This document discusses various aspects of demand drafts (DDs), including: 1. Key features of DDs such as being payable to order on demand and not made payable to bearer. 2. Security features of DDs like watermarks and how to handle stop payments, duplicate drafts, and payments of original vs duplicate drafts. 3. Guidelines for situations like an unsigned DD presented for clearing, a customer requesting a duplicate DD without providing an indemnity bond, and an old RBI draft being presented for payment. 4. How to handle requests for bearer DDs and DDs presented for payment where the issuing branch is missing.

2. • Definition NI Act 85(A)
• Payable to order on demand
• Not made payable to bearer
• Features similar BOE
• Bank Failure
• Signature on Demand Draft
• Prior Arrangements
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4. • Security Features in DD
• OT, TT, OL, TL
• 0, 1, 2, 3, 4, 5, 6, 7, 8, 9
• stationery
• Crossing
• Demand drafts (Cheques)
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5. • Relationship
purchaser
payee
• Stop Payment of Demand Draft
(purchaser, Payee, Bank, Court)
• Cash Receipt/Payment
• Duplicate Demand Draft
(Purchaser, Payee)
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6. • Payment of Duplicate/original
• Presented together
• Original is already Paid
• If duplicate is already paid
• Original presented before the
duplicate
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7. • Validity
• Revalidation
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8. • How do you handle a situation where
• 1. A Demand draft issued by your other
branch is
presented through clearing is unsigned
2. Customer is not ready to give an
indemnity
bond but he wants the duplicate Demand
Draft
3. RBI Draft brought by your Customer is 8
months old. Can you make the payment?
4. Customer comes and demands for bearer
Demand draft when cheques are issued
why
not DD
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9. • A person not having account with the branch
presents a Demand draft for Rs 5000 on the
counter . What is reaction ?
• A Demand draft presented for payment where
issuing branch name is missing. What is your
reaction ?
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