Yes, you can deposit a ₹10 lakh cheque into your bank account. There is no specific legal limit on the amount for an account payee cheque deposit. However, as this constitutes a high-value transaction, the bank may report it to the Income Tax Department to ensure transparency and compliance.
If you deposit more than ₹10 lakhs in cash in your savings account in a year, it gets reported to the Income Tax Department. You'll need to provide your PAN for such deposits. Too many large cash deposits might lead to a tax notice. Banks are required to inform the government about these big transactions.
There is no specific limit on the amount for an account payee cheque. However, the bank may have their own policies regarding large transactions.
While you can deposit checks over $10,000 at any bank or ATM, cashing this requires the bank to report it to the Internal Revenue Service (IRS), a rule for all cash transactions over $10,000. If you need a substantial check, you may also want to consider cashier's checks that the bank guarantees.
NO INCOME TAX ON ANNUAL INCOME UPTO Rs. 12 LAKH UNDER NEW TAX REGIME.
Any cash or check transactions exceeding $10,000, or a series of smaller transactions designed to avoid reporting thresholds (“structuring”), will be reported to the IRS by banks as required by the Bank Secrecy Act.
Financial institutions have to report large deposits and suspicious transactions to the IRS. Your bank will usually inform you in advance of submitting Form 8300 or filing a report with the IRS. The Currency and Foreign Transactions Reporting Act helps prevent money laundering and tax evasion.
₹10 Lakh Limit for Savings Accounts:
If you deposit more than ₹10 lakh in a financial year, the income tax department will receive a report from your bank regarding these transactions.
New Continuous Clearing (2025–26)
Upon deposit, cheques are instantly scanned and sent to the clearing house. The drawee bank must confirm clearance or rejection by 7 p.m. the same day. Hourly settlements begin at 11 a.m., with customers receiving credit within one hour of confirmation.
The cash deposit limit in savings accounts as per income tax is ₹10 Lakh during a financial year. All banks or financial institutions must declare large cash deposits according to Section 114B of the Income Tax Act, 1962.
The ₹10 Lakh Cash Deposit Rule
Under current regulations, if the total cash deposits in a savings account exceed ₹10 lakh during a financial year, the bank is required to report this activity to the Income Tax Department.
That's because the IRS requires banks and businesses to file Form 8300 and a Currency Transaction Report, if they receive cash payments over $10,000. Depositing more than $10,000 will not result in immediate questioning from authorities, however. The report is done simply to help prevent fraud and money laundering.
Note that under a separate reporting requirement, banks and other financial institutions report cash purchases of cashier's checks, treasurer's checks and/or bank checks, bank drafts, traveler's checks and money orders with a face value of more than $10,000 by filing currency transaction reports.
ATMs may have deposit limits, but if you go into the bank there are only two difference for larger checks:
The "$10,000 bank rule" refers to federal laws requiring financial institutions and businesses to report large cash transactions (deposits, withdrawals, payments) of over $10,000 in currency to the government to combat money laundering and financial crimes. Banks file Currency Transaction Reports (CTRs) for cash activity over $10,000, while businesses file Form 8300 for similar payments, both sending info to FinCEN and the IRS to track illicit funds.
For individual cashier's checks, money orders or traveler's checks that exceed $10,000, the institution that issues the check is required to report the transaction to the government. The bank where an individual deposits the check doesn't need to.
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