Demand Draft
A Demand Draft is a payment instrument issued by a bank for its customer. The mentioned amount in the Demand Draft will be taken from the customer account in advance along with its charge. It is a document format of today’s Bank Transfer. Receiver or Issuer do not require to sign on it as it is authorized by the issuer’s bank. It is a safer mode of payment when compare to a Cheque. A Demand Draft payment cannot be stopped as the fund is already deducted from the issuer’s account and it is the issuing banker’s responsibility to pay the amount to the beneficiary.
Also Read
- Read What is Cash?
- Read What is Cheque?
- See What is Banker / Manager Cheque?
- See What is a Pay Order?
- Know What is Account Payee Cheque / Crossed Cheque?
- Know What is Crossing of a Cheque Mean?
- Read What is an Order Cheque?
- Read What is a Bearer Cheque?
- See What is an Open Cheque?
- See What is a Self Cheque?
- Know What is a Post-Dated Cheque?
- Know What is a Pre-Dated Cheque?
- Read What is a Stale Cheque?
- Read What is a Mutilated Cheque?
- See What is a Travellers Cheque?
- See What is Telegraphic Transfer?
- Know What is Letter of Credit?
- Know What is a Travel Card?
- Read What are the types of Travel Cards?
- Read What is a Branded Credit Card or Debit Card?
Must Know !!