When Bank will not Accept Cash for making Demand Draft / Transfer of Funds?

By | August 5, 2018
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(Last Updated On: August 5, 2018)

When Bank will not Accept Cash for making Demand Draft / Transfer of Funds?

Video Explanation by CA Satbir Singh in Hindi

Reserve Bank of India (RBI) Directions to Banks  

Issue and Payment of Demand Drafts, etc.,

Any remittance of funds by way of

  • demand draft,
  • mail/telegraphic transfer/NEFT/IMPS or
  • any other mode and
  • issue of travelers’ cheques

for value of rupees fifty thousand and above shall be effected by debit to the customer’s account or against cheques and not against cash payment.

Further, the name of the purchaser shall be incorporated on the face of the demand draft, pay order, banker’s cheque, etc., by the issuing bank. These instructions shall take effect for such instruments issued on or after September 15, 2018.

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