Demand Draft to bear name of purchaser

Demand Draft to bear name of purchaser

Mumbai: In order to address concerns of money laundering, the Reserve Bank has directed banks to incorporate the name of the purchaser in demand draft. The order will come into effect from September 15.

According to a notification issued by RBI, 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.

RBI has asked the issuing banks 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 from September 15, 2018.