Mumbai: The Reserve Bank of India RBI on Monday imposed stiff conditions for withdrawal of up to Rs 2.5 lakh in cash from bank accounts for marriages, saying the money can be withdrawn only from the credit balance as on 8 November, the day demonetisation was announced.
While notifying norms, RBI said the cash withdrawn should be used only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
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can be withdrawn only if the date of marriage is on or before 30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"A maximum of Rs 2,50,000 is allowed to be withdrawn from bank deposit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withdrawn is proposed to be paid, together with a declaration from such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.
