why is dd more acceptable than cheque
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“DD is a preferred mode over the cheques as its payment can't be denied as in case of cheques due to insufficient funds. Demand draft charges are not constant and vary from bank to bank and also according to the value of the draft.
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Cheque and Demand drafts (DD) are both negotiable instruments. ... In a business transaction cheque is not usually accepted as the drawer and payee are unknown and there will be credit risk. So, in such cases Demand draft is accepted where the transfer of money is guaranteed.
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