Demand draft - wikipedia Demand draft A specimen demand draft. 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. Contents 1 Definitions and regulations by region 1.1 In United States 2 See also 3 References Definitions and Regulations by region In United States Demand 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. In US, remotely created cheques are also called demand drafts. Remotely created cheques are orders of payment created by the payee and authorized by the customer remotely, using a telephone or the internet by providing the required information including the MICR code from a valid cheque. They do not bear the signatures of the customers like ordinary cheques. Instead, they bear a legend statement `` Authorized by Drawer ''. This type of instrument is usually used by credit card companies, utility companies, or telemarketers. Remotely created cheques are susceptible to fraud. See also Cashier 's check Money order Traveler 's cheque References ^ Jump up to : SS Gulshan ( 1 January 2009 ). Business Law. Excel Books India. p. 285. ISBN 978 - 81 - 7446 - 689 - 1. Retrieved 1 January 2015. ^ Jump up to : Roger Miller ; Gaylord Jentz ( 26 September 2007 ). Cengage Advantage Books : Business Law Today : The Essentials. Cengage Learning. p. 417. ISBN 0 - 324 - 65454 - 5. Retrieved 1 January 2015. Jump up ^ `` Uniform Commercial Code : 3 - 104 Negotiable Instrument ''. Legal Information Institute. Retrieved 1 January 2015. Jump up ^ `` Uniform Commercial Code : 3 - 103 Definitions ''. Legal Information Institute. Retrieved 1 January 2015. Jump up ^ The Code of Federal Regulations of the United States of America. U.S. Government Printing Office. 2006. pp. 662 -- 663. Retrieved 1 January 2015. Jump up ^ `` Remotely Created Checks ''. Federal Financial Institutions Examination Council. Retrieved 1 January 2015. Retrieved from `` https://en.wikipedia.org/w/index.php?title=Demand_draft&oldid=808180124 '' Categories : Payment systems Talk Contents About Wikipedia മലയാളം اردو 中文 Edit links This page was last edited on 1 November 2017, at 10 : 47. About Wikipedia

Question: what is the meaning of dd in bank
Answer: demand draft