DRAFTS

1. INTRODUCTION
A demand draft is an unconditional order issued by one branch or oce
of a ban! on another branch or oce of the same ban! to "ay a certain sum of
money on demand to a certain "erson or to his order. It is a ne#otiable
instrument and the statutory "rotection e$tended to ban!s in the collection
and "ayment of che%ues under the Ne#otiable Instrument Act is e$tended to
the demand draft also.
&. 'RANC( TO CARR) AD*+UAT* STOC,-
Indents for su""ly of fresh Drafts.continuous stationary/should be sent
0ell in ad1ance so as to ensure ade%uate stoc! al0ays at the branch.
2. 3*RIFICATION OF SU445)-
'lan! Draft Forms are su""lied in continuous numbers. 6hen the
Drafts are su""lied7
the branch should 1erify that-8
a/ The su""ly has been correctly in1oiced9
b/ The Draft forms are "ro"erly numbered and
c/ No form is missin#.
If there is any discre"ancy7 the fact shall at once be brou#ht to the
notice of Stationery and Demand Draft De"artment at (ead Oce7 under
intimation to concerned Re#ional Oce7 for ta!in# u" the matter 0ith the
4rinters as 0ell as for circulatin# the information of the loss to the
branches:oces.
;. Custody of the Stock -
The Drafts recei1ed by the branches should be entered and the stoc!
should be maintained in the C'S system as "er norm.
<. The drafts should remain under the custody of authori=ed
ocer at all times and no unauthori=ed em"loyee or outsider must e1er be
#i1en any access thereto. >reat care must be ta!en by the authori=ed ocer in
ensurin# that no leaf is so remo1ed. The number of drafts issued durin# the
day and the draft stoc! in hand should be carefully reconciled by him e1ery day
after the day?s transactions are o1er.
2@
A. A445ICATION FOR DRAFTS-
A""lication for a draft shall be made in Form No. 2;17 duly Blled in by
the A""licant and si#ned .0ith address and mobile : tele"hone number/. It is
im"ortant to see that all the columns in the form such as name of beneBciary7
amount7 e$chan#e and the Centre:'ranch on 0hich the draft is re%uired are
"ro"erly Blled in and that the form is si#ned by the "urchaser. A""lication for
"urchase of a draft may be made by the e$istin# customer by a letter duly
si#ned by him and addressed to the 'ranch authority7 #i1in# the full "articulars
of the draft intended to be "urchased.
@. T*ND*RIN> OF 4URC(AS* CONSID*RATION OF T(* DRAFT-
The amount of draft "lus e$chan#e may be tendered by the "urchaser in
Cash: by a Che%ue .cash draft ma$imum for less than Rs.<CCCC.CC/ dra0n on his
account 0ith any of our branch or by authori=in# the branch to debit his account
throu#h the letter8cum8a""lication for "urchase of the Draft.
The customer?s si#nature on the letter shall be 1eriBed and an
a""lication in Form No. 2;1 "re"ared under the authentication of an authori=ed
ocial before "assin# the entries. The letter shall then be cancelled by dra0in#
t0o obli%ue lines across it 0ith 0ords D*4? .i.e. *ntries "assed/ and !e"t attached
to the debit 1oucher .0here account is debited/ or to the a""lication .0here a
che%ue is sent alon# 0ith it/ as the case may be.
Note- A""lication for a Draft in fa1our of the 'an! itself must s"eciBcally
mention the account to 0hich the "roceeds of the draft are to be
credited.
6hile acce"tin# consideration from customer for issuance of DD 'ranch 0ill ma!e the
credit transaction7 either throu#h TE or DDEI7 in the oce account number
00980124001111 only7 no matter from 0hich branch the credit is initiated.
@. *FC(AN>* FOR DRAFT-
For each Draft issued7 e$chan#e should be char#ed strictly
accordin#ly to 'an!?s Schedule of Char#es subGect to any rela$ation that is
allo0ed by com"etent authority. Thou#h the DD amount shall be credited to
CCHIC1&;CC11117 the e$chan#e "art shall be automatically credited to the 4J5
*$chan#e on Demand Draft of the issuing branch.
I. Steps prior to printing/writing a draft
a/ K'ranches must ensure before "rintin# a DD that the Printed Seria !u"ber #PS!$
of the %% appearing on &'C( band "atches with the nu"ber dispayed on the
screen. As "er "resent "ractice the 'ranch Serial Number .'SN/ 0ill be identical to the
4SN of the DD. This 0ill be "rinted on the body of the DD abo1e the EICR band. )ranch
"ust ensure that PS! and )S! are identica.
