All you need to know about RBI guidelines to claim withdrawals of Rs 2.5 lakh for marriage expenses

The RBI is encouraging citizens to use electronic payments and bank transfers to carry out their expenses.

ban on currency rs 500 1,000 1000 note modi rbi demonetization black money scrapped new notes 2000 new 500 coins legal tender rbi sit narendra demonetisation cash withdrawn sbi pnb canara bank atm cash counters banks queue rush cash mad — People queue up outside a bank to exchange demonetised Rs 1000 and 500 notes on Nov 17, 2016.IANS

Providing relief to individuals seeking money for wedding expenses amid the liquidity crunch created after Prime Minister Narendra Modi's announcement of demonetizing the use of Rs 500 and Rs 1,000 tenders, the government directed the RBI on Monday to approve banks to disperse withdrawals of Rs 2.5 lakh.

The RBI said, "with a view to enable members of the public to perform and celebrate 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."

However, according to a circular published on its website, the RBI listed a long set of conditions required for an individual to avail of the government's relief measure. The RBI also encouraged citizens to use electronic payments and bank transfers to carry out their expenses and "to use cash to meet expenses which have to be met only through cash mode".

The list of mandatory conditions according to RBI:

1) A maximum of Rs 250000/- is allowed to be withdrawn from the bank deposit accounts till December 30, 2016 out of the balances at credit in the account as at close of business on November 08, 2016.

2) Withdrawals are permitted only from accounts which are fully KYC compliant.

3) The amounts can be withdrawn only if the date of marriage is on or before December 30, 2016.

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

5) Since the amount proposed to be withdrawn is meant to be used for cash disbursements, it has to be established that the persons for whom the payment is proposed to be made do not have a bank account.

6) The application for withdrawal shall be accompanied by following documents:

a) An application as per Annex

b) Evidence of the wedding, including the invitation card, copies of receipts for advance payments already made, such as marriage hall booking, advance payments to caterers, etc.

c) 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.