Demand draft

A demand draft (DD) is a negotiable instrument similar to a bill of exchange.

For instance, when enrolling in a college, an admission fee is required which can be paid through either cash or a demand draft.

It is not compulsory for the drawer to be a bank customer and a demand draft comes with an official stamp for added authenticity.

[2][4] In the United States, remotely created cheques are also referred to as demand drafts.

Remotely created cheques are orders of payment created by the payee and authorized by the customer remotely, using a telephone or the internet by providing the required information including the MICR code from a valid cheque.