Question

What is the meaning of drawn on in demand draft?

Answer 1

Answer:

A demand draft is a bill that is used to exchange and is payable as per the demand on sight.

The party that wrote the draft is called drawer and the drawn is the party is expected to pay is known as the payer.

The payee will receive the payment from the party.

Explanation:

Answer 2

It means to issue a check in order to withdraw money from a bank account.

• A check is written by an individual, but a demand draught is issued by a bank.
• Additionally, a demand draught is drawn by a bank employee, whereas a check is drawn by a bank customer.
• Demand draughts cannot be stopped in the middle of payment like checks may.
• An official check is a written, dated, and signed document that instructs a bank to pay the bearer a certain amount of money.
• The person or organisation who writes the check is referred to as the payor or drawer, while the recipient of the check is referred to as the payee.
• On the other side, the bank on which the check is drawn is the drawee.

Hence, it means to issue a check in order to withdraw money from a bank account.

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