In the Budget presented on 5 July, the Finance Minister proposed 2% tax deduction at source on cash withdrawals above ₹1 crore from one or more accounts, to discourage high-value cash withdrawals.
The Finance Bill, 2019 provided that any bank, co-operative society carrying on the business of banking, or post office responsible for paying a sum in cash exceeding ₹1 crore during the previous year shall deduct an amount equal to 2% of the sum exceeding ₹1 crore as income tax.