what is the difference between cheque and draft
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An important difference between the two is that a draft can
be issued only when the amount of the draft is submitted to
the bank. Whereas a cheque can be issued irrespective of
whether there is balance in the issuer's account or not.
Incase there is no balance in the issuer's account at the
time when the cheque is presented to the bank for
encashment, the cheque will get bounced.
| Is This Answer Correct ? | 297 Yes | 36 No |
Answer / vyas
Cheque and DD, both are negotiable instruments and to be
honored. But the basic diffrence is, check will be issued
by an account holder and whereas DD can be issued by a
banker only.... Cheque may get rejected due to lot many
reasons....but DD will not get rejected if u present.
(Some DDs were not accepted by Scheduled commercial banks,
as the DDs were issued by some problematic Co-op banks.
There are some other differences too.
| Is This Answer Correct ? | 147 Yes | 20 No |
Answer / durga bhavani
the bank takes a advance from the person who issues adraft
but at the time of check the bank didnt take amount to
issue a cheque.the cheque may be bounce when the balance is
nill in issuer account .
| Is This Answer Correct ? | 150 Yes | 46 No |
Answer / amarjeet
The basic diffrence between the cheque and draft is that.
cheque is like postpaid and the draft is like prepaid.
means if you need to create the draft u have to pay first
to bank then bank will issue the draft. and in case of
cheque it is not needed that your account must have the
balance.
| Is This Answer Correct ? | 78 Yes | 18 No |
Any one Can persume the Draft from bank in favour of others
but Cheque is not like that, to Issue cheque to others you
should maintain A/c with bank
| Is This Answer Correct ? | 51 Yes | 9 No |
Answer / ravi
following are the differences between cheque&draft
cheque draft
1 cheque is a negotiable 1 draft is also nego
instrument which is ordering tiable instrument
to pay certain some of amount which demands to
to certain person pay the amount
2 cheque may no
dishonoured
| Is This Answer Correct ? | 51 Yes | 15 No |
Answer / vijaya kumar
Both are negotiable instruments, by Cheque a account holder
orders the banker to pay this much of money to the person.
Whereas by draft the depositor instructs the bank to pay
the amount to be bearer.
| Is This Answer Correct ? | 46 Yes | 13 No |
Answer / gobu natarajan
For issuing cheques, there wont be any commission if it is
to be transacted in the same bank. But for getting as well
as for cancelling the DD, we need to pay commission. DD can
be acquired from the bank by paying the required amount for
that, whereas the cheque will be worthful only when the
indicated amount is available in your savings account.
otherwise the cheque will bounce.
DD can be used by any unauthorised person if it is not
mentioned as account payee only.
| Is This Answer Correct ? | 39 Yes | 13 No |
Answer / kiran
difference between theses two items is dart is the
liability to the bank so this is issued by bank only.
cheque will issued by account hloder only .
| Is This Answer Correct ? | 32 Yes | 11 No |
Answer / sajid sajjjad
The main difference between cheque and draft is that draft
Provied full(100%) security to the beneficiery that there
is no fear of dishonerd While there is no gurantee that chq
may be dishonored
| Is This Answer Correct ? | 12 Yes | 6 No |
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