DD Services(Demand Draft)
A demand draft is a written order, signed by two authorized officers made by the drawer (issuing bank) to a drawee bank to pay a specified sum of money to a Payee upon presentation of the instrument.
Features
- Available in most currencies of the world with unlimited amounts.
- Originated by account or non-account holders.
- The buyer is provided with an advice of purchase together with a demand draft cheque.
- Commission charges are to be levied.
- Transfer facilities are available worldwide.
- Demand Draft is being refunded in case of loss after receiving a stop payment notice from the correspondent bank, or can be refunded on presentation of original draft on request.
- Commission charges are to be collected on stop payment or cancellation.
- Valid for three months.
Advantages
- Demand drafts are easy to cash from the banks.
- They are considered security instruments.
- There are payment arrangements in most countries.
- They are easy to carry, contrary to the cash notes.