RBI imposes conditions on money withdrawal for marriages

With many restrictions on money exchange imposed by the government last week, chaos and rush at banks eased a bit. But the situation did not improve at ATMs as people were still seen waiting in long queues to withdraw money. The banks opened on Monday after a day’s break, resulting in people rushing in to exchange old defunct bills or withdraw cash in the initial hours. ATMs still need to be re-calibrated to dispense new currency notes. The government further relaxed norms for farmers ahead of the sowing season.

Even if the ATMs are functioning in the city, they only provide the notes of higher denomination that is of Rs 2,000. It has been a new headache for the people as the shopkeepers find it difficult to fetch the customers change for Rs 2,000.

RBI imposed stiff conditions for withdrawal of up to Rs 2.5 lakh in cash from bank accounts for marriages, saying money can be withdrawn only from the credit balance as on November 8, the day demonetisation was announced. While notifying norms, RBI said that the cash withdrawn should be used only to make payment to those persons who do not have bank accounts and the names of such recipients should be mentioned while applying for withdrawal of the cash.

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