The Central Government today notified that the limit on balance to small accounts under the Prevention of Money Laundering (Maintenance and Records) Rules, 2005 is not applicable to to deposits through government grants, welfare benefits and payment against procurements.
The said Rules stipulated limits on monthly and annual aggregate of transactions and balance to small accounts.
As per the rules a “small account” means a savings account in a banking company where—
(i) the aggregate of all credits in a financial year does not exceed rupees one lakh,
(ii) the aggregate of all withdrawals and transfers in a month does not exceed rupees ten thousand, and
(iii) the balance at any point in time does not exceed rupees fifty thousand.
The present notification stated that the limit on balance as per the sub-clause (iii) shall not be considered while making deposits through government grants, welfare benefits and payment against procurements.
Read the Full Text of the Notification Below