Soon, they will bring this down to ₹50,000. This isn’t a surprise. This was announced long ago (in FY 2020-21, if I remember correctly). It is only now that the date of implementation is announced.
By the way, as any entrepreneur who does business giving and receiving credit will tell you, this will totally screw up the entire business model, because PDCs will become useless, and IPC Section 138 will be well nigh impossible to be used as a deterrent because it will lose all meaning.
Here’s the explanation in a nutshell: Today, my dealer issues me a post dated cheque of say, ₹12 lakh for stock he has purchased from me. The cheque is, as usual, dated 60 days from the date of purchase. Now, imagine he wants to defraud me. By simply not informing his bank of this cheque, he can make the instrument invalid to the point that the bank won’t bounce it (and therefore give me a chance to lodge a complaint under the Negotiable Instruments Act) but simply won’t accept it. How do I know? This has already been done to me by my dealer.
Long story short, people like me will no longer trust the one instrument, a PDC, on which our businesses run. We’ll, of course, find a way to game it by making multiple invoices for ₹4,99,000 (eventually ₹49,999) and taking separate cheques for each. But seriously, why does the government want to increase our work further?
Ghanta ease of business.
