RBI /2006-07 / 206
UBD. CO. BPD. PCB. No. 23 / 12.05.001 / 2006-07

December 13, 2006

Chief Executive Officers of
All Primary (Urban) Co-operative Banks

Dear Sir / Madam,

Please refer to our circular RBI /2004-05 / 192 UBD. BPD. PCB. Cir. 20/09.39.00/2004-05 dated September 24, 2004 advising urban co-operative banks (UCBs) to ensure that duplicate Demand Drafts are issued with in a fortnight from the receipt of such request. For delay beyond this stipulated period, UCBs 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. It is clarified in the above context that the period of fortnight prescribed in our earlier instructions 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.

3. Please acknowledge receipt of the circular to our Regional Offices concerned.

Yours faithfully,

(S.S.Barik)
General Manager