FCRA Dos and Don’ts

5. Do Not encourage Cash Withdrawals

Our Interpretation*

1. Yes, Cash is most suspicious area. Avoid Cash Payments.
2. This requires extra efforts on the part of the organization to develop Financial Control System in such a way to encourage Bank Payments through “Account Payee” cheques only.
3. Also note that Cash Expenses and withdrawals limit mentioned in this circular is Rs. 20000/-