Difference Between Cheque and Demand Draft
Table of Contents
A cheque is a Bill of Exchange drawn on a specified banker and not expressed to be payable otherwise than on demand. Demand Draft is a pre-paid Negotiable Instrument, wherein the drawee bank acts as guarantor to make payment in full when the instrument is presented.
What is meant by demand draft?
A demand draft is a method used by an individual to make a transfer payment from one bank account to another. Demand drafts differ from regular normal checks in that they do not require signatures to be cashed.
Is Cheque required for demand draft?
The Demand Draft can be made by paying the Bank in Cash as well, but for Demand Drafts exceeding Rs. 50,000 the payment should be by cheque only. Quoting your PAN No. is also necessary in case the value of the DD is more than Rs. ... A Draft is normally prepared in the Indian Currency i.e. Rupees.
What is the limit of demand draft?
2. It has been brought to our notice that some banks have recently issued demand drafts of Rs. 50,000/- and above on deposit of cash and not against debit to the customer's account or against cheques or other instruments tendered by the customer.
Can we take DD in any bank?
It can be cleared at any branch of the same bank. It can be cleared at any branch of the same city.
Can a demand draft bounce?
A demand draft is a negotiable instrument where the amount is paid before the DD is issued by the bank, hence, the DD is secure and cannot bounce as a cheque could.
Can DD be Cancelled?
Normally DD cancellation cannot be done online. Few banks do offer online application for demand draft but you have to visit the bank for collecting the DD. ... If you have applied for demand draft by paying the amount by cheque then in this case you need to return original DD along with duly filled DD Cancellation letter.
Can we make DD online?
The demand draft can also be prepared online. The details need to be accurately filled online and the physical demand draft can either be collected from the nearest branch of the issuing bank or can also be mailed to the registered address.
Which bank has lowest demand draft charges?
- At Axis Bank- 15 DDs free per day, after which Rs.50 per DD.
- At other locations - Rs.1 per Rs.1,000 (Min.Rs.25 per DD)
What is DD in India?
One of the payment instruments used in India, demand draft is popularly known as DD. It is a pre-paid negotiable instrument where the drawee bank takes the responsibility of making the payment when the DD is presented by the payee.
What is DD charges of SBI?
What are the SBI DD Charges associated?
| Limit | Charges |
|---|---|
| Up to Rs. 5,000 | Rs. 25 |
| From Rs. 5,000 to Rs, 10,000 | Rs. 50 |
| From Rs. 10,000 to Rs. 1 lakh | Rs.5 per Rs.1000 or part thereof, with minimum of Rs.60 |
| Above Rs.1 lakh | Rs.4 per thousand or part thereof, with minimum of Rs.600 and Maximum of Rs.2,000 |
ncG1vNJzZmidnmOxqrLFnqmbnaSssqa6jZympmeRp8Gqr8ueZp2hlpuys7HNnJyYmpWpxKaxzZiaoZ2hqrKgrc2dlp2dnZa7pavDq5ifrA%3D%3D