The Reserve Bank of India (RBI), on Monday, approved the withdrawal of Rs 2.5 lakh for wedding expenses, in the midst of the tight liquidity condition created by the government’s demonetization move.
RBI said a maximum of Rs 2.5 lakh can be withdrawn till December 30 if and only if the deposit holder had the required balance in his or her account on November 8, on the day when Prime Minister Narendra Modi announced the cash-replacement scheme.
The amounts can be withdrawn only if the date of marriage is on or before December 30, 2016. RBI has cautioned banks to permit withdrawals only from bank accounts which are fully know-your-customer compliant.
Since the amount proposed to be withdrawn is meant to be used for cash disbursements, it has to be established that the persons for whom the payment is proposed to be made do not have a bank account.
Withdrawals can be made by either of the parents or the person getting married.
The application for withdrawal shall be accompanied by 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.
The application should include detailed list of persons to whom the cash withdrawn is proposed to be paid, together with a declaration from such persons that they do not have a bank account.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.