RBI Directed to Frame Guidelines for Automatic Credit of DD Amount if Not Presented Within Validity Period: Karnataka High Court

In a landmark ruling, the Karnataka High Court has directed the Reserve Bank of India (RBI) to issue necessary guidelines to banks regarding the handling of demand drafts that are not presented for clearance within their validity period. The court questioned whether the amount covered under such drafts can be automatically credited to the customer’s account once the draft has expired, particularly when the customer purchased the draft through their…