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Difference between a pay-order and draft?
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Answer / priyank kaushik
Both pay orders and demand drafts are used by individuals
to make transfer payments from one bank account to another.
The main difference between the two is that while a demand
draft is a written order directing the payment to be made
to a third party outside your city, a pay order is drawn
for the third party within your city.
They both are, however, different from cheques in that they
don’t require a signature in order to be cashed. The
banking dictionary refers to the person writing the draft
as the drawee, the bank making the payment is the drawer,
or the payor bank. The beneficiary of a demand draft, the
person receiving the payment, is the payee. Charges for
demand drafts and pay orders are independent of inter- or
intra-city transactions but are calculated as a percentage
on the amount of the draft or pay order.
| Is This Answer Correct ? | 68 Yes | 11 No |
A Pay order is a banker's chq since drawn/payable locally
whereas the draft can be taken any part of the country.
| Is This Answer Correct ? | 65 Yes | 14 No |
Answer / saadat abbas
The basic difference between the demand draft and the
payment order is that demand draft is out of the city while
payment order is for within the city
| Is This Answer Correct ? | 33 Yes | 6 No |
Answer / aisha
Demand Draft and Pay Order, both are payment
instruments.The main difference between these two is that
demand draft is a written order directing the payment to be
made to a third party outside your city,while a pay order
is drawn for the third party within your city. There are
three parties involved:
Drawer: Issuing Bank or the bank providing the service.
Drawee: The bank on which the draft is drawn.In other
words,the bank who undertakes to make payment.
Payee: Recipient or the person to whom the payment is to be
made, also called beneficiary.
| Is This Answer Correct ? | 13 Yes | 4 No |
Answer / lokesh
to payorder we can make a payment in the same issued bank
with in the city and dd can make am payment any where any
branch. but both can be send in outwardclearing
| Is This Answer Correct ? | 7 Yes | 3 No |
Answer / parkash kumar
The basic difference between the demand draft and the
payment order is that demand draft is out of the city while
payment order is for within the city
| Is This Answer Correct ? | 5 Yes | 3 No |
Answer / muneer bukhari
DIfference: pay order is payable with in the city while the
draft is payable outside the city.
| Is This Answer Correct ? | 5 Yes | 3 No |
Answer / muhammad zulqarnain
DD is payable to same bank other branches, while PO is payable on the issuing branch. DD is a mode of remittance while Pay order is not.
DD is a negotiable instrument while Pay order is not. Payment of DD is made from place to place, while pay order is paid locally.
| Is This Answer Correct ? | 2 Yes | 7 No |
Answer / gaurav kumra
clearing of which is same clearing house of RBI is pay
order. on the other dd is which the clearing house of RBi
is different is DD.
| Is This Answer Correct ? | 5 Yes | 11 No |
Answer / shuggie
i think it is when you live within the city limits you have
to do that but if not find somewhere to do that
| Is This Answer Correct ? | 1 Yes | 9 No |
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