In modern day and age, everything from payments to banking operations has become digital, thanks to the internet and digitisation. This has affected the banking sector and people’s payment behaviour. Most banking operations have become paperless and people prefer cashless payments as well. In such modernised digital environment, there are a few things that are still non-digital and yet continue to be important. Two of these instruments include cheques and demand drafts.
Both the instruments are commonly used in day to day banking operations. However, most people do not understand the difference between cheque and demand draft. Simply said, the chief difference between cheque and demand draft is that the cheque is issued by the account holder and a draft is issued by the bank. An elaborate description on both topics is given here.