November 10, 2006
All Scheduled Commercial Banks
Customer Service – Issue of Duplicate Demand
Please refer to our circular DBOD.No.BC.147/09.07.007/99-2000
dated March 9, 2000 wherein banks were advised to issue duplicate Demand Draft
to the customer within a fortnight from the receipt of such request.
Further, for the delay beyond this stipulated period, banks were advised to
pay interest at the rate applicable for fixed deposit of corresponding maturity
in order to compensate the customer for such delay.
2. Keeping in view the term 'customer' used
in the above Circular, some doubts were raised as to whether banks are required
to issue duplicate Demand Draft within the period of fortnight only to the purchaser
/ beneficiary or also to any holder of the instrument other than the purchaser
or the beneficiary.
3. In this connection, we clarify that the period
of fortnight prescribed in our Circular dated March 9, 2000 for issue of duplicate
Demand Draft would be applicable only in cases where the request for duplicate
demand draft is made by the purchaser or the beneficiary and would not
be applicable in the case of third party endorsements.
4. Please acknowledge receipt.
Chief General Manager-in-Charge