Negotiable Instruments Act Section 85A — Drafts drawn by one branch of a bank on another payable to order
CHAPTER VII OF DISCHARGE FROM LIABILITY ON NOTES, BILLS AND CHEQUES
General
Summary
If a bank draft is issued by one branch of a bank and is payable to a specific person or their order at another branch of the same bank, and the draft appears to be signed by or on behalf of that payee, then the bank is released from its obligation once it pays the money in the normal and proper way. This means the bank does not have to verify whether the signature on the draft is actually genuine, as long as the payment is made in the usual course of business.
Official Text
where any draft, that is an order to pay money, drawn by one office of a bank upon another office of the same bank for a sum of money payable to order on demand, purports to be endorsed by or on behalf of the payee, the bank is discharged by payment in due course.]