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No Rs 2.5 lakh for marriages after Dec 30: RBI sets stiff riders for withdrawals for weddings

Currently reading: No Rs 2.5 lakh for marriages after Dec 30: RBI sets stiff riders for withdrawals for weddings
India TV Business Desk, New Delhi [Published on:22 Nov 2016, 8:23:40]

RBI on Monday imposed stiff conditions for withdrawal of up to Rs 2.5 lakh in cash from bank accounts for marriages, stating that the money can be withdrawn only from the credit balance as on November 8, the day demonetisation was announced.

While notifying norms, RBI said the cash withdrawn should be used only to make payment to those persons who do not have bank accounts and the names of such recipients should be mentioned while applying for withdrawal of the cash.

The application for withdrawal should also provide names of bride and groom, their identity proofs, addresses and date of marriage.

The amount can be withdrawn only if the date of marriage is on or before December 30, 2016.

The guidelines issued by the regulator clarifies that only one party – parents of either the bride or the groom, or one of those getting married – can withdraw a maximum of Rs 2.5 lakh. 

With a view to enabling people to perform weddings of their wards, it has been decided to allow higher limits of cash withdrawals from their bank deposit accounts to meet wedding-related expenses, RBI said in a notification.

"A maximum of Rs 2,50,000 is allowed to be withdrawn from bank deposit accounts till December 30, 2016, out of the balances at credit in the account as of close of business on November 8, 2016," the notification said.

"Withdrawals can be made by either of the parents or the person getting married. (Only one of them will be permitted to withdraw)," the notification added. 

The application for withdrawal should be accompanied by evidence of the wedding, including the invitation card, copies of receipts for advance payments already made such as marriage hall booking and advance payments to caterers.

Further, there should be "a detailed list of persons to whom the cash withdrawn is proposed to be paid, together with a declaration from such persons that they do not have a bank account. The list should indicate the purpose for which the proposed payments are being made."

RBI also said banks should encourage families to incur wedding expenses through non-cash means such as cheques or drafts, credit or debit cards, pre-paid cards, mobile transfers, Internet banking channels, NEFT/RTGS and the like.

"Therefore, members of the public should be advised, while granting cash withdrawals, to use cash to meet expenses which have to be met only through cash mode," RBI told banks.

Banks have been asked to keep a proper record of the evidence and produce them for verification by the authorities in case of need.

The scheme will be reviewed based on authenticity or bona fide use thereof, RBI added.

RBI sets stiff riders for withdrawals for weddings- India Tv
RBI sets stiff riders for withdrawals for weddings