i. A cheque is issued by an individual whereas a demand draft is issued by a bank.
ii. A cheque is drawn by an account holder of a bank, whereas a draft is drawn by one branch of a bank on another branch of the same bank.
iii. In a cheque, the drawer and the drawee are different persons. But in a draft both the drawer and the drawee are the same bank.
iv. A cheque is defined in the Negotiable Instrument Act, 1881, whereas a demand draft has not be precisely defined in the NI Act.
v. A Cheque can be dishonored for want of sufficient balance in the account. Whereas a draft cannot be dishonoured.Hence there is certainty of the payment in the case of a demand draft.
vi. Payment of a cheque can be stopped by the drawer of the cheque, whereas, the payment of a draft cannot be stopped.
vii. A cheque can be made payable either to a bearer or order. But a demand draft is always payable to order of a certain person.
ii. A cheque is drawn by an account holder of a bank, whereas a draft is drawn by one branch of a bank on another branch of the same bank.
iii. In a cheque, the drawer and the drawee are different persons. But in a draft both the drawer and the drawee are the same bank.
iv. A cheque is defined in the Negotiable Instrument Act, 1881, whereas a demand draft has not be precisely defined in the NI Act.
v. A Cheque can be dishonored for want of sufficient balance in the account. Whereas a draft cannot be dishonoured.Hence there is certainty of the payment in the case of a demand draft.
vi. Payment of a cheque can be stopped by the drawer of the cheque, whereas, the payment of a draft cannot be stopped.
vii. A cheque can be made payable either to a bearer or order. But a demand draft is always payable to order of a certain person.
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