What is crossed demand draft?

Karin L Business & Finance Supervisor
If you cross a bank draft only an account holder can en cash the same. It is generally safer than the normal bank draft.
Assume you take a draft for 100 dollars in favour of Mr. ABCD. If you don't cross it, Mr. ABCD can en cash it without having a bank account. However if you cross it the money will go only to a bank account. So, at any point of time you can prove that you had indeed paid to Mr. ABCD. Another added benefit is in case the draft is lost, any body with the same name can claim the cash.

Thus you get two benefits : Added security as well as a proof.
6 people found this useful

What is demand draft?

Demand Draft is used by individuals to make transfer payments from one bank account to another. Demand Drafts are marketed as a relatively secure way of cashing checks. The di… (MORE)

Who is drawee bank in demand draft?

A demand draft is a type of check that contains the buyers account  number but not their signature. The drawee bank in a demand draft  is the branch of a particular bank.

Thanks for the feedback!
In Odds

9 Biggest Sports Gambling Scandals

The Black Sox Scandal occurred during the 1919 World Series. The commission accused eight players of throwing the series in exchange for money. While the courts did not find t… (MORE)