Demand Draft

Demand Draft is a written order for making payments. It is also called in short form as DD ( Demand Draft ). The person making payments is called drawee and the recipient is called payee. The bank providing the service is called drawer.

Demand draft can be of two types, Sight Draft or Time Drafts.

Sight drafts allows money transfer only when proper documents are produced on sight. While time drafts allows money transfer after the specified time ( a future date ).

Also check out detailed blog post on demand drafts at MoneyGuideIndia.Com