Those people, parties even financial institution has vary thinking paradigm about the few terms. The basic terms that may make their financial terms as formal as it should be. The banking world is new insight of dictionary with economic minds. The physical banking is much tough because minor mistake in developing the document to make all procedure again. Therefore, page is going to gave you opportunity to know about the Difference Between Pay Order And Demand Draft In Pakistan. The manual understanding in banking is tough thing but you should know the basic terms about the banking here. The purpose of both documents are same but with different procedure. The usages of demand draft is different as compare to pay order.
Demand Draft or DD
According to the financial rules set in the Pakistan demand draft is pre-paid negotiable instrument. In this situation drawee bank acts as guarantor to make the payment, whenever and wherever the instrument is being presented, there is no delay in payment by the bank to the party. If the payment made outside a city then demand draft uses as financial instrument. This instrument cannot be dishonoured because all payment made before. If the demand draft value is more than Rs. 20,000 or more then that of amount then a A/C crossing can be use.
Difference Between Pay Order And Demand Draft In Pakistan
Pay order or Banker’s Cheque
The same city transaction can be done with the Pay order or also known a banker’s cheque. It is made by the bank on the request of the customer. The amount is prepaid here as well. Remember, that pay order is valid for three months.
Key Difference Between Pay Order And Demand Draft In Pakistan
Here we are going to share you the Difference Between Pay Order And Demand Draft In Pakistan
|Demand Draft||Pay Order|
|Demand draft issued to the specific person from bank of specific person resided in another city from the city of bank.||Pay order issued to the specific person from bank of specific person within city|
|Demand Draft also known as negotiable instrument||It has pre-printed text as “NOT NEGOTIABLE”|
|Any branch of same bank is only authorized to pay||Pay order needs clearance in any branch of city|