Decoding RBI’s clarification on disbursal of loan in cash

RBI vide Circular no DNBR (PD) CC.No.086/03.10.001/2016-17 (Notification), in a bid to align the extant directions with the provisions of Section 269SS and 269T of the Income Tax Act, 1961 has issued Notification which states the following:

  1. The present Directions require high value gold loans of Rs. 1 lakh and above to be disbursed by cheque only.
  2. To align with the requirements of Income Tax Act, 1961, Section 269SS and 269T of the Income Tax Act, 1961, as amended from time to time, would be applicable to all NBFCs with immediate effect.

Read more