Today RBI has issued notification to allow withdrawal of ₹ 2,50,000/- for weddings. Earlier, last week Government has said that it will provide relief to people for conducting weddings. However, in absence of any notification confirming the same from RBI, banks were refusing to let customers withdraw under extended cash limits. With more than 1.5 crore weddings expected this wedding season and considering the trouble due to cash crunch in the country after executive order from GOI to delegitimise ₹ 500 & ₹ 1000 currency notes.
RBI has allowed such withdrawals with conditions that-
- Balances can be withdrawn from the credit balance available in the account as on 8th November. Withdrawal will not be permitted from the balance accumulated subsequently.
- Withdrawal will be allowed for the weddings to be conducted before 30th December.
- Only brides/grooms or their parents will be eligible for withdrawing such amount after submitting wedding cards, details of payments to be made in cash and presenting such documents as advance receipts from event booking, etc. that confirms the marriage date.
- Customers shall maintain list of parties paid in cash and submit such details to Banks for withdrawal.
Banks are now allowed to let customers withdraw such amount by maintaining the details of such transactions as evidence for authorities. Also this is a one time option available to people to mitigate the effects of cash crunch due to demonetization.
With this enhanced limits, it is expected to reduce some sufferings of people. However, it has to be seen how far it will be effective as majority of marriages are in remote areas where almost everything in marriage is conducted over cash. Last week, PM Narendra Modi has asked officials to hand over cash to a bride from his constituency (lucky one who sent her request letter to PM). While it was seen as a good gesture from PM that government will be extending helping hands to mitigate suffering of people, it showed the level of disruptions made by demonetization on this wedding season.