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

Q: Answer-For demand drafts, pay orders, or banker’s cheques of ₹50,000 and above, which requirement must be f...

As per RBI guidelines effective 15th September 2018 For fund transfers of 50,000 and above through demand drafts, pay orders, bankers cheques, or similar instruments o Payment must be made only by debiting the customers 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.

₹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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SIDBI Grade A (Assistant Manager)

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