RBI Weddings

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The Conditions Of RBI To Withdraw Rs 2.5 Lakh For Weddings Show How They Are Unaware Of Reality

The Logical Indian

November 22nd, 2016

SHARES

Source: Hindustan Times | Image Courtesy: ipleaders | india

Government’s surprise announcement on invalidation of the country’s most circulated currency notes has become an inconvenience for many citizens. Many people have lost their lives standing in the long serpentine queues while many died because of the hospitals, chemist and ambulances’ refusal for taking old notes. It has also been a nightmare for people whose wedding dates were on the date after the move was announced. Marriages got cancelled and soon to be groom or bride were seen on standing in the queue of banks/ATMs to exchange notes. Though the government has announced çoncessions for families with imminent weddings, let’s see how much relief it gives to the people.

The RBI’s circular on Monday has provided guidelines for people who are in desperate need of money to conduct their weddings. But the criteria stated in the circular by the RBI doesn’t seem to make marriages feasible. And it seems that people prefer to put a halt on their marriages.


The circular issued by RBI states that:

  • The withdrawal is only allowed from the balance available before November 8.
  • Only parents or the person getting married who has full KYC (know your customer) norm compliant can withdraw money from the account.
  • The application for withdrawal should provide names of bride and groom, their identity proofs and the date of marriage.
  • Wedding cards, copies of advance payments made for booking marriage hall and caterers will also be required to withdraw this amount.
  • The cash withdrawn should be used only to make payments to people who have no bank accounts, and the name of such people should be mentioned in the application forms with a declaration from them that they do not have a bank account.
  • Further, the amount can only be withdrawn if the date of marriage is on or before December 30, 2016.

Banks have encouraged families to incur expenses through cheques or drafts, credit or debit cards, internet banking channels, etc. Also, banks have been asked to keep a proper record of the evidence and produce them for verification by the authorities.

Weddings in rural areas and even cities are conducted with money borrowed from family, friends, and sometimes from banks. With cash crunch everywhere, it is unlikely that friends can help unless they were successful in exchanging money.  Even when the families reach the banks, they are being refused money on the grounds of the banks not receiving the RBI circular. Even if somehow the family is able to procure Rs 2.5 lakh from the bank, is this really enough money for a wedding?


The Logical Indian feels that the guidelines circulated by RBI are very stringent and do not ease the issues of families who are in a desperate need of money for the wedding.


RBI circular:
https://rbi.org.in/Scripts/BS_CircularIndexDisplay.aspx?Id=10729

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