New rule on Issue of Bank Demand Draft worth Rs. 20000 and above

Bank | admin | November 10, 2011 at 10:43 am

At present, in general not only a particular bank but also all banks issue demand draft without mentioning Account Payee on Demand Draft worth Rs. 20,000/- and above. To avoid cash dealing for heavy amount etc. Reserve Bank of India has issued notification regarding necessity of Account Payee Crossing on Demand Drafts while crediting Payee's Account and also instructed through this notification that no cash payment will be made of Bearing Drafts on Bank Cash Counters. To clarify in detail, complete notification issued by Reserve Bank of India is given as under : -

Notification

RBI/2011-12/250

DBOD.BP.BC. No. 49/21.01.001/2011-12

November 4, 2011

The Chairmen / Chief Executives of

All Scheduled Commercial Banks

(excluding RRBs)

Dear Sir,

Issue of Demand Drafts for Rs. 20,000/- and above

As banks are aware, instruments with account payee crossing are required to be credited to the payee's account and not paid in cash over the counter. However, some unscrupulous elements use demand drafts without any crossing for transfer of money as an alternative to settlement through cash.

2. In order to address the regulatory concerns that have arisen in this context, banks are advised to ensure that demand drafts of Rs. 20,000/- and above are issued invariably with account payee crossing.

Yours faithfully,

(Deepak Singhal)

Chief General Manager -In – Charge.

Read more: Issue of Bank Demand Draft worth Rs. 20000 and above ~ Tds Tax India http://www.tdstaxindia.com/2011/11/issue-of-bank-demand-draft-worth-rs.html#ixzz1dBpWyX6v

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