Insurance Regulator And Development Authority (IRDA), the national agency of Government of India is planning to modify there guidelines to control black money transactions. To track the source of income, the authorities are planning to make it mandatory to quote the Permanent Account Number (PAN) for paying insurance premium of Rs 50,000 or above via cash.
As of now, it is only mandatory for customers to quote their PAN number for bank deposits above Rs 50000 not for customers making cash payment for insurance premium. But as per the circular issued by the IRDA authorities wef 1st Nov 2011 it is going to be mandatory for the customers to clearly quote their PAN number while making cash deposits of 50,000 or above against the insurance premium. Cash deposit of below Rs 50,000 do not require the PAN to be quoted.
IRDA authorities would be solely responsible to check the accuracy of the PAN details furnished by the customer while making cash payment.
Added to the above guideline, IRDA said that any cash transaction for Rs 10 lakh or above, and integrally connected cash transactions for Rs 10 lakh or above per month, should be reported to the Financial Intelligence Unit-India (FIU-IND) by 15th of every succeeding month.