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What is the difference between bank draft and demand draft?

There is no difference.

The real terminology in the banking language is the demand draft. Bank draft  is a slang used for draft demand.

In fact, it is a way of making payments in which the individual paying the sum buys the demand draft by pre-paying the said amount to his bank and the bank issues the demand draft in favor of the payee and payable on demand at the option of the payee’s designated branch.

This was a commonly used method of payments in the business world for carrying out transactions up to a fee years ago, but with computerization and core banking, they have lost significance because now, more modern methods for transferring sums, such as RTGS, NEFT have come to where money fans are transferred to various banks’ accounts in real time.

And most banks’ checks are charged at every branch of the bank, so there is a need to get demand-issued gas minimized. Demand drafts are now days only required to pay such fees, etc. For example, some applications, etc.

Thanks for reading this article.

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