2I
In case of any mismatch they must ma!e necessary rectiBcation before "roceedin#
0ith the "rintin# of DD. Only after funds bein# de"osited for the draft:drafts to be
"urchased or 0here so instructed7 on the a""licant?s account bein# debited and
authori=ed for such debit the authori=ed staL 0ill "roceed to "rint the draft.
9. Scrutiny of the particuars of %raft
'ranch Ocials shall ma!e thorou#h scrutiny of the DD "rinted by the
system and match the "articulars li!e 4SN7 'SN7 4ayee?s name7 amount7 date7
dra0ee branch name etc. If some discre"ancy is detected at the time of scrutiny
the branch 0ill cancel the DD and issue a fresh one.
10. Printing/*riting of )ranch !a"e and Code !u"ber
On the funds bein# de"osited or 0here so instructed7 on the
a""licant?s account bein# debited and duly authori=ed7 the authori=ed cler!
0ill "roceed to "rint the draft. All branches must ensure that only system "rinted
DD is issued to the customers. 6hen "rintin# of DD is not "ossible due to some
una1oidable situation li!e "rinter not 0or!in#7 branches 0ith "rior consent of their
controllin# oce shall manually "re"are the DD. It is ad1ised that 0hen such
manual DD is "re"ared the branches must #et the DD "rinted in #lobal "rinter and
0rite the contents of such "rinted DD on the DD to be issued. Thou#h the DD 0ill
be "ayable at "ar at all branches e$ce"t the issuin# branch7 it 0ill bear the name of
the dra0ee branch. The dra0ee branch name 0ill be as "er the a""lication of the
"urchaser.

11. 4UNC(IN> T(* A44RO4RIAT* CAT*>OR)OF DRAFT S*RI*S-
The al"habetical code OT7TT7O5 J T5 indicatin# the 1alue ran#e of drafts
and are "rinted in hori=ontally ca#es on the left side of the draft
instrument.
De"endin# u"on the amount of the draft issued7 one of these ca#es is to
be "unched to indicate amount or 1alue ran#e of the draft as e$"lained
belo0-
Amount of Draft Ca#es to be "unched
'elo0 Rs. One thousand OT
Rs. One thousand and abo1e but TT
'elo0 Rs.1CCCC:8
Rs. Ten thousand and abo1e but O5
'elo0 Rs.1 lac.
Rs. One lac and abo1e but T5
belo0 Rs. Ten lacs
2H
In addition 1ertically arran#ed ca#es 0ith "re8"rinted number from 1 to H
"ro1ided alon# 0ith the ri#ht hand ed#e of the Demand Draft leaf.
Corres"ondin# to the Brst di#it of the amount of the draft .left most di#it/
one of the numbered .1ertical/ ca#es is to be "unched. For e$am"le7 if the
1alue of the draft is Rs. 2CCCC:87 "unchin# should be made a#ainst DO5? on
the left side and D2? on the ri#ht side of the draft leaf. It is not "ermitted to
"ut cross8mar! or tic!8mar! in the ca#e by dot "en. For demand draft
belo0 Rs. 1CC:8 the ca#e 919 should be "unched.
1&. 4ROT*CTO>RA4(IC T(* DRAFT-
Use of "rotecto#ra"hic security of Draft may be dis"ensed 0ith as the
system "rints MAmount NOT O3*R M Eoreo1er7 such machines are out of
use no0.
12. DRAFTS TO '* FR** FROE A5T*RATION- S4OI5*D DRAFT FORE-
The Draft shall ha1e to be issued free form alteration. 6hen a draft leaf
is s"oiled in
4re"aration it 0ill be mar!ed cancelled under authentication of the
authori=ed ocer
and it should be "reser1ed for record after notin# the same in Draft
Issue Re#ister.
1;. SI>NIN> OF DRAFT ') AUT(ORIS*D SI>NATORI*S-
a/ SCRUTIN) OF T(* 4ARTIC5ARS OF DRAFT-
The authori=ed ocial.s/ 0ill scrutini=e the draft after "rintin# and
si#n the Draft. The
authori=ed ocial.s/ after "uttin# his:their si#nature.S/ 0ill a$ a
rubber stam" 0hich
should clearly indicate his:their abro#ated name.s/ and si#nature
serial number.s/ as
recorded in Facsimile S"ecimen Si#nature 'oo!. The authori=ed
ocial.s/ shall e$ercise
utmost care in si#nin# so that his:their si#nature.s/ tallied 0ith the
recorded s"ecimen.
b/ 5IEITS OF AUT(ORIT) FOR ISSUANC* OF D*EAND DRAFT-
i/ Drafts u"to Rs.1CCCC8: shall be issued by all branches under the
sin#le of the
;C
authori=ed ocial.
