Demand Draft (DD)

In case of day to day transactions everybody prefers payment in cash. Usually clients use cheques to withdraw money from bank. But there are some limitations in payment using cheques. It may be countermanded (stopping payment) by the drawer or dishonored by the banks. Under this circumstances, Bank Drafts - also called Demand Draft - are the best alternative to cash because these are equivalent to cash. Payment in Drafts are free from any ambiguity. Once the Drafts are issued, the purchaser no longer remains any party to the instrumens. Neither the payment of Drafts can be countermanded (stopped) by the purchaser nor the banks can refuse the payment. Because of these advantages, Demand Drafts are widely used by the business and no-business people to simultaneously avoid ambiguity in payment and hazards of cash remittance.