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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 ----.

ACheque

BDemand Draft

CPromissory Note

DBanker's Acceptance

Answer:

B. Demand Draft

Read Explanation:

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)


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