ii/ Drafts beyond Rs.1CCCC:8 should bear the si#natures of t0o
authori=ed ocials.
iii/ 'ranches 0hich ha1e one ocer 0ill dra0 Drafts under sin#le
si#nature in fa1our of
'an!s for any amount in settlement of collection items such as
bills and che%ues
recei1ed by them.
i1/ In case a branch 0hich is run by a sin#le ocer7 is re%uired to
issue Demand Drafts
for 1alue more than Rs.1CCCC8:7 such Drafts 0ould be issued
under the Goint
si#nature of the Ocer8in8Char#e of that branch and S"ecial
Assistant7 if any7 or in
his absence7 the (ead Cashier:Char#e Cashier 0ithin the limits
B$ed by (ead Oce.
The S"ecial Assistant or the (ead Cashier in that e1ent should
"ut his si#nature
A$in# a rubber stam" 0hich should clearly indicate his
desi#nation. Eoreo1er7 is
to be ensure that Drafts are 0ithin the ma$imum limits of
authority for issuance of
Demands Drafts under Goint si#natures of t0o ocers 1aryin#
accordin# to si=e and
location of the branches.
1/ 6hen a branch7 run by more than one ocer7 is re%uired to
issue a demand draft
for 1alue more than the ceilin# amount under sin#le si#nature
due to circumstances
beyond its control i.e. absence of ocial.s/7 a s"ecial le#end
may be branded on the
draft Missued under sin#le si#nature7 other ocer.s/ absent.
(o0e1er7 the 'ranch
;1
may other0ise issue multi"le instruments to co1er the 1alue.
1<. NO '*AR*R DRAFT-
No bearer draft shall be issued as it 0ould contra1ene
Section 21 of the Reser1e 'an! of India Act.
1A. Pay"ent of %raft+
Since the Draft is "ayable at "ar7 the "ayment shall be made by the
branch
6here it is "resented by customer or recei1ed throu#h clearin# as if the same
is dra0n
on them. In all cases Centralised Draft Account i.e. CCHIC1&;CC1111 shall be
debited.
All the drafts issued "rior to C'S are Stale and 0ill ha1e to be
cancelled. On recei"t of non8C'S drafts branches shall ha1e the Status re"ort of the
instrument from Demand Draft De"artment .circular No.DD:DD: & :OE8C&@@:1181&
dated C;8CI8&C11/ and then they may "ay the draft after the same has been inserted
into system by our C'S De"artment..For status re"ort branches shall ha1e to send
mail to smddNunitedban!.co.in/
a. &ode of Pay"ent
Draft can be "aid in all three modes li!e Cash:Clearin#:Transfer subGect to
a""licable restriction on amount of "ayment. In order to ensure that a DD is
"aid only if it is issued in the system7 there 0ill be a 1alidation run before
"ayment. The system 0ill match the user in"uts of follo0in# details in the
system besides ,aidating against hot isted items-
i. 4rinted Serial Number
ii. Issue 'ranch
iii. Issue Date
i1. Issue Amount
b. Scrutiny of %rafts before pay"ent -
6hen a Draft is "resented for "ayment7 it should be carefully e$amined to see
that it is in order in all res"ects on the follo0in# "oints -8
i/ The draft is 0ritten on the 'an!?s standard Form.
ii/ It does not carry any material alteration and if there is any7 it has been
"ro"erly authenticated9
iii/ The draft bears si#nature.s/ of the issuin# branch alon# 0ith his:their
si#nature serial number.s/ and the si#nature.s/ tallies 0ith the
recorded s"ecimen in the Facsimile S"ecimen Si#nature 'oo!.
i1/ In case of "resentation o1er the counter7 if the demand draft does not
a""ear to ha1e been crossed7 "ayment may be made on "ro"er
identiBcation of the "ayee. The "ayee may be identiBed as an account
;&
holder of the ban! if his account is maintained 0ith the branch. 3alid
"ass"ort may also be acce"ted for the "ur"ose of identiBcation.
1/ In case 0here the draft is de"osited in an account in the "ayin# branch
itself7 s"ecial care is to be ta!en because the branch is both the
collectin# and "ayin# ban!s.
1i/ In case the draft is "resented throu#h clearin#7 the endorsement.s/
and:or collectin# 'an!?s dischar#e should be "ro"erly scrutini=ed.
1ii/ The draft should be e$amined under an ultra81iolet ray lam" 0here1er
such machine is a1ailable for detectin# "ossible chemical alterations.
1iii/ It should be ensured that there is no intimation of the draft ha1in#
been lost or stolen.
