A demand draft is a negotiable instrument similar to a bill of exchange. A bank issues a demand draft to a client (drawer), directing another bank (drawee) or one of its own branches to pay a certain sum to the specified party (payee).
A demand draft can also be compared to a cheque. However, demand drafts are difficult to countermand. Demand drafts can only be made payable to a specified party, also known as pay to order. But, cheques can also be made payable to the bearer. Demand drafts are orders of payment by a bank to another bank, whereas cheques are orders of payment from an account holder to the bank.
Definitions and regulations by region
In United States
Demands drafts are also known as sight drafts, as they are payable when presented by sight to the bank. Under UCC 3-104, a draft has been defined as a negotiable instrument in the form of an order. The person making the order is known as the drawer and the person specified in the order is called the drawee, as defined in the UCC 3-103. The party who creates the draft is called the maker and party who is order to pay is called the drawee.
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Hyderabad, Sep (IANS) A top woman Maoist leader in Telangana on Friday surrendered before Director General of Police M. Mahender Reddy ... She was involved in 25 crimes and was carrying a reward of Rs 5 lakh ... The DGP presented her a demand draft for Rs 5 lakh towards her rehabilitation and also presented Rs 5,000 for immediate expenses ... ....
They demanded the release of all Tigray political prisoners (imprisoned for atrocities committed over many years), falsely accused Prime Minister... In response to their international backers’ call for ‘negotiations’ the TPLF drafted a list of preposterous demands for any such talks.
The consultation, in which 85 activists took part, was held under Jan Swasthya Abhiyan (JSA) which demanded that the state government bring about a strong Right to HealthcareAct on the basis of the draft already provided by the Abhiyan to the government.
Hyderabad. Jajjeri Samakka alias Sharada, the wife of former Telangana Maoist leader (late) Haribushan, alias Yapa Narayana, surrendered to the state police on Friday. Sharada has a long history of supporting the Maoist cause ... She received a demand draft of Rs 5 lakh towards her rehabilitation and Rs ... .
The Lebanese government will resume negotiations with the International Monetary Fund while beginning reforms demanded by donors, according to a draft policy programme that aims to tackle one of the worst financial meltdowns in history ...The government will work with parliament to pass a capital control law, the draft document said.
As Covid continues to be with us, government should make an all-out effort to increase and train medical personnel and draft them to meet the demand at hospitals, clinics and institutions by giving them incentives in the form of monetary rewards and perks like subsidized transportation, housing, personal equipment and respect ... .
... met with the president on Wednesday as both have demanded that the $3.5 trillion package be scaled back. In the House, committees have drafted and approved portions of the package but questions remain if Democrats have the votes to pass the package with their small majority.
The court also said that “sanctioning authorities should have also been careful before according sanction for prosecution.” ... “They further obtained 16 demand drafts from M/sEscortLtd. by submitting forged letters and encashed the said demand drafts in violation of rules of the postal department,” the CBI said ... Delhi ... Tags ... X ... .