(a) No branch of a banking company or a co-operative bank, and
(b) No other company or co-operative society, and
(c) No firm or other person,
shall repay any loan or deposit made with it or any specified advance received by it otherwise than by an account payee cheque or account payee bank draft drawn in the name of the person who has made the loan or deposit or paid the specified advance or use of electronic clearing system through a bank account if—
(a) the amount of the loan or deposit or specified advance together with interest, if any, payable thereon is Rs. 20,000 or more, or
(b) the aggregate amount of the loan or deposits held by such person with the branch of the banking company or co-operative bank or, as the case may be, the other company or cooperative society or the firm or other person, either in his own name or jointly with any other person on the date of such repayment together with the interest, if any, payable on such loan or deposits is Rs. 20,000 or more, or
(c) the aggregate amount of the specified advances received by such person either in his own name or jointly with any other person on the date of such repayment together with the interest, if any, payable on such specified advances is Rs. 20,000 or more.
However, where the repayment is by a branch of a banking company or co-operative bank, such repayment may also be made by crediting the amount of such loan or deposit to the savings bank account or the current account (if any) with such branch of the person to whom such loan or deposit has to be repaid.
The Finance (No. 2) Act, 2019 has amended section 269T so as to include such other electronic mode as may be prescribed, in addition to the already existing permissible modes of repayment in the form of an account payee cheque drawn on a bank or an account payee bank draft or the electronic clearing system through a bank account.
(i) Prescribed electronic modes [Rule 6ABBA]
(a) Credit Card;
(b) Debit Card:
(c) Net Banking;
(d) IMPS (Immediate Payment Service);
(e) UPI (Unified Payment Interface);
(f) RTGS (Real Time Gross Settlement);
(g) NEFT (National Electronic Funds Transfer), and
(h) BHIM (Bharat Interface for Money) Aadhar Pay.
(ii) "banking company" for section 269SS and 269T means a company to which the Banking Regulation Act, 1949. applies and includes any bank or banking institution referred to in section 51 of that Act.;
(iii) "co-operative bank" for section 269SS and 269T shall have the meaning assigned to it in Part V of the Banking Regulation Act. 1949;
(iv) loan or "deposit' means any loan or deposit of money which is repayable after notice or repayable after a period and, in the case of a person other than a company, includes loan or deposit of any nature:
(v) "specified advance" means any sum of money in the nature of advance, by whatever name called, in relation to transfer of an immovable property, whether or not the transfer takes place.
1. Section 269T not applicable even for repayment of Loan or Deposit or Specified Advance exceeding Rs. 20,000 by any mode other than account payee cheque / draft if made to certain persons:
As per second proviso to section 269T. the provisions of the sections shall not apply to repayment of any loan or deposit or specified advance taken or accepted from—
(ii) any banking company, post office savings bank or co-operative bank:
(iii) any corporation established by a Central, State or Provincial Act,
(iv) any Government company as defined in section 617 of the Companies Act, 1956;
(v) such other institution, association or body or class of institutions, associations or bodies which the Central Government may for reasons to be recorded in writing, notify in this behalf in the Official Gazette.
2. Consequence of contravention of the provisions of section 269T [Section 271E]:
If a person repays any loan or deposit or specified advance in contravention of section 269T, he shall be liable to pay, by way of penalty under section 271E, a sum equal to the amount of the loan or deposit or specified advance so repaid unless he can prove that there was reasonable cause for doing so.
Any penalty imposable in the above case shall be imposed by the Joint Commissioner.