PM Modi's decision to withdraw high value notes in the middle of bust wedding season has drawn criticism
Highlights
- Bride, groom or either of their families can withdraw 2.5 lakhs
- Have to prove vendor being paid in cash does not have bank account
- Finance Minister reviewing restrictions, RBI to make final call
The cash crunch caused by the sudden ban on 500 and 1,000-rupee notes has meant more-than-usual stress for the families of people getting married.
But the restrictions on wedding-related expenditure could be loosened soon, said government sources who disclosed that Finance Minister Arun Jaitley is reviewing the matter. A final decision will be taken by the Reserve Bank of India, they said.
On Monday, the central bank said that
people can withdraw up to 2.5 lakh rupees per wedding, provided they submit adequate proof and the wedding is on or before December 30.
Either the groom or bride's family can make the withdrawal, and they must prove that vendors being paid in cash - like a caterer or florist - do not have bank accounts.
Prime Minister Narendra Modi left the country stunned on November 8 by abolishing 500 and 1,000 rupee notes that accounted for 86 per cent of cash in circulation. The move is aimed at cracking down on the shadow economy but has brought India's cash economy to a virtual standstill.
PM Modi's decision to withdraw the high-value bills in the middle of the
busy wedding and seed sowing season has drawn widespread criticism. After days of winding lines at banks to exchange bills or withdraw cash, officers say the rush is now ebbing, though several thousand ATMs remain out of service because of technical issues with handling the new 500 and 2,000-rupee notes.
People looking to withdraw have to also submit evidence of the wedding, including the invitation card and copies of receipts for advance payments, and a detailed list of people who will receive the cash.
As ordinary families spoke of the difficulty in pulling off a memorable wedding in the current circumstances, mining baron and former
Karnataka minister Janardhana Reddy was the outlier. His daughter's wedding reception, held last week, was so showy that it drove international attention, with estimates of the cost ranging from 30 to 500 crores, a number also raised in parliament.