[1][6DD. [2][Cases and circumstances in which a payment or aggregate of payments exceeding ten thousand rupees may be made to a person in a day, otherwise than by an account payee cheque drawn on a bank or account payee bank draft or use of electronic clearing system through a bank account or through such other electronic mode as prescribed in Rule 6ABBA.]

No disallowance under sub-section (3) of Section 40A shall be made and no payment shall be deemed to be the profits and gains of business or profession under sub-section (3A) of Section 40A where a payment or aggregate of payments made to a person in a day, otherwise than by an account payee cheque drawn on a bank or [3][account payee bank draft or use of electronic clearing system through a bank account or through such other electronic mode as prescribed under Rule 6ABBA, exceeds ten thousand rupees] in the cases and circumstances specified hereunder, namely :

(a) where the payment is made to

(i) the Reserve Bank of India or any banking company as defined in clause (c) of Section 5 of the Banking Regulation Act, 1949 (10 of 1949);

(ii) the State Bank of India or any subsidiary bank as defined in Section 2 of the State Bank of India (Subsidiary Banks) Act, 1959 (38 of 1959);

(iii) any co-operative bank or land mortgage bank;

(iv) any primary agricultural credit society or any primary credit society as defined under Section 56 of the Banking Regulation Act, 1949 (10 of 1949);

(v) the Life insurance Corporation of India established under Section 3 of the Life Insurance Corporation Act, 1956 (61 of 1956);