Mode of acceptance or repayment of loans and deposits

     The existing provisions contained in section 269SS of the Act, inter alia, provide that no person shall take from any other person any loan or deposit otherwise than by an account payee cheque or account payee bank draft, if the amount of such loan or deposit or aggregate of such loans or deposits is twenty thousand rupees or more. Similarly, the existing provisions of section 269T of the Act, inter alia, provide that no loan or deposit shall be repaid otherwise than by an account payee cheque or account payee bank draft, if the amount of such loan or deposit together with interest or the aggregate amount of such loans or deposits together with interest, if any payable thereon, is twenty thousand rupees or more.

     In the present times many banking transactions take place by way of internet banking facilities or by use of payment gateways. Accordingly, it is proposed to amend the provisions of the said sections 269SS and 269T so as to provide that any acceptance or repayment of any loan or deposit by use of electronic clearing system through a bank account shall not be prohibited under the said sections if the other conditions regarding the quantum etc. are satisfied.

     These amendments will take effect from 1st April, 2015 and will, accordingly, apply in relation to assessment year 2015-16 and subsequent assessment years.

[Clauses 63 & 64]

Electronic clearing through bank accounts now satisfies payment-mode rules for acceptance and repayment of loans and deposits. Amendment to sections 269SS and 269T permits acceptance and repayment of loans and deposits by use of an electronic clearing system through a bank account, so that such electronic bank-mediated transfers are not prohibited by those provisions, subject to the existing conditions regarding aggregate quantum and other requirements; the change applies prospectively to assessments for years after the commencement stated in the amendment.