Strict rules for cash withdrawals for wedding

The Reserve Bank of India (RBI) has put in strict rules for withdrawal of cash towards paying the expenses incurred in weddings. 

Besides giving the names of persons to whom cash payments will be made, bank customers will have to establish that the persons for whom the payments are to be made do not have bank accounts. 

Customers can withdraw up to Rs 2.5 lakh in cash from their deposits to meet wedding-related expenses. The amounts can be withdrawn only if the date of marriage is on or before December 30, 2016. Either of the parents or the person getting married can make cash withdrawals. Only one of them will be permitted to withdraw, RBI said. Application for withdrawing money should be accompanied by evidence for the wedding such as invitation card, copies of receipts for advance payments already made for marriage hall booking etc, among other things. 

Banks have to keep a proper record of the evidence and produce them for verification by the authorities if needed. The scheme will be reviewed based on authenticity/ bona-fide use, the central bank added. 

RBI said banks should encourage families to incur wedding expenses through non-cash means such as cheques, drafts, credit and debit cards, prepaid cards, mobile transfers, internet banking channels, etc.

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