Can a bank issue a Demand draft for more than 50000 rupees?

Avatar 37a3bd7bc7328f0ead2c0f6f635dddf60615e676e6b4ddf964144012e529de45 Pinky asked over 3 years ago

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3 Answers
Open uri20170510 32134 1ue0f38?1494421710 rohit agarwal answered over 3 years ago

Dear Pinky, Demand draft can be prepared for any amount. Charges vary from bank to bank and on amount to amount. Procedure for preparation of demand draft varies from bank to bank. Drafts can be prepared by paying cash or any other negotiable instrument tendered by the bank. However, there are various banks which does not prepare drafts by taking cash from the purchaser. The reason behind is that the issue and payment of drafts in cash by the banks are subject to Income Tax provisions and RBI guidelines against money laundering activities. Issue of these instruments of Rs. 50,000/- and above is not permitted against cash but only through debit to customers account or against cheques/other instruments tendered by the purchaser. Drafts for an amount of Rs.50,000/- and over cannot be prepared by paying cash to the bank. It can only be done by credit of the payees account or to his banker. Drafts of Rs.50,000/- and above are required to have signatures of two authorised officials. Before taking delivery of the drafts, please verify that the draft is complete in all respects including signature of the official(s) along with their specimen signature numbers at the place provided for. Regards

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Avatar 37a3bd7bc7328f0ead2c0f6f635dddf60615e676e6b4ddf964144012e529de45 veeru answered over 3 years ago

Absolutely yes. Banks have to ensure that applicant furnishes his Permanent Account Number and pays for the amount through his bank account. visit [CAKART provides the best video Lecture and Online classes, coaching for Chartered Accountant CA FINAL, CA Intermediate | CA IPCC, CA Foundation | CA CPT Exams; Company Secretary CS FINAL] to avail discount use my ambassador code :CAKARTAMB1671782 for more article visit https://www.cakart.in/blog http://cakart.in

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Avatar 37a3bd7bc7328f0ead2c0f6f635dddf60615e676e6b4ddf964144012e529de45 CHITRANJAN AGARWAL answered over 3 years ago

Dear Pinky, Yes, bank can make demand draft more than of rs 50000 but the payment for such sum should be through cheque and your such bank accounts should be linked with your PAN. Bank can issue a demand draft of more than of rs 50000 after fulfill the requisite details by you. you should fill the form for making demand draft along with cheque and after payment the charges you can obtain demand draft. Any other query feel free to contact us. Writer CA Chitranjan Agarwal

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