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New Cash Withdrawal Rules For Weddings And Loans?

    IndianMoney.com Research Team | Tuesday, November 22,2016, 01:14 PM
 

 

Ever since the Government scrapped 500 and 1,000 rupee notes, effective November 8th 2016, to check black money in the economy, there have been long queues at banks and ATM’s.  It is the wedding season in India. Traditionally the wedding season in India, starts in late September and goes up to December. Weddings in India cost a lot of money. Now, the Government had imposed curbs on ATM withdrawals. You are allowed to withdraw only INR 2,500 a day from an ATM. This is INR 2,500 a day, per card. You can withdraw INR 24,000 a week, from your bank account at the bank. Hardly enough for a wedding in these costly times.

Now the Government has come up with cash withdrawal measures, to ease the burden on couples, getting ready for their big day. Let’s take a look at what the Government is doing, to make your BIG DAY, really memorable. Want to know more on tax planning and loans. Just leave a missed call on IndianMoney.com financial education helpline 02261816111 or just post a request on IndianMoney.com website. IndianMoney.com offers Free, Unbiased and on-call financial advice on Insurance, Mutual Funds, Real Estate, Loans, Bank Accounts and capital markets.

Rules on cash withdrawal for marriages

Celebrating your wedding before December 30th 2016….Take a look at these new rules. Families celebrating weddings, can withdraw up to INR 2,50,000 in cash, from the bank. But…these bank accounts need to be KYC compliant. The money can be withdrawn either by you (for your marriage), or even by your parents. Only one (either you or parents), can withdraw INR 2,50,000 in cash, from the bank. This rule applies separately for the boy and the girl. You/Parents have to furnish PAN details, while making a cash withdrawal of INR 2,50,000, at the bank. You/parent will have to give a self declaration, saying that only one person of his/her family, is withdrawing this amount.

You have to submit evidence of the wedding such as invitation card, copies of the receipts for advance payments such as wedding hall booking and caterers. You have to give a detailed list of people, to whom you have to pay in cash, using the money from the cash withdrawal of INR 2,50,000 from the bank. You have to give the reason (purpose), for making these payments. You also have to give a declaration, that the person you are paying in cash, does not have a bank account.

The Government wants you to use the money you have withdrawn, only for wedding expenses, where payment has to be made in cash and the person you are paying, does not have a bank account. If possible make payments for wedding expenses, using NEFT/RTGS, debit/credit cards or even cheques and drafts.

Borrowers get extra time to repay loans

You have availed a car loan and a home loan from the bank. After the scrapping of 500 and 1000 rupee notes, cash withdrawal limits have been imposed at banks and ATM’s. You might struggle paying the EMI on your car loan and home loan.Borrowers are struggling to pay EMI’s on their car loan, home loan and farm loan, as they cannot withdraw cash easily. The RBI has given you and other borrowers an additional 60 days, to repay home loans, car loans and even farm loans, up to INR 1 Crore.

This is applicable for loans which are payable between November 1st 2016 and December 31st 2016. Borrowers mainly have to pay EMI’s, in the first half of the month. The additional 60 day extension, helps to keep the account standard. (The delay in payment of EMI’s will not be considered as late payment/default). Your credit score will not be affected.

Yes…The new rules will help ease the financial pressure on couples, getting ready for their wedding. Borrowers availing car loans, home loans and farm loans, can heave a sigh of relief. Be Wise, Get Rich.

IndianMoney.com Research Team

The research team at IndianMoney.com comprises of certified and experienced professionals who share the company's vision to make every Indian financially literate by equipping every Indian with right and unbiased advice. IndianMoney.com research team provides newsletters, articles, videos and FAQs on various financial products and concepts only to help you make wise financial decisions.

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