Promissory note loan amount cash limit

Dear Client

A promissory note is not required to be executed on a non judicial stamp paper. It is ordinarily executed on the appropriate revenue stamp as prescribed under the applicable Stamp Act. The validity of the promissory note depends on compliance with the relevant legal requirements.

There is no specific legal limit under the law governing promissory notes on the amount that may be lent in cash. However, cash transactions may have implications under the Income Tax Act and other applicable laws. Mentioning Aadhaar numbers and mobile numbers is not mandatory for the validity of a promissory note, though complete identification details of the parties and their signatures are advisable to avoid disputes.

You may consult a local lawyer or advocate before executing or relying upon a promissory note.