DCM (Plg) No.1320/10.27.00/2016-17
The Chairman / Managing Director/Chief
Public Sector Banks / Private Sector Banks/ Private Sector Banks/ Foreign
Regional Rural Banks / Urban Co-operative Banks / State Co-operative Banks
Withdrawal of Legal Tender
Character of existing ? 500/- and ? 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 ? 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allowed to be withdrawn from the bank deposit accounts till December 30,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withdrawn only if the date of marriage is on or before December 30, 2016.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be withdrawn is meant to be used for cash disbursements, it has to be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:
application as per Annex
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.
detailed list of persons to whom the cash withdrawn is proposed to be paid,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.
(P Vijaya Kumar)
Chief General Manager
Encl: As above