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Briefly explain the process of obtaining a Demand draft? |
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Answer» An applicant for a Demand Draft is required to fill in a DD Request Slip, mentioning the amount, payee's name, issuing branch, location the draft should be payable at, his name, signature and account number etc. In most cases, the purchaser of the draft is an account holder with the bank, hence he can authorise the bank to debit (that is, take out funds from) his account either through a Cheque or a debit mandate. The Cheque should be drawn in favor of “Yourself for the issue of DD favoring XYZ ", where XYZ refers to the payee of the DD. The banker will debit the account of the account holder and issue a DD in favour of the beneficiary. The purchaser of the Demand Draft will send it to the beneficiary who will deposit the DD in his Bank account. Beneficiary’s Banker will clear the cheque through the clearing process. On clearance, Beneficiary’s Bank will credit the Beneficiary account |
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