Wedding Withdrawals upto 250K Allowed

· Payments for Wedding Expenses to Only those who do not have Bank Accounts!

[Ref: RBI/2016-17/145 – DCM (Plg).No.1320/10.27.00/2016-17 dated November 21, 2016]

Subject: Withdrawal of Legal Tender Character of existing Rs.500/- and Rs.1000/- Specified Bank Notes (SBNs) – Cash withdrawal for purpose of celebration of wedding

Please refer to our Circular No. DCM (Plg) No.1226/10.27.00/2016-17 dated November 08, 2016 on the captioned subject.

2. 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. Yet, banks should encourage families to incur wedding expenses through non-cash means viz. cheques /drafts, credit/debit cards, prepaid cards, mobile transfers, internet banking channels, NEFT/RTGS, etc. Therefore, members of the public should be advised, while granting cash withdrawals, to use cash to meet expenses which have to be met only through cash mode. Cash withdrawals shall be subject to the following conditions:

i. A maximum of Rs.250000/- is allowed to be withdrawn from the bank deposit accounts till December 30, 2016 out of the balances at credit in the account as at close of business on November 08, 2016.

ii. Withdrawals are permitted only from accounts which are fully KYC compliant.

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 The amounts can be withdrawn only if the date of marriage is on or before December 30, 2016.

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

v. Since the amount proposed to be withdrawn is meant to be used for cash disbursements, it has to be established that the persons for whom the payment is proposed to be made do not have a bank account.

vi. 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(c) A detailed list of persons to whom the cash withdrawn is proposed to be paid, together with a declaration from such persons that they do not have a bank account.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.

3. 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.

Annex - Application Form

Name of the person making withdrawal:

Amount to be withdrawn:

PAN Number (photocopy to be retained): Address:

Name of Bride and Groom:

Identity proof of Bride and Groom:

(Any valid identity proof, copy to be retained)

Address of Bride:

Address of Groom:

Date of marriage:

Declaration

I ————— (Name) certify that no other person in the Groom’s/Bride’s (strike whatever is not applicable) family is withdrawing cash for the same wedding from your bank or any other bank. I hereby declare that the information provided herein and the enclosures is true and correct and I am aware that any false information makes me liable for action by the authorities.

Signature of the Applicant:

Name:

Date:

Verified by

(Name, signature and seal of the bank official not below the rank of a branch manager)