C$ So"e e-ceptions
In rare cases7 "ayin# branches may encounter some e$ce"tional situations.
6e list belo0 such situations and "ossible remedies.
i. .-ception/1 #&is"atched 'te"s$+ 'ranches 0ill chec! the in"ut
made in the system after u"loadin# In0ard Clearin# data 0ith actual
instrument. If there is any error in in"ut the branches 0ill rectify the
same. (o0e1er7 if it is found that there is no error in in"ut but the DD
EICR .4rinted/ Number of the instrument is diLerent from DD System
#enerated number "rinted on the body of the draft then it is a case of
"rintin# "roblem durin# issuance as mentioned abo1e. 'ranch 0ill
then re"lace DD EICR .4rinted/ Number entered 0ith DD number
.System >enerated and "rinted on the body of the Draft/. The
e$ce"tion made is to be recorded on the body of the draft as 0S.('12
&'S&13C4.% %%5. The system 0ill 1alidate the draft and ma!e
"ayment if it is not mar!ed CAUTION. All other drafts 0here there is
mismatch or mar!ed caution is to be handled as "er e$tant
"rocedures.
ii. .-ception/2 #!ot found 'te"s$ - If the system indicates Mno such
DD e$istsO 0hereas such an instrument is "resented for "ayment7
branch 0ill enter MCO in the DD number and chec! 0hether all other
Belds of the draft match. This can be a case of system #ettin# han#ed
durin# "rintin# and the records not u"dated "ro"erly. If such a draft
e$ists in the system ha1in# all other details the branch 0ill ma!e
"ayment only in such cases by enterin# MCO as DD Number and record
the same on the body of the draft.
16. 2ost %rafts
a. 'nfor"ation recei,ed by the issuing branch fro" the purchaser
The issuin# branch 0ill Brst of all chec! the status of the DD. If it remains
un"aid then a caution mar! 0ill be made to the DD usin# DDSE menu.
(o0e1er7 the branch must7 "rior to mar!in# caution 1erify the authenticity of
the instructions.
b. 'nfor"ation recei,ed by the drawee branch fro" the purchaser
In such a situation the dra0ee branch or for that matter any branch shall
ma!e note of the loss only if the authenticity of instruction is established.
;2
Other0ise7 the branch 0ill ad1ise the "urchaser to a""roach the issuin#
branch
c. (ecording of 2ost %% 2ea,es before 'ssuance +
6hen DD lea1es are lost before issuance of the Draft from the custody of the
branch7 the branch concerned "ust i""ediatey add the ost
instru"ents in the hot isted ite"s by using C4'& "enu option and
inform 1i#ilance de"artment and other authority as "er e$tant #uidelines in
this re#ard.
18. %upicate %raft
a. 'ssuance of %upicate in ieu of origina reported ost
The issuin# branch7 on recei"t of such a re%uest7 0ill chec! the status of the
DD in %uestion. If the same is found un"aid7 the authenticity of re%uest is
established beyond doubt and a""ro"riate indemnity is e$ecuted by the
"urchaser and "ayee7 the issuin# branch shall cancel the DD and issue a
fresh %e"and %raft in lieu of it. It may be noted here that obtaining of
Non Payment Certifcate from drawee branch shall be no longer be
necessary before issuance of duplicate DD as has been done now, as
this information will be readily available from the system.
b. If the "ayee declines to Goin the indemnity7 a declaration shall be obtained from
him to the eLect that the draft has not been recei1ed by him or lost from
his custody - that he has no obGection to a du"licate draft bein# issued to the
"urchaser and that the ori#inal draft7 if recei1ed later7 0ill be returned to the
'an!. The si#nature of the "ayee .and of the endorsee7 .if any/ must be
attested by his ban!er or by a res"ectable "erson other than the "urchaser7
!no0n or acce"table to the 'ranch.
19. (efund of %raft a"ount/Canceation of %raft
a. Canceation of %raft
The "urchaser or his authori=ed a#ent shall ma!e an a""lication to the 'ranch
from 0here the DD sou#ht to be cancelled 0as issued7 alon# 0ith the ori#inal
DD. 'ranch 0ill 1erify the #enuineness of the instruction from the ori#inal
a""lication of "urchase. On satisfaction of #enuineness of the instruction a
transaction "rocess is initiated usin# DDC menu o"tion and DD amount less
Cancellation char#es7 if any7 is refunded to the "urchaser by a mode of
"ayment as re%uested and as "er 'an!?s norm. 't "ay be noted here that
ony the issuing )ranch can cance the %%.
