"The special investigation team set up by the government on black money has suggested that no transaction above Rs 3 lakh should be permitted in cash. It should be perfectly allowable if an individual deals in cash if he pays all the statutory taxes and duties. The budget proposal signals the government's resolve to clamp down on cash transactions on a long-term basis and bring India into a coven of nations that limit cash transactions. Black money is generally transacted in cash and huge amount of unaccounted wealth is stored and used in cash," the budget documents said. The provision means that an individual's ability to use cash is being curbed only moderately as he can make multiple transactions of Rs 3 lakh to multiple merchants.

Source: The Telegraph February 01, 2017 22:23 UTC