1) The government has reportedly issued orders to both the I-T Department and the banks to keep a track of all monetary transactions involving cash of Rs 2 lakh and above.

2) it is better to have funds transferred in your account by NEFT/ RGTS

3) anybody depositing more than Rs 50,000 in cash in their bank account or third party account has to submit a copy of the PAN card in case the bank account is not seeded with PAN.

Make deposit of money in your account is not illegal at all.

This is how all trade and commerce is running in a country.

Only when someone you do not know deposit the money in your ac/c for no reason then apprehension arises and then it is necessary to inform the bank and police about such deposit.

If the transaction is safe ad is accountability then there can be no problem.

Unaccounted money into yor account will cause you trouble.