1. Demonetisation: Wedding withdrawal of Rs 2.5 lakh cleared by RBI, but get set for more pain

Demonetisation: Wedding withdrawal of Rs 2.5 lakh cleared by RBI, but get set for more pain

The Reserve Bank of India (RBI) on Monday imposed stiff conditions for withdrawal of up to R2.5 lakh in cash from bank accounts for marriages, saying the money can be withdrawn only from the credit balance as on November 8, the day demonetisation was announced.

By: | Mumbai | Published: November 22, 2016 6:10 AM
Demonetisation, Currency Chaos, Government, Note Ban, Black Money, Economy The rupee had staged a smart rebound against the US dollar to end higher by 12 paise at 67.82 in yesterday’s trade on fresh selling of the greenback by exporters and banks. (Source: PTI)

The Reserve Bank of India (RBI) on Monday imposed stiff conditions for withdrawal of up to R2.5 lakh in cash from bank accounts for marriages, saying the money can be withdrawn only from the credit balance as on November 8, the day demonetisation was announced.

The RBI also said cash withdrawn should be used only to make payment to those persons who do not have bank accounts and names of such recipients should be mentioned while applying for withdrawal of 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 The amount can be withdrawn only if the date of marriage is on or before December 30.

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

(Only one of them will be permitted to withdraw), the central bank said on Monday in a notification.

The central bank also said banks should encourage families to incur wedding expenses through non-cash means of cheques /drafts, credit/debit cards, prepaid cards, mobile transfers,

internet banking channels and NEFT/RTGS, among others.

“Banks shall 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/bona fide use thereof,” the RBI said.

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