RBI’s Stiff Terms to Withdraw Rs 2.5 Lakh for Weddings Face Flak

Withdrawals can be made by either one of the parents or the person getting married.

People wait outside banks to exchange currency notes. (Photo: IANS)

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stiff conditions for withdrawal of up to Rs 2.5 lakh in cash from bank accounts for weddings, saying the money can be withdrawn only from the credit balance as on the day demonetisation was announced on 8 November.

A maximum of Rs 2,50,000 is allowed to be withdrawn from bank deposit accounts till 30 December 2016, out of the balances at credit in the account as of close of business on 8 November 2016.

RBI Notification

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

The application for withdrawal should be accompanied by evidence of the wedding, including the invitation card and copies of receipts for advance payments already made.

Moreover, there should be "a detailed list of persons to whom the cash withdrawn is proposed to be paid, together with a declaration from such persons that they do not have a bank account.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 notification added.

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

The RBI also said banks should encourage families to make wedding expenses through non-cash means like cheques or drafts, credit or debit cards, pre-paid cards, mobile transfers, and internet banking channels.

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(With inputs from IANS)