July 12 2018
The Reserve Bank of India (RBI) has made it mandatory to mention the name of the person on the front of the demand draftwhile purchasing it at a bank branch. At present, the DD form only asks for the name of the entity or person in whose favour it is to be prepared.
According to the RBI’s notification, “in order to address the concerns arising out of the anonymity provided by payments through demand drafts and its possible misuse for money laundering, RBI has 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.”