Is transferring cash through UPI on behalf of a friend legal?
One of my friends gives me cash every month, around ₹20,000 to ₹30,000, and asks me to transfer the same amount to his account online through UPI. Is this legal? If not, under which law is it prohibited?
Using UPI to transfer money on behalf of a friend is legal as long as the funds originate from a legitimate source and there is no intent to conceal transactions. However, frequent cash deposits and transfers may draw scrutiny under anti-money laundering laws like the PMLA, if deemed suspicious. To avoid complications, it’s best for your friend to deposit the money into their own account, and you should maintain transaction records for transparency. For further assistance, contact your Lawyers.
Transferring money through UPI on behalf of a friend is not illegal if the source of the cash is legal and there is no intent to hide transactions. However, frequent cash deposits and transfers may attract scrutiny under anti-money laundering laws, like the Prevention of Money Laundering Act (PMLA), if they seem suspicious. If your friend's money is legitimate, it is safer for them to deposit it directly into their own account. You should keep a record of transactions to avoid any legal issues.
Receiving cash from a friend and transferring the same amount to their account via UPI may not be illegal if done for legitimate reasons. However, if the transfers are intended to conceal the source of funds or avoid taxes, it could violate the Prevention of Money Laundering Act or the Income Tax Act. It is essential to ensure transparency in these transactions. It is advised to consult an expert lawyer to avoid legal issues. For further legal assistance contact us on our helpline number.
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