Commercial Loan Officer Interview Question:

Please explain what is the difference between ‘Cheque' and ‘Demand draft'?

Submitted by: Muhammad

Both are used for the transfer of the amount between two accounts of same banks or different bank. ‘Cheque' is issued by an individual who holds the account in a bank, while ‘Demand draft' is issued by the bank on request, and will charge you for the service. Also, demand draft cannot be cancelled, while cheques can be cancelled once issued.
Submitted by: Muhammad