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what is the difference between cheque and draft

Answer Posted / vikrant

Cheque and Drafts both are Negotiable Instrument, the
difference is that Cheque is issued by An Account Holder
whereas Draft is issued by A Banker. Cheques may get
dishonoured on presentment if sufficient funds are not
available in A/c Holder’s bank A/c, whereas Draft will
never get dishonoured as the sufficient Funds (Cash/Bank)
are transferred from A/c Holders Account / Draft Applicant
paying Cash to Bank’s Account at the time of Issuance of
Draft.

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