In a series of measures taken by the Reserve Bank of India to make banking instruments safer and stronger, the central bank on Thursday said it has decided to make it mandatory to mention the name of a purchaser on the face of a demand draft (DD) at a bank branch. In the current form, only the name of a person in whose favour a DD is to be prepared is mentioned on it. The apex bank has also decided to include pay order and bankers cheques under the new rule from September 15.
“To address the concerns arising out of the anonymity provided by payments through demand drafts and its possible misuse for money laundering, it has been decided that the name of the purchaser 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,” the RBI said in a statement.
The central bank has asked all the banking institutions to comply with the new guidelines. A total of 5,152 cases of fraud involving over Rs 28,459 crore were reported in various banks of the country in the past year from April 2017 to March 1, 2018.
Read the original article here: businesstoday.in
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