In a bid to combat tax evasion and promote transparency in financial transactions, banks in India have been directed to notify the income tax department about significant cash deposits involving ₹2,000 currency notes above a specified threshold. This reporting requirement falls under the statement of financial transactions (SFT) that banks are mandated to submit annually.
In a surprising move, the Reserve Bank of India (RBI) has recently announced the withdrawal of Rs 2,000 denomination notes from circulation. This decision has raised eyebrows and sparked discussions among the general public and financial experts alike. In this blog post, we will delve into the reasons behind this unexpected step, its potential impact on the economy, and what it means for the common man.
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