What is the difference between Banker's Cheque and Demand Draft?

Answer 1

A banker's cheque is a bank cheque drawn on the bank's currency, not your account, although the money may have come from your account. Example: a cashier's cheque.

A demand draft is mainly used in International transactions whereby the draft is issued in one currency but can be cashed in another currency. It is payable upon demand meaning upon presentation at the bank's counters it can be redeemed. In basic terms it is nothing more than a cheque issued on an account that can be cashed in many different currencies.

Answer 2

A 'Demand Draft' is that negotiable instrument wherein the amount mentioned on the draft has to be paid by the drawee bankers on demand, that is, when the draft is presented to them for payment. A 'Pay Order' is also a negotiable instrument wherein the drawee bankers have to pay to the person or organization in whose favour the pay order is made, or on order, i.e. if the person or organization orders that the Pay Order is to be paid to someone else, when the pay order is presented to them for payment. The difference between a Demand Draft and a Pay Order is that a pay order is always issued locally, while a Demand Draft is issued when the issuing Banker and the drawee banker are situated at different cities or towns.

Answer 3

A bankers check (in some countries also called cashier's check) is usually drawn payable at the same office of the bank that issued it, and so is normally drawn in the same currency of the place. Local practice may permit such checks to be paid at other centers of the same bank too.
A demand draft is drawn by one office of a bank on another office of the same bank OR on an office of a correspondent bank of the issuing bank. Thus a demand draft can be in the currency of a country other than that of the issuing bank. In this case too, local regulations at the place where the draft is drawn upon may permit the payment of the draft amount at other centers also, not only at the center where it is drawn.

Answer 4

one you pay for and the other one you owe