GENERAL KNOWLEDGE

Detailed explanation-1: -The bank shall implement the system for all account holders who issue cheques for amounts Rs 50, 000 or more. The account holder has the choice of also utilising the system for low-value cheques. Banks may consider making the system mandatory for processing all cheques above Rs 50, 000 or more.

Detailed explanation-2: -What is a ‘high-value cheque’? Under the PPS, the RBI had said that the cheques for amounts of Rs 50, 000 and above will have to be compliant with the PPS.

Detailed explanation-3: -The amount that can be deposited in a bank account is capped at Rs. 10 Lakhs. The income tax department may issue an income tax notice to a savings account customer who invests more than Rs. 10 Lakhs in a financial year.