These sections were introduced in order to prohibit cash transactions and promote digital transfers.
Section 269ss:- This section prohibits receiving or accepting any loan or deposit of Rs.20,000 or more other than an account payee cheque or electronic clearing system.
For example– If Mr X wants to take a loan of Rs.10,000 and a deposit of Rs. 15,000 in cash from Mr. Y. Here section 269ss gets attracted and a penalty will be levied as the total loan or deposit from a person in cash exceeds Rs. 20,000.
penalty:- Violation under this section will attract a penalty under section 271D which is equal to 100% of the loan or deposit taken or accepted.
Section 269t:- This section prohibits payment of any loan or deposit along with interest of Rs. 20,000 or more other than an account payee cheque or electronic clearing system.
Penalty:- Violation under this section shall be liable to a penalty u/s 271E which is equal to the amount of the loan repaid.
This section is not applicable to:-
· Government
· Any banking company
· Any post office or cooperative bank
· Any government company as defined in clause 45 of section 2 of the companies act, 2013.
· Such other institution, or association as may be notified in the official gazette.