Incorporation of Name of the Purchaser on the Face of the Demand Draft

RBI vide its circular RBI/2018-19/14, DBR.AML.BC.No.210/14.01.001/2018-19 dated 12.07.2018 has made it compulsory to banks to incorporate the name of the purchaser on the face of the Demand Draft while purchasing it at a bank (including RRBs, Co-operative banks).

In terms of the above notification, Section 66 of the Master Direction on KYC dated February 25, 2016, as amended on April 20, 2018, has been amended and following paragraph has been added:

Further, the name of the purchaser shall be incorporated on the face of the demand draft, pay order, banker’s cheques, etc., by the issuing bank. These instructions shall take effect for such instruments issued on or after September 15, 2018.

It is learned that the above step was taken by RBI in order to address the concerns arising out of the anonymity provided by payments through demand drafts and its possible misuse for money laundering.

Surendra Naik

Next DA chart of Bank employees (August-October'18) »

Previous « Basel III : Capital treatment of Banks' Balance Sheet items

Published by

Surendra Naik

6 years ago

Role of Financial Sector Regulators in an Economy
Financial regulators are government agencies responsible for overseeing and regulating financial institutions and markets. The…
Bankers Duty of Secrecy and Confidentiality
A bank must protect the confidentiality of its customers' personal and banking-related information. This duty…
Payment by Bank Under Mistake: Whether Recoverable?
Section 72 of the Indian Contract Act provides that a person to whom money has…

Supreme Court overrules capping of Credit card charges

The Supreme Court today overruled a 2008 decision by the National Consumer Disputes Redressal Commission…

5 hours ago

Accounting

Preparation and Presentation of Financial Statements of Banks

The Bank’s financial statements are prepared under the historical cost convention, on the accrual basis…

9 hours ago

Accounting

Accounting Treatment of Specific Items under accounting policies of banks

The term "accounting treatment" represents the prescribed manner or method in which an accountant records…

13 hours ago

Legal and Regulatory aspects of banking

Explained: Disclosures Prescribed by RBI under Basel-III

The Basel Committee on Banking Supervision (BCBS) is the primary global standard setter for the…

1 day ago

Legal and Regulatory aspects of banking

Disclosure requirement of Banks Listed on a Stock Exchange

In terms of Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations,…

1 day ago

Accounting

Understanding Comments on Profit and Loss Account Items

Many methods and techniques are used in the analysis of financial statements including profit and…

2 days ago