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What is crossed demand draft?

Updated: 9/14/2023
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14y ago

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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.

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14y ago
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Q: What is crossed demand draft?
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Related questions

Is crossed demand draft is same as account payee demand draft?

yes


What is the procedure for encashment of a crossed demand draft if the drawee has no bank account?

The only way the drawee can get the money is by opening a bank account and then depositing the crossed demand draft into it. The purpose of crossed drafts is to ensure that the money is paid out only into a bank account. So, there is absolutely no way for you to get the money without opening up a bank account. Also, the name in your bank account must match the name on the draft, otherwise the draft will not be encashed.


Show you the sample of demand draft with demand draft number?

I'm unable to show images as I am a text-based assistant. However, a demand draft typically includes the DD number at the top right corner of the document, along with details such as the issuing bank's name and branch, payee details, date, and the amount specified. The DD number serves as a unique identifier for the transaction.


Show a demand draft with a demand draft number?

which one is the dd number on a demand draft


What is the difference between Demand Draft and Bankers Cheque?

A Demand Draft is a banking instrument . In any case, if it is not crossed, it is bearer, meaning thereby that the bearer, anyone who is presenting it to the bank can get it en cashed... Sometimes you might need to get a demand draft (DD) issued for someone. On certain occasions you may get a Banker's cheque instead. Demand Drafts and Banker's Cheques are almost the same.


What is the meaning of demand draft and normal draft?

is any future of demand draft


What is bankers name in a demand draft?

The bankers name in a demand draft is the name of the bank from where u purchased the demand draft.


How can you find the DD in Demand Draft?

A DD refers to a Demand Draft. Can you explain on what exactly you want to find in a Demand Draft?


Demand draft drawn on?

the bank from which the demand draft has been made


What is the procedure to cancel a demand draft whose validity period has expired?

what is the procedure for the cancellation of demand draft? what is the procedure for the cancellation of demand draft?


What is a demand draft application form?

it is an application used for issuing demand draft


What do you need to make a Demand Draft?

A Demand Draft is essentially a Cashier's Check (or Pay Order). What is required to make a Demand Draft are two components:Name of the Beneficiary (to which the demand draft would be made)and needless to say, the money for the amount of the demand draft.Your bank may affix additional charges for making a demand draft.