RBI eases norms for wedding cash withdrawals
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The Reserve Bank of India (RBI) on Tuesday decided to give some relief to those getting married before December 30. The central bank has eased the norms for getting money from the banks for the purpose of wedding by modifying its circular that was issued on November 21.
The government has put a cap of Rs 2.5 lakh on cash withdrawals for wedding purposes.
According to the modified RBI circular, the person who seeks to withdraw up to Rs 2.5 lakh for the purpose of celebrating marriage will require to produce a "detailed list of persons to whom the cash withdrawn is proposed to be paid, together with a declaration from such persons that they do not have a bank account, where the amount proposed to be paid is Rs 10,000 or more".
"The list should indicate the purpose for which the proposed payments are being made," the RBI circular added.
This means that cash payments less than the amount of Rs 10,000 will not require a declaration from those getting cash payments from the family celebrating marriage that they did not have a bank account.
The previous set of rules issued by the RBI required declarations from all the people involved even in the smallest of transactions that they did not have a bank account and the purpose of the payment.
Apart from the latest modification, the other requirements for withdrawing an amount of Rs 2.5 lakh for the purpose of wedding are as follows:
An application requesting the bank for withdrawal of money
Withdrawals can be made by either the parents or the person getting married
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. #casansaar (PTI - NDTV Profit)
The government has put a cap of Rs 2.5 lakh on cash withdrawals for wedding purposes.
According to the modified RBI circular, the person who seeks to withdraw up to Rs 2.5 lakh for the purpose of celebrating marriage will require to produce a "detailed list of persons to whom the cash withdrawn is proposed to be paid, together with a declaration from such persons that they do not have a bank account, where the amount proposed to be paid is Rs 10,000 or more".
"The list should indicate the purpose for which the proposed payments are being made," the RBI circular added.
This means that cash payments less than the amount of Rs 10,000 will not require a declaration from those getting cash payments from the family celebrating marriage that they did not have a bank account.
The previous set of rules issued by the RBI required declarations from all the people involved even in the smallest of transactions that they did not have a bank account and the purpose of the payment.
Apart from the latest modification, the other requirements for withdrawing an amount of Rs 2.5 lakh for the purpose of wedding are as follows:
An application requesting the bank for withdrawal of money
Withdrawals can be made by either the parents or the person getting married
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. #casansaar (PTI - NDTV Profit)
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