6. What is the difference between Cheque and Demand Draft?
Cheuqe is a negotiable instrument instructing a bank to pay a specific amount from a specific account held in the maker/depositor name with that Bank. Issuer account balanced once check is honored and credited to receiver bank account. Cheque can be bounced. A demand draft is an instrument used for effecting transfer of money. It is a negotiable instrument. Balance is deducted from account once Draft is issued from account. DD cannot be bounced.
