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Problem with demand draft

ankit (student) (111 Points)

24 May 2016

I have to submit a demand draft to the institute for ITTand I have applied for the same with the bank, but the bank has issued me with a bankers cheque of equivalent amount and saying that it's same thing . Now please tell me what to do.

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Anu K S (Cleared CA Final) (195 Points)
Replied 24 May 2016

Dear Ankit, there is no issue. i also had a similar situation when applying for a dd for orientation. the major difference between a dd and banker's cheque is that the former can be encashed at any branch of the bank while the latter has a limited clearing jurisdiction. that is, banker's cheque is usually used within a city. i had made a call to our institute branch to confirm the same. but, you need to make sure that it is 'payable at' the city of the institute branch.

ankit (student) (111 Points)
Replied 25 May 2016

But the bankers cheque issued to me does not bear the name of city where it is to be payable at even while applying for the dd i have clearly wrote the name of city where it is payable at But as the dd was payable locally the bank staff replied me that bcoz of above it will not appear anywhere in the dd( ie bankers cheque issued by them) that where it is payable at

Anu K S (Cleared CA Final) (195 Points)
Replied 25 May 2016

then the name of the bank branch might be there in the cheque. in that case it is sufficient as it will be understood that it is payable at that city.

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