What is crossed demand draft?

If you cross a bank draft only an account holder can en cash the same. It is generally safer than the normal bank draft.
Assume you take a draft for 100 dollars in favour of Mr. ABCD. If you don't cross it, Mr. ABCD can en cash it without having a bank account. However if you cross it the money will go only to a bank account. So, at any point of time you can prove that you had indeed paid to Mr. ABCD. Another added benefit is in case the draft is lost, any body with the same name can claim the cash.

Thus you get two benefits : Added security as well as a proof.
6 people found this useful
Thanks for the feedback!

What is the difference between cross demand draft and account payee demand draft?

A Demand Draft is a banking instrument . In any case, if it is not crossed, it is bearer, meaning thereby that the bearer, anyone who is presenting it to the bank can get it e (MORE)

What is the difference between demand draft and crossed demand draft?

Explanation 1:    A Demand Draft is a banking instrument . In any case, if it is  not crossed, it is bearer, meaning thereby that the bearer, anyone  who is presenting (MORE)
In Banking

How do you take demand drafts?

You need to visit any bank branch near you and submit a form for demand draft issuance. Once you enter the details of the person to whom the draft should be paid, the amount e (MORE)

How do you withdraw money from a demand draft?

f I got your question right then a DD has been issued from bank XYZ  in your name and you want to deposit it in ABC. I don't see a  problem in this. If the DD only has your (MORE)

10 Worst Sports Franchises of All-Time

The Loveable Losers are difficult to hate unless you are a Cardinals or White Sox fan. The Cubs organization is so inept that despite having plenty of resources, it has been 1 (MORE)
In Texas

Houston Texans Professional Football History

Professional football was a part of the Houston area for many years with the successful National Football League (NFL) Houston Oilers franchise. When owner Bud Adams decided t (MORE)
In Odds

9 Biggest Sports Gambling Scandals

The Black Sox Scandal occurred during the 1919 World Series. The commission accused eight players of throwing the series in exchange for money. While the courts did not find t (MORE)

What is the procedure to cancellation a demand draft?

A Demand Draft can be cancelled by the person who took it provided it has not yet been encashed. You need to visit the bank branch where you took the draft and submit a reques (MORE)

What is demand draft?

Demand Draft is used by individuals to make transfer payments from one bank account to another. Demand Drafts are marketed as a relatively secure way of cashing checks. The di (MORE)

How do you fill up a demand draft?

You will fill out the name of the person you want to send the money  to, name of the bank you will send the money to, the amount you  will send, commission, and you, the sen (MORE)

Where is MICR No in a Bank demand draft?

MICR stands for Magnetic Ink Character Recognition. It is used by banks to identify the details like customer account number, bank branch code, bank code etc. almost all banks (MORE)

How i make the demand draft?

You can walk into any bank's branch and ask them for a demand draft requisition form. Once you fill the form and pay the money required the bank will issue you the DD you want (MORE)