Banks Bespeak Draft - Postal Service Telegraphic Transfer - Overdraft

1. What is a Bank Draft or Demand Draft ?

Bank Draft is besides called every bit Demand Draft, inwards short, DD. DD is a exceptional type of cheque. It is drawn past times a bank on whatsoever of the branches of the same bank. It is used for remitting coin from 1 house to closed to other place. It is the cheapest agency of sending money. It is an fellowship to pay coin on demand.

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The mortal who wants to ship the coin has to approach bank, he has to fill upward an application cast together with has to pay the required total alongside committee (bank's service charge). After getting the draft, applicant has to ship it past times post to the political party at the other place.

DD is similar a cheque, thence it tin besides survive crossed. When the other political party receives it, has to introduce it to the depository fiscal establishment for payment. It is the easiest together with safest agency of sending coin from 1 house to closed to other place.

2. What is a Mail together with Telegraphic Transfer ?

Mail together with Telegraphic Transfer is closed to other method of sending coin from 1 house to closed to other house past times using the missive of the alphabet (mail). The post transfer (MT) is possible alone when the sender (remitter) together with the receiver (remittee) both are having depository fiscal establishment accounts inwards the same bank, exactly at dissimilar branches. Generally, no charges are charged past times depository fiscal establishment for post transfer. In this the remitter has to inform his depository fiscal establishment to transfer a sure enough total from his line of piece of employment concern human relationship to the closed to other person's line of piece of employment concern human relationship inwards other branch of the same bank. The details of the remittee (receiver) such every bit his name, line of piece of employment concern human relationship number, the branch where he has account, etc. must survive provided to the bank.

3. What is an Overdraft ? Explain Overdraft Facility

Overdraft is 1 type of loan given past times the depository fiscal establishment to its electrical flow line of piece of employment concern human relationship holder. When depository fiscal establishment allows the current account holder to take away total over together with inwards a higher house the credit residuum every bit per an understanding so it is called every bit Overdraft Facility. Overdraft is a curt term loan exactly it tin survive continued from fourth dimension to time. Banks order this facility later on taking safety or personal guarantee. This overdraft is a form of temporary loan together with depository fiscal establishment charges involvement on actual total which is overdrawn past times the client i.e. line of piece of employment concern human relationship holder. They are allowed to overdraw the total upward to a sure enough confine past times issuing cheques to other parties or for ain line of piece of employment concern use, from their electrical flow accounts. Overdraft facility is given generally, for few months.