Tuesday , 6 December 2016
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Cash Withdrawal For Marriage And Latest On Deposit, Exchange Of Notes

The RBI has come out with operational guidelines for higher cash withdrawal limit of Rs. 2.5 lakh for the purpose of marriage. The RBI has also urged the public that they should use cash only to meet marriage-related expenses in cases where it has to be met through cash mode.

Yesterday, the RBI in its latest update has said that banks have exchanged and got deposits of nearly 5.5 lakh crore in scrapped notes of 500/1,000 denominations. Banks also disbursed Rs. 1.03 lakh crore via ATMs and over the counter between November 10 and November 18, the RBI said.

Here are 5 latest updates: 

1) In its guidelines for withdrawal for marriage purpose, the RBI said a “maximum of Rs. 2.5 lakh can be withdrawn from the bank deposit accounts till December 30 out of the balances at credit in the account as at close of business on November 08, 2016.”

2) The RBI however said that “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.”

3) The RBI also said that “since the amount proposed to be withdrawn is meant to be used for cash disbursements, it has to be established that the persons for whom the payment is proposed to be made do not have a bank account.”

4) RBI also said there would be no charges on withdrawal of cash from POS or point of sales terminal via debit cards and open system prepaid cards issued by banks. The withdrawal limit per day is Rs. 2,000. It will be effective till December 30. ATM charges were waived off earlier.

The RBI has relaxed rules for classifying bad loans for small borrowers, saying they may need more time to repay their loan dues after the government withdrew Rs. 500 and Rs. 1,000 notes. Banks and other financiers will get an additional 60 days for recognising housing, car, farm and other loans up to one crore as substandard, the RBI said in a notification.

5) The RBI said farmers may be allowed to draw up to Rs. 25,000 per week in cash from their loan (including Kisan Credit Card limit) or deposit accounts subject to their accounts being compliant with the KYC norms. Farmers have also been allowed to purchase seeds for the rabi crops using old Rs. 500 notes from government outlets or state, central agriculture university.

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