New Delhi, Aug. 15 -- Cash deposits into a savings account may seem like a routine banking transaction, but large cash deposits can attract regulatory and tax scrutiny. Banks are required to report certain high-value cash transactions, be it withdrawal or deposit, to the income tax department.

Savings Accounts are opened to help people manage their money, which includes withdrawing or depositing cash, making payments etc. These limits exist to track and regulate such transactions, prevent suspicious activities such as tax evasion, money laundering, or the use of unaccounted cash.

Under current regulations, if the total cash deposits in a savings account exceed Rs.10 lakh during a financial year, the bank is required to report this activ...