After the Prime Minister Narendra Modi’s announcement of demonetisation on 8 November, the government may now set a limit on keeping cash at home – between Rs 3 to Rs 15 lakh.
However, being a developing economy, it will be difficult to set a minimum limit to keep the cash. In 2015, the apex court appointed team of experts to fight and recover black money said the limit to keep the cash at home should be set at Rs 15 lakh.
The panel was formed with retired judges and bureaucrats as a special Investigation Team to ensure that the government uncovers which Indians have hid untaxed money in foreign bank accounts.
Narendra Modi’s demonetisation has been criticised by the opposition even with Congress Vice-president Rahul Gandhi termed it as “Modi made Disaster”. West Bengal Chief Minister Mamata Banerjee sought the intervention of President Pranab Mukherjee.
However, according to a TV news channel ABP News, Modi government is soon going to limit the amount of cash one can keep at home. After considering that there were new denomination (Rs 2000) notes were found in crore of rupees, it is expected that this decision is soon going to get implemented.
Modi government appointed a Special Investigation Team (SIT) about the black money and presented its fifth report to the Supreme Court. The report recommends that, no one can keep more than Rs 15 lakh at home. Meanwhile the report also suggested limiting cash exchange up to Rs 3 lakh.
The government is likely to consider both the proposals seriously.
Given, that the general public has been in discomfort, for the last 41 days since demonetisation, in case, the above mentioned rule is implemented, it would create more chaos for the upper middle class and businessman who deal in daily cash.