Banks Directed to Mention Purchaser’s Name on DD

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Reserve Bank of India has directed the Banks to make it compulsory to mention purchaser’s name on the face of demand draft (DD) in addition to the name of Payee, name of the issuing Branch and the paying Branch. This new rule will come into force from 15th of September, 2018. This order is also applicable on Pay-orders and Bankers’ Cheque.

Reserve Bank of India has directed the Banks to make it compulsory to mention purchaser’s name on the face of demand draft (DD) in addition to the name of Payee, name of the issuing Branch and the paying Branch. This new rule will come into force from 15th of September, 2018. This order is also applicable on Pay-orders and Bankers’ Cheque.

This order has come as a precaution to curb:

  • Money Laundering
  • Misuse of transferring funds by unfair means.
  • Frauds using fake/unused stationery

It was observed that some people try to purchase demand drafts in cash below Rs.50000/- of amount and in some common names like Ashok Kumar, Ramesh Kumar etc. and such demand drafts change many hands.

If the name of the purchaser will be mentioned on the face of the demand drafts, the chances of the above loopholes may be minimised

This order has come as a precaution to curb:

  • Money Laundering
  • Misuse of transferring funds by unfair means.
  • Frauds using fake/unused stationery

It was observed that some people try to purchase demand drafts in cash below Rs.50000/- of amount and in some common names like Ashok Kumar, Ramesh Kumar etc. and such demand drafts change many hands.

If the name of the purchaser will be mentioned on the face of the demand drafts, the chances of the above loopholes may be minimised

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