Demand draft to bear name of purchaser from Sep 15
By TIOL News Service
NEW DELHI, JULY 13, 2018: IN a bid to make banking instruments more safer and stronger, the RBI has made it mandatory to mention buyer's name on demand draft. It has been decided that the name of the purchaser to be incorporated on the face of the demand draft, pay order, banker’s cheques by the issuing bank. These instructions shall take effect for such instruments issued on or after September 15, 2018.
Accordingly, Section 66 of the Master Direction on KYC dated February 25, 2016, as amended on April 20, 2018, has been amended and following paragraph has been added:
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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