DD stands for Demand Draft.
|Full Form||Demand Draft|
|Category||Business » Banking|
What is DD?
Demand Draft(DD) is an order or request for payment, made by a business or individual, to a drawee bank. It is a draft of a promissory note payable on demand. The drawee bank agrees to pay the person or business listed on the draft the face value of the promissory note, plus any applicable interest and fees.
Demand Drafts are used in international trade and finance. They are also known as drawings on bankers. A Demand Draft is an order to pay a certain amount of money at a certain time, usually within one week.
The person who places the order usually prints out the Demand Draft and gives it to the person they want to pay. The person receiving the Demand Draft signs it and puts their name and address on it.
A Demand Draft is similar to a check, but it is not cashed until it is deposited into a bank. When someone deposits a Demand Draft, the bank credits that account with the same amount of money that was printed on the Demand Draft.