What is difference between demand draft/ pay order/ bankers chaque?

Question

What is difference between demand draft/ pay order/ bankers chaque?

Answer 1

All are same to some extent.

Answer 2

A demand draft is a pre paid negotiable instrument, wherein the drawee bank undertakes to make payment in full when the instrument is presented by the payee for payment. The demand draft is made payable at a specified branch of a bank at a specified centre. In order to obtain payment, the beneficiary ha to either present the instrument directly to the branch concerned or have it collected by his bank through the clearing mechanism.

A banker’s cheque(Pay Order) is another payment instrument which is used by the banks to settle payment obligations on behalf of their customers. This instrument is guaranteed by the bank for its full value and is similar to a demand draft. In practice, these instruments are payable at the branch of issue and are used for payment within the local clearing jurisdiction.

Answer 3

A Banker's Cheque is a Cheque issued locally. A Pay Order, similar to a banker's cheque is also payable locally, the only difference is that in case of a pay order, the bank is directing the payee bank to pay the amount mentioned on the pay order to the person/organisation so mentioned or his order, i.e. any other person/organisation. A Demand Draft is payable for outstations.

Answer 4

Quoting from SBBJ website,

"Banker's Cheque (Pay Order)

Banker's Cheques are issued for making payments locally. Issuance/payment of Banker's Cheque for Rs.50,000/- and above is to be made only through the bank account.

Validity period of Banker's Cheque is 6 months. This can be revalidated by the issuing branch on written request of the purchaser. "

Source Courtesy: http://sbbjbank.com/Policies/citizens_co...

Answer 5

A DEMAND DRAFTis a pre paid negotiable instrument, wherein the drawee bank undertakes to make payment in full when the instrument is presented by the payee for payment. The demand draft is made payable at a specified branch of a bank at a specified centre. In order to obtain payment, the beneficiary ha to either present the instrument directly to the branch concerned or have it collected by his bank through the clearing mechanism.

A BANKERS CHEQUEis another payment instrument which is used by the banks to settle payment obligations on behalf of their customers. This instrument is guaranteed by the bank for its full value and is similar to a demand draft. In practice, these instruments are payable at the branch of issue and are used for payment within the local clearing jurisdiction.

sorry friend i didnot know much details about pay order

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