16/06/2022
No person shall accept, from any other person, loan, deposit or any specified sum otherwise than by A/c payee
cheque, bank draft or use of ECS through a bank account or through such other electronic mode as may be
prescribed, if:
The amount of such loan, deposit or specified sum or the aggregate amount of such loan, deposit and specified
sum exceed Rs. 20,000 or more.
Or
On the date of accepting such loan, deposit or specified advance, amount remaining unpaid or the aggregate
amount remaining unpaid exceed Rs. 20,000 or more.
Or
Amount or aggregate of amount referred to in clause (a) together with amount or aggregate of amount in clause
(b) exceeds Rs. 20,000 or more.
In other words, accepting loan in cash or through bearer cheque or crossed chequeis permitted up to Rs. 19,999.
In recent amendments, Finance (No. 2) Act, 2019 substituted the term ‘bank account with ‘bank account or
through such other electronic modes as may be prescribed. These such other electronic modes are notified by
Ministry of Finance as the following:
(a) Credit card
(b) Debit card
(c) Net Banking
(d) IMPS (Immediate Payment Service);
(e) UPI (Unified Payment Interface);
(f) RTGS (Real Time Gross Settlement);
(g) NEFT (National Electronic Funds Transfer); and
(h) BHIM (Bharat Interface for Money) Aadhar Pay
