What Is Demand Draft And How It Is Different From Cheque:– In the cashless transactions, a person can send money to another person’s account by check, dd, net banking, mobile wallet, RTGS, NIFT, IMPS, etc. There will be many of you who are not yet aware of DD ie Demand Draft. We are going to tell you what happens in Demand Draft Banking and why it is safe from checks also.
What is Demand Draft (DD)
Money is deposited in the account of a person or firm by Demand Draft. The biggest thing in this is that even if you do not have a bank account, you can make a demand draft from any bank by giving cash. And if you have a bank account, you can get a demand draft from your bank branch to get the money deposited in another account. In this case, the amount of DD will be deducted from your bank account.
DD is more secure than check
We all use mostly cheque instead of DD to transfer money. But perhaps many people do not know that sending money by DD is more secure than a cheque. Let us know why the Demand Draft has its advantages.
DD is the biggest feature of DD on account only – the name of the DD we have created will be inked in his account. If a DD is lost, no one can misuse it, while if the cheque of the self is lost, then the recipient can get money by becoming a bearer himself.
A check may bounce but DD does not bounce: DD is created only when there is as much money as DD amount in the account or you are making DD by giving cash. So it never bounces. While cheque can bounce if there is not enough money.
No need for a bank account: – To make DD, it is not necessary that you have a bank account, you can make DD by making cash payment.
Where is DD Demand Draft used?
For most of the Education Institute and many jobs, DD is used as a Fees Transfer.