Definition of Demand Draft:
Demand Draft is a cheque that contains an order of one branch of a bank (Drawer branch) directing another branch of the same bank (Drawee branch) to pay on demand a certain sum of money to a specified beneficiary (Payee). Thus there are three parties to a Demand draft e.g. the drawer branch, the drawee branch and the payee. Demand drafts are always payable on demand.
Specimen of Demand Draft:
Specimen of Application form for issuing Demand Draft:
