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.
Bank charges are applicable to Demand Draft but Cheques don’t have any bank charges except for Cheque Leaf charges while issuing Cheque book which might be Rs.2 (usually) per Cheque Leaf.
Below are the basic key distinguish / difference between Cheque vs Demand Draft (DD) to understand more about these features of Banker’s Cheque (Pay Order) and Demand Draft (DD):
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.
Bank charges are applicable to Demand Draft but Cheques don’t have any bank charges except for Cheque Leaf charges while issuing Cheque book which might be Rs.2 (usually) per Cheque Leaf.
Below are the basic key distinguish / difference between Cheque vs Demand Draft (DD) to understand more about these features of Banker’s Cheque (Pay Order) and Demand Draft (DD):
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| Difference between Cheque vs Demand Draft (DD) subramoneyplanning.blogspot.com |
Hope this will be clear
enough to see the distinguish / difference between Cheque vs Demand Draft (DD).
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