In an attempt to curb instances of money laundering, the Reserve Bank of India has made it mandatory for all demand drafts to carry the name of the buyer/purchaser. The new rule will be enforced from September 15 and all banks have been directed to adhere to the same.
Demand drafts currently carry only the name of the individual in whose favour they are made out to. This has led to anonymous payments, given rise to the possibility of money laundering.
The purchaser’s name will need to be mentioned on the face of not just demand drafts, but also banker’s cheques, pay orders, etc. The RBI released a statement regarding the same.
According to a report by Business Today, over 5,000 instances of bank fraud had been reported between April ’17 and March ’18, with the value of these frauds being in excess of Rs.28,459 crore.
The government has already adopted stringent measures to combat fraud cases, with this new directive from the RBI likely to help curb down instances of fraud.
In another move by the RBI, it gave its approval to Airtel Payments Bank to onboard new customers. The payments bank had been barred from adding new customers until an RBI enquiry was conducted, as reported by Business Standard.
Sources: Business Standard, Business Today, Hindustan Times