Question

An order from one branch to another branch of the same bank, to pay a specific sum of money on demand, to the person named there in his order is termed ----.

• A. Cheque
• B. Demand Draft
• C. Promissory Note
• D. Banker's Acceptance

Answer 1

Answer:

B. Demand Draft

Demand Draft or Bank Draft:

• Sec 85A of the NI Act, a bank draft is an order from one branch to another branch of the same bank to pay a specific sum of money on demand to the person named there in his order. 

Three parties:

• Drawer 

• Drawee 

• The Payee 

(3 months - Negotiable)