Reserve Bank of India issued a notification that Demand Draft DD above rupees 20000 should be account payee and not for transmitting in the market as cash,dd. RBI isssued a circular regarding this issue. RBI issued a notification no. 250 dated 04-11-2011 for the demand draft. Full notification is as under.
RBI/2011-12/250
DBOD.BP.BC. No. 49/21.01.001/2011-12
DBOD.BP.BC. No. 49/21.01.001/2011-12
November 4, 2011
The Chairmen / Chief Executives of
All Scheduled Commercial Banks
(excluding RRBs)
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.
Chief General Manager -In - Charge.
Tags-dd account payee,account payee dd
