From September 15, demand draft to bear name of purchaser | September 11



? Cool Title, but what’s the news?

The Reserve Bank has directed banks to incorporate the name of purchaser in demand draft in a bid to address concerns of money laundering.

? Okay, but what does it mean?

From September 15 onwards, issuing banks have been asked to incorporate the name of the purchaser on the face of the demand draft, pay order, and banker’s cheques. These instructions shall take effect for such instruments issued on or after September 15, 2018.

? Why should I care?

The RBI in a notification said the step is being taken to address concerns arising out of the anonymity provided by payments through demand drafts and its possible misuse for money laundering. Source: TOI
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Written by

Vedant Kaushik