Cash withdrawal for weddings faces stiff RBI rules
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Mumbai: The Reserve Bank of India (RBI) on Monday imposed stiff conditions for withdrawal of up to Rs2.5 lakh in cash from bank accounts for marriages, saying the money can be withdrawn only from the credit balance as on 8 November, the day demonetisation was announced.
While notifying norms, RBI said the cash withdrawn should be used only to make payment to those persons who do not have bank accounts and the names of such recipients should be mentioned while applying for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 identify proofs, addresses and date of marriage.
The amount can be withdrawn only if the date of marriage is on or before 30 December 2016. 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“A maximum of Rs2,50,000 is allowed to be withdrawn from bank deposit accounts till 30 December 2016, out of the balances at credit in the account as of close of business on 8 November 2016,” the notification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 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 Further, there should be “a detailed list of persons to whom the cash withdrawn is proposed to be paid, together with a declaration from such persons that they do not have a bank account.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”.
The RBI also said banks should encourage families to incur wedding expenses through non-cash means through 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.