To minimize the risk arising out of Open Demand Drafts, being used in lieu of Cash, RBI, DBOD, vide its Notification NO RBI/2011-12/250 DBOD.BP.BC. No. 49/21.01.001/2011-12, dt November 4, 2011, has advised banks to ensure that demand drafts of Rs. 20,000/- and above are issued invariably with account payee crossing.
It is to be noted that, instruments with account payee crossing are required to be credited to the payee’s account and not paid in cash over the counter.
Demand drafts include Pay Orders too.
99% of the Demand Drafts/Pay Orders are machine printed, hence, a small modification in the DD/PO printing program of the Banks’ CBS, to ensure that ‘account payee’, is printed by default for DD/PO above 20,000/- will eliminate the risks of missing the ‘account payee’, crossing.