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marriages, saying the money can be withdrawn only from the credit balance as on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notifying norms, RBI said the cash withdrawn should be used only to make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 withdrawal of the cash.
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 The amount can be withdrawn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maximum of Rs 2,50,000 is allowed to be withdrawn from bank deposit accounts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there should be "a detailed list of persons to whom the cash withdrawn is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.
November 25, 2016
Kalaivaraikalai
