Let us understand the definition of Cheque and Demand Draft to have clear idea.
According to Section 6 of the Negotiable Instruments Act, “Cheque is a bill of exchange drawn on a specified banker and not expressed to be payable otherwise than on demand”.
Although Demand Draft is a pre-paid Negotiable Instrument, it is not defined under the act. Demand Draft is popularly known as DD in Banking Jargon. Demand Draft means an instrument drawn by one branch of a bank upon another branch of the same bank instructing the later to pay a certain sum of money to the person named therein or to his order.
According to Section 6 of the Negotiable Instruments Act, “Cheque is a bill of exchange drawn on a specified banker and not expressed to be payable otherwise than on demand”.
Although Demand Draft is a pre-paid Negotiable Instrument, it is not defined under the act. Demand Draft is popularly known as DD in Banking Jargon. Demand Draft means an instrument drawn by one branch of a bank upon another branch of the same bank instructing the later to pay a certain sum of money to the person named therein or to his order.
