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RBI issues strict riders on Rs 2.5lakh withdrawal for wedding ceremonies: 7 facts

Wedding Card, Copies Of Advance Payments Made For Booking Marriage Hall And Caterers Will Be Required For Withdrawing Rs 2.5 Lakh From Own Accounts, As Per Stringent Conditions Imposed By RBI On Either Of The Parents To Meet Wedding Expenses.

News Nation Bureau | Edited By : Arshi Aggarwal | Updated on: 22 Nov 2016, 08:29:49 AM
A file photo of Reserve Bank of India

New Delhi:

Wedding card, copies of advance payments made for booking marriage hall and caterers will be required for withdrawing Rs 2.5 lakh from own accounts, as per stringent conditions imposed by RBI on either of the parents to meet wedding expenses.

Four days after the government announced special dispensation for meeting wedding expenses, RBI on Monday issued detailed operating guidelines for banks for dealing with such requests.

Here are the highights:

#Withdrawals will be allowed only from balance available before November 8 decision of the government to demonetise 500 and 1,000 currency notes. 

#Funds can be withdrawn only for th marriages solemnised on or before December 30.

#Banks have also been asked to keep records of all disbursals and drawers will have to submit a list of persons to whom payments will be made out of the funds. People getting married need to maintain a detailed list of persons to whom the cash withdrawn is proposed to be paid, together with a declaration from such persons that they do not have a bank account.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.

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

#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.

#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 said.

The special dispensation was given to ease the cash crunch faced during the ongoing wedding season due to imposition of cash withdrawal restrictions on all bank accounts in the aftermath of the demonetisation decision.

Restrictions were placed as banks are grappling with cash shortage.

(With PTI Inputs)

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First Published : 22 Nov 2016, 08:25:00 AM