Talk:Demand draft

Indian Practice
In Indian Banking practice, a Demand draft refers to an instrument issued by a Bank at the request of a Customer. It is payable to a specific named person and payable at a specified location. For example, a Demand Draft issued by State Bank of India, Mumbai Branch at the request of Customer A, payable to B at State Bank of India, Chennai Branch. It can be issued payabale at a Branch of the same Bank or even at a Branch of a different Bank. A Demand Draft is impicitly guaranteed for payment by the issuing Bank. Murugan2008 (talk) 07:26, 21 May 2008 (UTC)


 * Sounds like what we call a Cashier's Check in the U.S. Jlygrnmigt (talk) 14:52, 7 January 2009 (UTC)


 * Outside the US, especially in the Commonwealth (ex-British colonies), a Demand Draft operates exactly like a Cashier's Order (in the US, a Cashier's Check).


 * The difference is historical, Cashier's Orders were cleared locally, while Demand Draft's were cleared at the National Clearing House. Cashier's Orders have a lower commission charged by the issuing bank.  They also clear faster (next business day); National clearing in India would be between 7 and 15 days.  Both are guaranteed by the issuing bank.


 * This distinction is now historical, after the dawn of electronic clearance and cheque truncation. The terminology survives, as does the difference in fees.


 * In Singapore and HK, local banks will give you a Cashier's Order if payable locally, and a Demand Draft if payable abroad. --Sanjeev "ghane" Gupta 10:38, 11 November 2009 (UTC) —Preceding unsigned comment added by Ghane (talk • contribs)