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Difference between Pay Order and Demand Draft

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I thnk, that there is one more dimention that PO can not be issued in favour of drawer whereas DD can be issued in favour of drawer so the drawer and drawee can be the same in case of DD ------- is it true

Posted by Abdul Qadir on Fri, 10/24/2014 - 21:45

Demand drafts are used when one person wants to send or transfer money (remit) to another person who is in another city. The person wanting to send money, deposits cash in a bank or issue a cheque in favour of the issuing bank, which issues him a demand draft. The demand draft is sent to the person who is to receive the money. The receiver gives it to the branch/bank where he holds an account and receives the payment. They are valid for 6 months. Banks normally charge a commission for issuing demand drafts.

Payment orders or Banker’s Cheques are similar to demand drafts but are usually issued for payments within a city. These are usually valid for 3 months. Banks may charge a commission for issuing Payment Orders and Banker’s Cheques.( INFORMATION POSTED FROM RBI WEBSITE )

Posted by bharathkandasamy on Mon, 09/22/2014 - 14:19

Amazing words used..Very Simple to Understand..Basic :)

Posted by Gurpreet Kaur Maan on Thu, 05/29/2014 - 21:59

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