the other day when i had been to a bank i noted that both cheque and a demand draft (dd) look alike. but i did not get the basic difference in between these two. can anyone give few differences between cheque and dd?Asked 1021 day(s) back
Cheque is something where a person already has an account with the bank and asks the bank where he holds the account to pay a sum specified in the cheque to a payee. In Demand Draft (DD) the customer who wants to send certain sum to a receiver, pays the bank certain sum for what he/she wants DD and also some commission to the bank (if applicable) to get this DD. Give money and take DD whereas you already have money but ask to give it to the receiver for cheque.