Dear Sir,
When customer goes to Bank and asks for closure of FD and cash payment, Bank denies for cash payment above Rs 20000/- as per Income tax Rules.
If a person raises a loan on his deposit for Rs 120000/-, The loan is for Rs 100000/-, Can he withdraw the loan proceeds in cash from Bank.
In the Bank circular, it is unclear.Please clarify, in which circular it prevents the cash payment in Loan also above Rs 20000/-.
Muralidhar