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      Question

      For demand drafts, pay orders, or banker’s cheques of

      ₹50,000 and above, which requirement must be fulfilled as per banking guidelines?
      A Payment can be made in cash by the purchaser Correct Answer Incorrect Answer
      B The purchaser’s name must be mentioned on the face of the instrument Correct Answer Incorrect Answer
      C Transactions must only be conducted via digital wallets Correct Answer Incorrect Answer
      D Issuance requires approval from the bank manager Correct Answer Incorrect Answer
      E No verification of the purchaser’s details is required Correct Answer Incorrect Answer

      Solution

      As per RBI guidelines (effective 15th September 2018): • For fund transfers of ₹50,000 and above through demand drafts, pay orders, banker’s cheques, or similar instruments: o Payment must be made only by debiting the customer’s account or against a cheque — cash payment is not allowed. o The name of the purchaser must be incorporated on the face of the instrument to enhance transparency and traceability. This measure was introduced to prevent misuse of large-value transactions, enhance accountability, and strengthen the anti-money laundering framework.

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