Issue of Demand Drafts for Rs. 20,000/- and above

 

DBOD.BP.BC. No. 49/21.01.001/2011-12

As banks are aware, instruments with account payee crossing are required to be credited to the payee’s account and not paid in cash over the counter. However, some unscrupulous elements use demand drafts without any crossing for transfer of money as an alternative to settlement through cash.

 

2. In order to address the regulatory concerns that have arisen in this context, banks are advised to ensure that demand drafts of Rs. 20,000/- and above are issued invariably with account payee crossing.


PERSONAL PERCEPTION

Different people have different perception. One man’s meat could be another man’s poison.

A couple bought a donkey from the market.

On the way home, a boy commented, “Very stupid. Why neither of them ride on the donkey?”

Upon hearing that, the husband let the wife ride on the donkey. He walked besides them.

Later, an old man saw it and commented, “The husband is the head of family. How can the wife ride on the donkey while the husband is on foot?” Hearing this, the wife quickly got down and let the husband ride on the donkey.

Further on the way home, they met an old Lady. She commented, “How can the man ride on the donkey but let the wife walk. He is no gentleman.”

The husband thus quickly asked the wife to join him on the donkey. Then, they met a young man. He commented, “Poor donkey, how can you hold up the weight of two persons. They are cruel to you.” Hearing that, the husband and wife immediately climbed down from the donkey and carried it on their shoulders.

It seems to be the only choice left. Later, on a narrow bridge, the donkey was frightened and struggled. They lost their balance and fell
into the river. You can never have everyone praise you, nor will everyone condemn you. Never in the past, not at present, and never
will be in the future.

Thus, do not be too bothered by others words if our conscience is clear..

Collection of account payee cheque – Prohibition on crediting proceeds to third party account

 

Ref: DBOD.BP.BC No. 56 / 21.01.001/ 2005-06

Collection of Account Payee Cheques –Prohibition on Crediting Proceeds to Third Party Account

 

Please refer to our circular DBOD.BP.BC.No.56/21.01.001/2005-06 dated January 23, 2006 in terms of which banks are prohibited from crediting ‘account payee’ cheques to the account of any person other than the payee named therein.

 

2. In view of concerns raised that these instructions are not being adhered to, we reiterate that banks shall strictly adhere to the instructions contained in our circular referred to above and not collect account payee cheques for any person other than the payee constituent.

 

3. With a view to mitigate the difficulties faced by the members of co-operative credit societies in collection of account payee cheques, relaxation was extended vide our circular DBOD.BP.BC.No. 47/21.01.001/2010-11 dated October 1, 2010. In terms of the said circular, banks may consider collecting account payee cheques drawn for an amount not exceeding Rs.50,000/- to the account of their customers who are co-operative credit societies, if the payees of such cheques are the constituents of such co-operative credit societies. The above relaxation will continue as hitherto, subject to the conditions outlined in the circular dated October 1, 2010 referred to above.

 

4. Banks may note that the above prohibition and relaxation shall also extend to drafts, pay orders and bankers’ cheques.


Cheques/Drafts/Pay Orders/Banker’s Cheques validity limited to 3 months

The Reserve Bank of India issued a notification on Friday saying that from April 1, 2012, banks, drafts, pay orders and bankers’ cheques will have to be presented within three months of the date of issue of these instruments.

The change has been prompted by instances of misuse of the payment instruments.

Banks have been instructed to print the change on the cheque leaves and drafts that will be issued from April 1, 2012

Ref: http://www.rbi.org.in/scripts/NotificationUser.aspx?Id=6805&Mode=0

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