proof of income can be helpful in such cases. 

4. What are the new rules for cash deposits?

Here’s what currently applies:

• Cash deposits above ₹50,000 require your PAN
• Total yearly deposits above ₹10 lakh get reported to the Income Tax Department
• Under Section 269ST, accepting ₹2 lakh or more in cash from one person in a single day or transaction isn’t allowed
• Unusual cash activity triggers a Suspicious Transaction Report from your bank

Same rules, same limits – regardless of which bank you’re with.