In India, there is no fixed “upper cap” on how much cash you can deposit in a bank, but deposits beyond certain thresholds are reported to the Income Tax Department and can invite scrutiny if your income does not justify them.

Quick Scoop

  • There is no absolute legal maximum on cash you can deposit, but big cash deposits are reported and tracked.
  • For savings accounts , cash deposits of around ₹10 lakh or more in a financial year typically get reported to the Income Tax Department for verification of source.
  • Any single cash deposit of ₹50,000 or more usually requires your PAN (or Form 60 if you don’t have a PAN).
  • Banks may also have operational per‑day limits (for example, ₹50,000–₹1,00,000 as a normal limit, and up to about ₹2,50,000 in special cases), mainly to manage risk and compliance.
  • For current accounts , much larger cumulative deposits (for example, up to around ₹50 lakh a year) may be allowed before strict reporting kicks in, though this varies by bank.

Think of it this way: the law doesn’t stop you from walking into a branch with a suitcase of cash – but it will ask, “Where did this come from?” if the amount looks out of sync with your declared income.

1. Key limits you should know

a) PAN requirement and single‑day limits

  • Cash deposit above ₹50,000 in one go → PAN or Form 60 is mandatory.
  • Many banks treat ₹50,000 per cash transaction as a basic threshold for enhanced monitoring.
  • Some banks set their own daily operational caps for savings accounts, for example:
    • “Normal” cash deposit limit around ₹50,000–₹1,00,000 per day.
    • With special approval, deposit up to about ₹2.5 lakh in a day.

These operational caps can differ from bank to bank, so the exact figure is a bank policy , not a single law.

2. Annual cash deposit “red‑flag” levels

a) Savings accounts

  • Commonly cited threshold: cash deposits of ₹10 lakh or more in a financial year in one or more savings accounts can be reported to the Income Tax Department.
  • This does not mean:
    • You pay tax automatically at ₹10 lakh.
    • You are forbidden to deposit above ₹10 lakh.
  • It does mean:
    • Your transactions may be flagged for verification.
    • If your declared income does not match this pattern, you might get a notice asking for explanation and proofs of source (salary slips, sale deeds, gift deeds, etc.).

b) Current accounts

  • For business/current accounts , thresholds are much higher; guidance from Indian banks often refers to about ₹50 lakh cash deposits in a year as a level where closer scrutiny starts.
  • Above this, banks have to report and justify unusual cash activity to regulators.

3. What actually happens if you exceed these levels?

When you cross the usual “comfort zone” (for example, ₹10 lakh cash in savings in a year), three things can happen:

  1. Automatic reporting
    • Banks send periodic reports of “high‑value” transactions (like large cash deposits) to the Income Tax Department.
  1. Possible income‑tax notice
    • If your ITR income looks too low compared to the cash flow, the department can send a notice asking you to explain the source.
 * You need to show documents: sale of property, agricultural income, business cash sales, gifts with proof, etc.
  1. Penalties only if income is unexplained
    • Merely depositing a large amount is not illegal.
    • Problems come if the amount is unexplained or hidden income – then tax, interest, and penalties can apply under the Income Tax Act.

A simple illustration: if you sold a bike for ₹70,000 in cash and deposited it with a proper sale receipt, that’s very different from putting ₹70,000 every week with no documentation and low declared income.

4. International note (for context)

  • In many countries, banks must report cash deposits of over the local reporting limit – for example, more than the equivalent of about USD 10,000 in one go triggers a report to financial‑crime authorities.
  • Breaking one large deposit into many smaller ones just to avoid reporting is often treated as “structuring” and can itself be an offence in those jurisdictions.

This global trend is why Indian rules too are moving towards data‑driven monitoring rather than strict hard caps.

5. Practical tips to stay safe

  • Always use PAN for large deposits. This keeps your transactions clearly linked to your tax identity.
  • Keep proofs for all big cash receipts – sale documents, gift deeds, loan agreements, business books, etc.
  • Match deposits with your ITR : if you routinely deposit far more cash than your declared income, expect questions.
  • Prefer digital modes (NEFT/RTGS/IMPS/UPI) for very large amounts when possible; they are easier to explain and less likely to look suspicious.
  • For business, talk to your CA or tax advisor about cash vs digital collections and how they appear in your books.

6. Mini FAQ

Q1. Is there a legal maximum cash deposit in bank?
No fixed “maximum” – you can deposit more than ₹10 lakh or even higher, but large deposits are reported and can be questioned if not supported by your income and documents.

Q2. How much cash can I deposit without PAN?
Up to ₹50,000 in a single cash deposit – beyond that, banks require your PAN or Form 60.

Q3. How much cash can I deposit in a year in savings without attracting attention?
Broadly, keeping cumulative cash deposits under around ₹10 lakh in a financial year reduces the chances of automatic flags, but the real test is whether you can explain the source.

Q4. Can I deposit ₹5–₹6 lakh at once?
Yes, but you’ll definitely need PAN , and, depending on your profile, it may be noted in bank and tax records.

Q5. Is depositing cash taxable?
The deposit itself is not taxable. What is taxable is undisclosed income that the deposit represents, if you can’t justify it.

Bottom line: You can deposit large amounts of cash into your bank, but once you start touching ₹50,000 in a single transaction or around ₹10 lakh in a year in savings, you’re in the “explain it clearly” zone rather than the “no‑one‑will‑notice” zone.

Information gathered from public forums or data available on the internet and portrayed here.