Anonymity in rupee transaction

Subject: Economy

Context:

Reserve Bank of India (RBI) has said the e-Rupee transactions are anonymous, on-ground implementation is not clear on this front.

E Rupee and anonymity

The person making the payment and the one receiving it will get an SMS from the respective banks whose e-Re apps are used for the transaction.
Issuing such messages is presently mandatory under the law for any digital transaction and e-Re is no exception and the bank which is issuing the message has the transaction trail.
While the wallet-to-wallet transactions are said to be anonymous.
But when a user is transfering money into the wallet or removes money from the wallet to his/her bank account, these transactions reflect on the bank statement of the user.

Anonymity in cash holdings:

The Central Board of Direct Taxes (CBDT) in 2022 by amending the Income Tax Rules, 1962 made PAN or Aadhaar mandatory:
- Cash deposit or withdrawal exceeding ₹20 lakh in one or more bank accounts or the post office in a financial year.
- This requirement also covers deposits and withdrawals from cooperative banks.
- The ₹20 lakh threshold is for the aggregate of all deposits or aggregate of all withdrawals in a year.
- Opening of a current account or cash credit account with a bank or post office.
- The permanent account number or Aadhaar number along with demographic information or biometric information of an individual shall be submitted to the Principal Director General of Income-tax (Systems) or Director General of Income-tax (Systems) or the person authorised by the Principal Director General of Income-tax (Systems) or Director General of Income-tax (Systems) with the approval of the Board, for authentication referred to in section 139A.
PAN is also mandatorily required in case of cash deposit exceeding Rs 50,000 in a single day.