Rs 2.5 lakh cash withdrawal allowed for weddings: All you need to know

0
310

November 22, 2016

MUMBAI – Only one person per family with an upcoming wedding on or before December 30, 2016, can withdraw up to Rs 2.5 lakh, the Reserve Bank of India said in a statement on Monday.

Demonetization: Crowds queue up at banks, petrol pumps to exchange money

November 22, 2016

MUMBAI – Only one person per family with an upcoming wedding on or before December 30, 2016, can withdraw up to Rs 2.5 lakh, the Reserve Bank of India said in a statement on Monday.

Demonetization: Crowds queue up at banks, petrol pumps to exchange money

The RBI came out with guidelines to be followed by banks while disbursing funds for marriage functions.

Earlier this week, the Centre had announced that banks may allow a maximum withdrawal of Rs 2.5 lakh by such families. The government had encouraged families to incur wedding expenses through cheques or digital means.

They will have to sign a self-declaration document saying the money will be drawn against only one account – that of the father, mother, groom or the bride.

But banks were unable to disburse funds under this facility, as there were no operational guidelines.

Here’s a look at the RBI guidelines.

1. A maximum of Rs 2.5 lakh is allowed from the bank accounts till December 30.

2. The amounts can be withdrawn only if the date of marriage is on or before December 30.

3. Only one person per family (either of the parents or the person getting married) will be permitted to withdraw.

4. Since the amount to be withdrawn is meant for cash disbursements, it has to be established that the people who will get the payments do not have a bank accounts. For example, if the customer has to pay for catering, then the caterers have to declare that they don’t have bank accounts.

5. The following documents have to be attached with the application:

Evidence of the wedding, for example, invitation card.

Copies of receipts for advance payments already made, such as booking receipts of marriage halls, advance payment receipts to caterers.

A detailed list of persons to whom the cash withdrawn is proposed to be paid.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

6. The account holder has to be fully KYC (know your customer) norm compliant.

Banks will be required to record evidence and produce them for verification if needed.

Also, “banks should encourage families to incur wedding expenses through non-cash means viz. cheques /drafts, credit/debit cards, prepaid cards, mobile transfers, internet banking channels, NEFT/RTGS, etc. 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 added.


Courtesy: HT