Does your bank ask you what will do with your withdrawn money?

As @hereandthere correctly said, it is part of anti-money laundering policy, we are not allowed to withdraw large amount of money cash... anyway we must pay through the bank for house renewals, cash is not allowed.

it is part of the anti-money laundering policy. they also ask it if you're withdrawing everything to close your account. there was a mylotter who worked at a bank who explained this before.

I think this only applies for huge amounts of money as they are required to report to Anti Money Laundering agency any amount that will move in or out of bank.

Banks never ask anything while depositing but on withdrawing they ask many questions. Now one person told me when they deposit money bank never bothered about the difference of name in bank account and aadhar card (a unique identity card in our country) but on withdrawing they refused to pay the money telling the different names (on the spelling of name) in both document. They changed the name in the id card then only they got the money.

Maybe they are just trying to protect you but I can understand that it would be annoying.

Back home before, bank personnel or a bank officer would discreetly ask a depositor why he or she is withdrawing a large amount of money especially when the depositor is accompanied by anyone who does not seem to be family. This was because of scammers who would lure people, especially old people, into investments with tempting high returns. There were a few occasions when scams like this were prevented because of alert bank personnel. There are even instances when bad elements accompany a depositor to withdraw money from the ATM while another cohort keeps an eye on a family member held at home held hostage to make sure the depositor gets the money from the ATM. These are petty crimes but they pose physical harm to the victims. So, when banks do this back home, it’s not intrusion of privacy. They are after the safety and security of the depositor.

From the previous comments, even though it is our own money, we still have to follow the existing requirements.

I have never been asked that, but when I need to use a lot of money, I transfer it to the other place. There are a couple of ways but in neither do I touch real money.

That would really be annoying since it's your own money but if that it part of the policy, then we have to abide by it. Maybe I did not withdrawn huge amount of money as of yet so I haven't experience this.

I have never encountered such incident before

No one has ever asked what I am going to do with a large some of money when I take it out.

Never had that happen. I'd be ticked off as well.

I have never encountered this type of problem..My bank never asked me about this..