Demand Draft A demand draft or "DD" is an instrument most banks in India use for effecting transfer of money.

It is a Negotiable Instrument. To buy a "DD" from a Bank, you are required to fill an application form which asks the following information : Type of instrument needed Name of the recipient Name of the sender Amount to be transferred Place where the transferred money is to be paid Mode in which money is to be paid i.e. in cash or through a Bank Account Mode in which you will pay money to the Bank i.e. in cash or by debit to your account The application form along with the cheque on your account or cash is deposited with the counter clerk who gives you a Demand Draft (which looks like a cheque) for the amount. Tips: Check the particulars like name of the beneficiary, amount, place where payable etc. filled in the DD, match these with what you had filled in the application form. Spellings of the beneficiary's name should be exactly the same. Get the DD "crossed" for security. Your PAN number will be necessary if the amount of DD exceeds Rs.10,000/= Charges for issuing drafts differ from Bank to Bank. So if your requirements are large, do shop around for best bargain.

Mail Transfers or Mail Orders: This is the mode used when you wish to transfer money from your account in Center 'A' to either your own account in Center 'B' or to somebody else's account. In this mode of transfer, you are required to fill in an application form similar to the one for DD, sign a charge slip or give a cheque for the amount to be transferred plus exchange and collect a receipt. The Bank will, on its own, send an order to its branch at center 'B' to deposit the said amount in the account number designated by you. This is, however, a dying product and many banks like State Bank of India have since withdrawn this. Telegraphic Transfers or Tele Orders: This is similar to the Mail Transfer except that the message is sent to center 'B' by way of a telegram and the money is deposited the next day. The mode of instructions nowadays is increasingly the fax. Electronic Mode: More and more banks are now offering electronic mode of transfer of funds like Electronic Transfer System, Cash Management product etc. The remittance of funds

through these modes is much quicker and the time is reduced to hours and in some cases even minutes.