What Is Demand Draft? Features and Type of Demand Draft.
Demand draft is a negotiable instrument in which there is an order to pay a certain sum of money by a branch of the bank to another branch to the person/organization.
In the case of demand draft, there are two parties concerned in it one is drawer (bank or any financial institution) and the other is payee (to whom the money is transferred). It is used for transferring money from one spot to another and it cannot be transferred by poor hand delivery.
Types Of Demand Draft
==>> Sight Demand Draft: The type of demand draft in which the payment is made only after the presentment of the specific documents at a scene.
==>> Time Demand Draft: The type of demand draft in which the payment is made only after the specified interval of time.