20. Caution &arking of %raft
At times for 1arious reasons "urchaser or beneBciary of the DD a""roaches
the 'an! to mar! a MSto" 4aymentO a#ainst an issued draft. The system
"ro1ides facility of MCAUTIONO mar!in# in case of lost DDs. Once a DD is
cautioned the system 0ill thro0 an alert at the time of ma!in# "ayment of
such instrument. As "er e$tant #uidelines branches are to return the
instrument 0ith the reason MDraft Re"orted 5ostO.
;;
21. Stae %raft
A DD becomes stale after three months from the date of issue. The system
automatically mar!s it as stale.
22. (e,aidation of %raft -
6hen a re%uest is recei1ed from an indi1idual customer for re1alidation of the
DD7 the issuing branch wi cance it and issue a fresh %%. In case the DD in
%uestion is a 4re8C'S DD7 branch 0ill send e8mail to DD De"artment as!in# to !no0 the
Status of the Draft and a""roach Data Center for addin# it in the system. Thereafter it 0ill
be cancelled and if re%uested7 a fresh DD mayl be issued.
In case of Institutions a""roachin# for re1alidation of a lar#e number of Drafts the
branch 0ill ta!e ad1ise from Data Center for handlin# such situations. (o0e1er this
can be done only on a "re8determined date and after a""ro1al from a""ro"riate
authority for s"eciBc institutional customers.
In case of the beneBciaries of drafts are >o1ernment De"artments7 at their s"eciBc
re%uest7 the issuin# branch7 0ith "rior a""ro1al from Chief Re#ional
Eana#er:Re#ional Eana#er7 may consider "ayment of such Drafts "resented e1en
after the 1alidity "eriod is o1er.
27. 1ccounting entries reating to issuance and pay"ent of %e"and %raft
a. %raft 1ccount
There 0ill be only one account for DD across the ban! namely7
CCHIC1&;C11111
b. 8or 'ssuance of %raft
c. The CDA shall be used by all branches for issuance of C'SDD.
d. 8or Pay"ent of %raft
The CDA shall be used by all branches for "ayment of C'SDD.
e. 3ransfer of Cosing )aance of %raft 1ccount
There 0ill be no necessity of transferrin# the Closin# 'alance of DD account
annually to (ead Oce. As re#ards balance in e$istin# SO5 s"eciBc Draft
Account suitable instructions 0ill follo07 in due course.
&;. EISUS* OF 'AN,IN> C(ANN*5S FOR 3IO5ATION OF FISCA5 5A6S AND *3ATION OF
TAF*S8
ISSU* AND 4A)E*NT OF D*EAND DRAFT FOR RS.<CCCC:8 AND A'O3*.
;<
The Reser1e 'an! of India has decided in consultation 0ith the >o1ernment of India and
Indian 'an!?s Association that in order to curb the misuse of 'an!in# Channels for
1iolation of Bscal la0s and e1asion of ta$es7 demand drafts7 mail transfers7 tele#ra"hic
transfers and tra1elers che%ues for Rs.<CCCC:8 and abo1e should be issued by 'an!s
only by debitin# the customer?s account or a#ainst che%ues or other instruments
tendered by the customer and not a#ainst cash "ayment. Similarly7 such "ayment of
Rs.<CCCC:8 and abo1e should be made throu#h 'an!in# channels and not in cash.
Demand Drafts J 4ay Orders for Rs.<CCCC:8 and abo1e should strictly be issued by
debitin# customer?s A:c or a#ainst Che%ues only. In no case Drafts:4ay Orders of
Rs.<CCCC:8 and abo1e are issued a#ainst tender of cash e1en by s"littin# the amounts in
fa1our of the same beneBciary7 "urchased by the same "urchaser.
No Drafts:4ay Orders should be issued a#ainst Inter 'ranch Credit in Transfer mode.
This 0ill be in 1iolation of (ead Oce >uidelines issued on the strict "rohibition made by
Reser1e 'an! of India

IN NO CAS* SIN>5* DRAFT AEOUNTIN> TO RS 1C.CC 5A,( .RU4**S T*N 5A,(/ AND
A'O3* S(OU5D '* ISSU*D IN A SIN>5* DRAFT 5*AF. FOR ISSUANC* OF DRAFTS FOR
AEOUNT OF
RS.1C.CC 5A,( J A'O3*7 EU5TI45* DRAFTS EA) '* ISSU*D TO CO3*R T(* TOTA5 3A5U*
R*+UIR*D. T(* 'RANC(*S S(OU5D 4*RSUAD* CUSTOE*RS TO A3AI5 !.83/(39S/P1:
;(%.( FACI5IT) FOR R*EITTANC*S OF RS. 1C.CC 5A,( J A'O3*.

;A