what is meant by demand draft telugu

less than a minute read 02-11-2024
what is meant by demand draft telugu

What is meant by Demand Draft in Telugu?

A Demand Draft (DD) is a financial instrument used to transfer funds from one bank account to another. It is a pre-approved payment order issued by a bank, guaranteeing payment to the payee upon presentation.

In Telugu, Demand Draft is called డిమాండ్ డ్రాఫ్ట్ (Demand Draft).

How does a Demand Draft work?

  1. Request for a DD: The payer approaches their bank and requests a DD for a specific amount in favor of the payee.
  2. Bank's Role: The bank verifies the payer's account balance and deducts the amount of the DD from their account.
  3. Issuing the DD: The bank then issues a DD with the payer's details, the payee's details, and the amount, along with a unique serial number.
  4. Payment to the payee: The payee presents the DD to their bank, who verifies its authenticity and credits the amount to their account.

Advantages of using a Demand Draft:

  • Security: It's a secure method of transferring funds as it is a guaranteed payment order issued by a bank.
  • Convenience: It eliminates the need to carry large sums of cash and offers a convenient way to make payments.
  • Proof of payment: The DD serves as proof of payment for both the payer and the payee.
  • Acceptance: Most organizations and individuals accept DDs for various transactions.

Applications of Demand Draft:

  • Paying bills: You can use DDs to pay utility bills, rent, tuition fees, and other recurring payments.
  • Making deposits: You can use DDs to deposit funds into your bank account or another person's account.
  • Large transactions: DDs are often used for large transactions like property purchases, investments, and loan repayments.

Difference between Demand Draft and Cheque:

While both DDs and cheques are payment instruments, there are key differences:

  • Guaranty: A DD is guaranteed payment, while a cheque relies on the payer's account having sufficient funds.
  • Issuance: A DD is issued by a bank, while a cheque is issued by the individual.
  • Acceptance: Some institutions may prefer DDs over cheques due to their guaranteed payment feature.

Overall, a Demand Draft (డిమాండ్ డ్రాఫ్ట్) offers a safe, convenient, and reliable method for transferring funds in India. It is a widely accepted payment instrument used for various transactions.

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