Question

Difference between crossed demand draft and demand draft

Answer 1

Answer:

DD cannot be dishonored as the amount is paid before hand. Demand draft is usually used to make payment outside a city. Demand Draft can be cleared at any branch of the same bank. A demand draft of value Rs 20,000 or more can be issued only with A/c payee crossing.

Answer 2

Answer:

Explanation:

In case the Demand Draft is Crossed as Account Payee, it cannot be encashed over the counter from the Bank Branch and can only be cleared by depositing in the Bank Account of the Person in whose favor the DD has been made.