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Tuesday, July 27, 2010

What is Demand Draft?

An order to pay money, drawn by one office of a bank upon another office of the same bank for a sum of money payable to order on demand.
Bank/Demand Draft: Also called Demand Draft. It is drawn by one branch of a bank on another of the same bank instructing the letter to pay a specified sum of money to a named payee or to his order. It is payable on demand and its payment can not be countermanded or stopped. Neither it is payable to bearer, because of these advantage, this instrument is used by the customers to make secured payment.

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