Tuesday, 22 November 2016

RBI's stiff conditions for Rs2.5 lakh withdrawal for weddings -The Total Investment & Insurance Solutions

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22 November 2016

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stiff conditions for withdrawal of up to Rs 2.5 lakh in cash from bank accounts for weddings, saying the money can be withdrawn only from the credit balance as on the day demonetisation was announced on November 8. The Total Investment & Insurance Solutions

"A maximum of Rs2,50,000 is allowed to be withdrawn from bank deposit accounts till December 30, 2016, out of the balances at credit in the account as of close of business on November 8, 2016," the Reserve Bank of India notification said. The Total Investment & Insurance Solutions

"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 Total Investment & Insurance Solutions

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Moreover, there should be "a detailed list of persons to whom the cash withdrawn is proposed to be paid, together with a declaration from such persons that they do not have a bank account.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 identify proofs, addresses and date of marriage. The Total Investment & Insurance Solutions

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. The Total Investment & Insurance Solutions


"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 advised the banks.The Total Investment & Insurance Solutions

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