The following are the main differences between a cheque and a demand draft:
1. A cheque is issued by an individual, whereas a demand draft is issued by a bank.
2. A cheque is drawn by an account holder of a bank, whereas a draft is drawn by one branch of a bank on another branch of the same bank.
3. In a cheque, the drawer and the drawee are different persons. But in a draft both the drawer and the drawee are the same bank.
4. A Cheque can be dishonored for want of sufficient balance in the account. Whereas a draft cannot be dishonoured. Hence there is certainty of the payment in the case of a demand draft.
5. Payment of a cheque can be stopped by the drawer of the cheque, whereas, the payment of a draft cannot be stopped.
6. A cheque is defined in the Negotiable Instrument Act, 1881, whereas a demand draft has not be precisely defined in the NI Act.
7. A cheque can be made payable either to a bearer or order. But a demand draft is always payable to order of a certain person.
M.J. SUBRAMANYAM, BANGALORE
i have know fricking idea. but, watermelon equals fifty
What is the difference between a dd-214 and a dd-256af
what is difference between a current account and a cheque account
hfcuyhalj,nx
A Demand Draft is an instrument that signifies the availability of cash till the amount specified in the DD. It is similar to a cheque in appearance and usage with the difference that a cheque may or may not get cashed but a DD is guaranteed payment. While issuing a cheque you need not have cash in your account but still issue it. But in case of a DD you must have cash and that amount would be debited the moment you issue a DD and the payment would happen when the customer deposits the DD.
Issue a cheque with the name of Yourself and fill the amount
They both mean the same
None.
you spell it different
dd
I do know the difference. What is your question?
The difference is just the spelling. they both mean the same...