RBI amends Master Direction on KYC

Jul 13, 2018 | by Avantis RegTech Legal Research Team


The Reserve Bank of India (RBI) vide notification dated July 12, 2018 has amended Section 66 of Master Direction on KYC which was issued on February 25, 2016 in order to address the concerns arising out of the anonymity provided by payments through demand drafts and its possible misuse for money laundering. The 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.

The following paragraph has been added in Section 66 which relates to Issue and Payment of Demand Drafts:

“Further, the name of the purchaser shall 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.”

These instructions shall take effect for such instruments issued on or after September 15, 2018.

[RBI/2018-19/14 DBR.AML.BC.No.210/14.01.001/2018-19]

 

URL: https://rbidocs.rbi.org.in/rdocs/notification/PDFs/NOTI1444775A60C0B24C50A8F63C32ABDDCEDF.PDF


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