Change is the only constant in the BJP's digital drive.

NDTV: The government now says cash transactions should be capped at Rs 2 lakh, not Rs 3 lakh, says government. 

Any cash transaction of more than Rs 2 lakh should be penalised at 100 per cent, the government has proposed today.

In his budget presented in February, Finance Minister Arun Jaitley had said cash transactions would be capped at Rs. 3 lakh. The government wants to reduce the limit to Rs. 2 lakh.

The proposal is aimed at curbing black money.

Last month, the government imposed a cap on cash transactions above Rs 3 lakh, taking forward the agenda to move towards a cashless economy. The decision, which comes into effect starting April 1, 2017, is based on the recommendations of Special Investigation Team (SIT) on Black money.

The Budget documents pointed out that in India, the quantum of domestic black money is huge, which adversely affects the revenue of the government, thereby creating a resource crunch for its various welfare programmes. Further, it added that black money is generally transacted in cash and large amount of unaccounted wealth is stored and used in form of cash.