Account Finalization for Automobile Dealers
Of course, there is a threshold limit of account finalization for automobile dealers in India. The limit is set by the Reserve Bank of India (RBI) and is currently Rs. 1 lakh.
It means that automobile dealers cannot finalize any account that has a balance of more than Rs. 1 lakh.
1. The RBI introduced this limit in order to prevent money laundering and other financial crimes. The limit applies to all types of accounts, including cash, bank drafts, cheques, and demand drafts.
2. If an automobile dealer receives an amount that exceeds the threshold limit, they must first deposit the amount in a bank account. The dealer can then finalize the account once the amount has cleared.
3. The RBI has also imposed other restrictions on automobile dealers, such as requiring them to maintain proper records of all transactions. These restrictions are designed to ensure that the automobile dealership industry is transparent and accountable.
For more information visit this site: https://www.mca.gov.in/
Here are some of the exceptions to the threshold limit for account finalization for automobile dealers in India:
1. The limit does not apply to accounts that are opened for the purpose of making payments to the government or to statutory bodies.
2. The limit does not apply to accounts that are opened for the purpose of making payments to employees.
3. The limit does not apply to accounts that are opened for the purpose of making payments to suppliers.
For further details access our website: https://vibrantfinserv.com