<P> A demand draft is a negotiable instrument similar to a bill of exchange . A bank issues a demand draft to a client (drawer), directing another bank (drawee) or one of its own branches to pay a certain sum to the specified party (payee). </P> <P> A demand draft can also be compared to a cheque . However, demand drafts are difficult to countermand . Demand drafts can only be made payable to a specified party, also known as pay to order . But, cheques can also be made payable to the bearer . Demand drafts are orders of payment by a bank to another bank, whereas cheques are orders of payment from an account holder to the bank . </P>

What is the meaning of dd in bank