RBI/2011-12/135
DBOD.BP.BC. No. 26 / 21.01.001/2011-12, Dated- August 1, 2011
Misuse of Banking Channels – Issue and Payment of Demand Drafts for Rs. 50,000/- and above
Please refer to our
circular DBOD.BP.BC.No.114/C.469(81) – 91 dated April 19, 1991 in terms
of which demand drafts, mail transfers, telegraphic transfers and
travellers cheques for Rs.50,000 and above should be issued by banks
only by debit to the customer’s account or against cheques or other
instruments tendered by the purchaser and not against cash payment.
These instructions were extended to retail sale of gold/silver/platinum
vide our circular DBOD.No.IBS.1816/ 23.67.001/98-99 dated February 4,
1999.
2. It has been brought
to our notice that some banks have recently issued demand drafts of Rs.
50,000 and above on deposit of cash and not against debit to the
customer’s account or against cheques or other instruments tendered by
the customer.
3. In the current
scenario where the integrity of the financial system in general and the
banking channels in particular is of paramount importance, breach of
these guidelines is a matter of serious regulatory concern in view of
the wide ranging ramifications.
4. In the above context,
we reiterate that the instructions conveyed vide our circular dated
April 19, 1991 referred to above may be strictly complied with by banks.
Any violation of these instructions will be viewed seriously.
Yours faithfully,
(P. R. Ravi Mohan)
Chief General Manager