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Q.

Whatz difference btween cheque an dfaft ?

Tags: relationships, education, science
Asked by seema arora, 22 Oct '09 12:15 pm
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Answers (11)

 
1.

Cheque is your instructions to the bank to pay someone some amount it is not guaranteed as you may not have the funds in your account and also you can stop payment before encashment .However a draft is issued after the funds are recieved by the bank and is as good as cash in the hands of payee
Answered by RSehgal, 22 Oct '09 12:37 pm

 
  
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2.

Draft is as good as cash
Answered by anushka desai, 22 Oct '09 12:18 pm

 
  
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3.

Draft is a guaranteed payment.
Answered by dhanendra kumar jain, 22 Oct '09 12:25 pm

 
  
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4.

A cheque is not a guaranteed payment whereas Draft is a guaranteed payment.
Answered by krishna bhojwani, 22 Oct '09 12:21 pm

 
  
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5.

A cheque is either pertaining to a PERSONAL (individual) account or a CORPORATE account. A draft is what you purchase from a BANK to make CERTIFIED PAYMENT to various organisations including sending (remitting) money to an individual's account by debiting your personal account or by paying cash!
Answered by John Mascarenhas, 22 Oct '09 12:18 pm

 
  
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6.

Cheque is instrument issued by you duly signed by you where as DD is issued by bank signed by bankers.
Answered by ram kishore rathi, 05 Apr '10 07:37 pm

 
  
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7.

The basic and most important difference is that it is issued by a Bank on either on its own branch or on other Banks whereas the cheque is normally issued by an individual/firm/corporate and drawn on a Bank's branch where the accounts are maintained. There is a risk of dishonour of a cheque for want of funds but no such risk exists in the case of drafts. S.Lakshmanan
Answered by LAKSHMANAN, 28 Oct '09 09:44 am

 
  
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8.

When we open an accout with a Bank, they give cheques to draw money available in our acount. The cheque can also be issued to a third party for a fixed amount to enable him to encash the cheque from our account in that Bank. So cheque is an instrument provided by the Bank to draw money fom our account.
Whereas the Deman Draft is issued by Bank, at the request of the buyer. The buyer of the demand draft has to furnish the details such as the name of the beneficiary, the amount and the place. After receiving the amount fom the buyer the Bank issues the DD which can be encashed by the payee of the DD at the branch of the Bank where the DD is drawn. As the Bank has already received cash from the buyer of the DD, it is as good as cash to the payee. So the payment of the DD is guaranteed. But in case of the cheque, when it is presented , if sufficient balance is not available in the account the Bank may return the cheque.
Answered by Mahadevan Subramaniapillai, 25 Oct '09 11:53 pm

 
  
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9.

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
nil in issuer account .
Answered by saranathan Narasimhan, 23 Oct '09 03:01 pm

 
  
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10.

Cheques bounce.....drafts don't.

In Indian business sense, unless u r a top corporate w/ top clients, a cheque is just a piece of paper ur buyer gives u to get ur goods for free :D
Answered by A Moin, 23 Oct '09 12:40 pm

 
  
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