RBI/2018-19/14
DBR.AML.BC.No.210/14.01.001/2018-19
July
12, 2018
The Chairperson/CEOs of all
Scheduled Commercial Banks including
Regional Rural Banks/Urban Co-operative Banks/State Co-operative Banks/
District Central Co-operative Banks/Local Area Banks/Small Finance
Banks/Payment Banks
Dear Sir/Madam,
Incorporation of Name of the
Purchaser on the Face of the Demand Draft
In order to address the concerns
arising out of the anonymity provided by payments through demand drafts and
its possible misuse for money laundering, 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. 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.
2. You are advised to ensure
compliance with the above.
Yours faithfully,
(Dr. S. K. Kar)
Chief General Manager
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