A recent press report said that the RBI has cautioned banks not to issue demand drafts of Rs 50,000 and above on deposit of cash. The central bank said that any such disobedience of instructions will be viewed seriously.
Reports said that the RBI has come across cases where few banks had issued demand drafts of Rs 50,000 and above on deposit of cash and not against debit to the customer’s account or against cheques or other instruments tendered by the customer.
The Reserve Bank of India said that in the current scenario where the integrity of the financial system, in general, and the banking channels, in particular, was of paramount importance, violation of the guidelines is a matter of serious regulatory concern in view of the wide ranging ramifications.
According to reports the RBI has said that, demand drafts, mail transfers, telegraphic transfers and traveller’s cheques for Rs 50,000 and above should be issued by banks only by debit to the customer’s account or against cheques or other instruments tendered by the purchaser and not against cash payment. This is applicable to retail sale of gold, silver or platinum.
The recent hike in base rates by the RBI has caused the slowdown in loan business of the banks; it has also made it mandatory for all banks to increase their loan rates (home loan, personal loan, business loans, vehicle loan etc.)