RBI

Name of purchaser to be mentioned on the face of Demand Draft, pay order etc. to check money laundering-RBI

Name of purchaser to be mentioned on the face of Demand Draft, pay order, banker’s cheques, etc., by the issuing bank 15th September 2018 inwards-RBI

Incorporation of Name of the Purchaser on the Face of the Demand Draft

Reserve Bank of India has decided to incorporate the name of the Purchaser on the Face of the Demand Draft issued by the banks.

As per instruction issued in this regard, it has been stated that this step has been taken in order to address the concerns arising out of the anonymity provided by payments through demand drafts and its possible misuse for money laundering.

Now, 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.

The said These instructions shall take effect for instruments issued on or after September 15, 2018.

Accordingly, Section 66 of the Master Direction on KYC dated February 25, 2016 has been amended by adding the following paragraph:

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.

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