The Reserve Bank (RBI) has made required changes in this regard in the Know Your Customer (KYC) norms, which will come into effect from September 15. (Reuters)The Reserve Bank has directed banks to incorporate the name of purchaser in demand draft in a bid to address concerns of money laundering. The Reserve Bank (RBI) has made required changes in this regard in the Know Your Customer (KYC) norms, which will come into effect from September 15. The RBI in a notification said the step is being taken to address concerns arising out of the anonymity provided by payments through demand drafts and its possible misuse for money laundering.
From September onwards, issuing banks have been asked to incorporate the name of the purchaser on the face of the demand draft, pay order, and banker’s cheques. These instructions shall take effect for such instruments issued on or after September 15, 2018.