The panel of Chief Ministers led by Chandrababu Naidu submitted its report to the government on ways and means to usher in a cashless economy.
One of the major suggestions made was to impose a tax on cash payments beyond Rs 50,000. This is an entirely ridiculous suggestion. Money in the bank belongs to the depositor, not the bank.
How can the depositor be fined in the form of a tax for withdrawing, what rightfully belongs to him? Who has the right to dictate to him, how much of his money he should withdraw or keep in his account? Are the banks not fleecing their customers already in the form of various taxes?
If people are taxed for withdrawing more than Rs 50,000 then they would definitely not keep their money in banks anymore and the whole cycle of black money drama would be played out all over again.
What the banks can do is incentivize people for adopting digital transactions, not force people into doing something with money which does not belong to the banks in the first place.
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