Bank Drafts / Pay Orders

Bank Drafts/Demand Drafts

A Demand Draft is a much safer and certain method of payment than cheques, since in the case of cheques, an individual is the drawer and hence the cheque can be dishonoured by the drawee bank due to insufficiency of funds in the drawer's account. But since in the case of a DD, the drawer is a bank, payment is certain and it cannot be dishonoured. This is also one of the oldest forms of remittance of funds.