The full form of CTR in banking is Cash Transaction Report. A CTR is a mandatory report that banks and financial institutions must file with the Reserve Bank of India (RBI) whenever a customer conducts a cash transaction exceeding a certain threshold. This report is a critical component of the banking system’s efforts to prevent money laundering, fraud, and other illegal financial activities.
Purpose of CTR
The primary purpose of a CTR is to track and monitor large cash transactions that may indicate suspicious activity. By identifying and reporting high-value cash transactions, banks can help the government and law enforcement agencies identify potential money laundering or terrorist financing schemes.
CTR Reporting Threshold
In India, any cash deposit or withdrawal exceeding Rs. 10 lakhs (1 million) in a single day, either individually or cumulatively, triggers the filing of a CTR. This threshold applies to both individual and corporate customers. Banks are required to file this report within 7 working days from the date of the transaction.
Information Included in a CTR
A Cash Transaction Report typically contains the following details:
- Customer Information: Name, address, PAN (Permanent Account Number), and contact details.
- Transaction Details: Date, amount, and nature of the cash transaction.
- Account Information: The type of account involved (savings, current, etc.).
- Transaction Mode: Whether the transaction was a deposit or withdrawal.
Regulatory Compliance
Banks are mandated by the RBI’s Financial Intelligence Unit (FIU) to file CTRs for large cash transactions. Non-compliance with this requirement can lead to penalties, including fines and legal action.