Categories: Legal and Regulatory aspects of banking

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

Share
Published by
Surendra Naik
6 years ago

Recent Posts

The list of Priority Sectors identified in India and PSL lending norms

Priority Sector lending (PSL) means bank lending to those sectors that the Government of India…

8 hours ago

International Economic Organizations: The World Bank

The World Bank was established in 1944 in the name of the International Bank for…

16 hours ago

International organisations: The IMF

International Monetary Fund (IMF) is an important financial agency of the United Nations and an…

1 day ago

What is SDR?

The SDR (Special Drawing Rights) is an international reserve asset created by the IMF as…

2 days ago

International organisations: The WTO

The World Trade Organization (WTO) is an intergovernmental organization established on January 1, 1995, replacing…

2 days ago

RBI cautions public against Prepaid Payment Instruments issued by unauthorised entities

The RBI on Thursday said Gurugram-registered TalkCharge Technologies Pvt. Ltd. having its registered office at…

3 days ago