How Much Cash Can Be Deposited in Bank

Planning to deposit cash in your bank account? It’s important to know how much cash can be deposited in the bank without trouble. This quick intro helps you understand the limits and avoid any unwanted questions from the bank or tax department.

Why this matters

Depositing big cash sums without checking rules may trigger tax flags or bank queries. A quick check now saves hassle later.

Quick reference – typical safe limits

Here are some common benchmarks to aim for:

• Deposit of ₹50,000 or more in a single day generally requires PAN details.
   
• Deposits totalling ₹10 lakh or more in a financial year in a savings account will be reported.
   
• No fixed cap per deposit, but high frequency large cash deposits draw attention.
   
• Banks may set their own per-transaction and per-day limits for cash deposits.
   

What happens if you cross the usual threshold

If you deposit large cash sums:

• Banks must report to the Income Tax Department if annual deposits exceed ~₹10 lakh.
• You’ll need to explain the source of funds; inability to explain may lead to penalties or tax notices.
• Bank may decline or delay processing very large cash deposit transactions until verification.
   

Real-life example

Sunita receives gift money of ₹8 lakh and wants to deposit it all into her savings account in July. She checks the bank's policy and sees the PAN is linked, then deposits ₹3 lakh today, ₹2.5 lakh tomorrow and keeps records of the gift. She avoids depositing the full amount in one go and carries documentation. Smart move.

Quick tip

Better plan the deposit across days, keep proof of source (gift, sale, inheritance) and ensure your PAN is linked to avoid surprises.