An employee serves customers inside a branch of Gramin Bank of Aryavart, sponsored by Bank of India, in the village of Khurana, Uttar Pradesh, India. (Photographer: Prashanth Vishwanathan/Bloomberg)

RBI Wants Buyer’s Name On Demand Draft To Curb Money Laundering  

The Reserve Bank of India has directed banks to incorporate the name of purchaser in a demand draft to address concerns of money laundering.

The RBI has made required changes in this regard in the Know Your Customer norms, effective Sept. 15.

The apex bank in a notification said the step is being taken to address concerns arising out of anonymity provided by payments through demand drafts and its possible misuse for money laundering.