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