Bank Draft is also called as Demand Draft, in short, DD. DD is a special type of cheque.

It is drawn by a bank on any of the branches of the same bank. It is used for remitting money from one place to another place. It is the cheapest mode of sending money. It is an order to pay money on demand . The person who wants to send the money has to approach bank, he has to fill an application form and has to pay the required amount with commission (bank's service charge). After getting the draft, applicant has to send it by post to the party at the other place. DD is like a cheque, therefore it can also be crossed. When the other party receives it, has to present it to the bank for payment. It is the easiest and safest way of sending money from one place to another place. Mail and Telegraphic Transfer is another method of sending money from one place to another place by using the letter (mail). The mail transfer (MT) is possible only when the sender (remitter) and the receiver (remittee) both are having bank accounts in the same bank, but at different branches. Generally, no charges are charged by bank for mail transfer. In this the remitter has to inform his bank to transfer a certain amount from his account to the another person's account in other branch of the same bank. The details of the remittee (receiver) such as his name, account number, the branch where he has account, etc. must be provided to the bank.

Finance is the life blood of trade, commerce and industry. Now-a-days, bank money acts as the backbone of modern business. Development of any country mainly depends upon the banking system. The term bank is derived from the French word Banco which means a Bench or Money exchange table. In olden days, European money lenders or money changers used to display (show) coins of different countries in big heaps (quantity) on benches or tables for the purpose of lending or exchanging A bank is a financial institution which deals with deposits and advances and other related services. It receives money from those who want to save in the form of deposits and it lends money to those who need it.

Definition of a Bank

Oxford Dictionary defines a bank as "an establishment for custody of money, which it pays out on customer's order."

Remittances (Remittance) is the importer according to the agreed payment conditions and the time the bank pays the exporter through the method of payment. In international trade settlement, it is the most convenient way, but use of the international banks to facilitate the mutual transfer payments, are not related to bank credit, buyers and sellers can perform the contract depends entirely on each other's credit. Therefore, it is purely commercial credit. Money transfer instruments used by the direction of the flow of funds is the same, so is Shun exchange method. A type 1 transfer, mail transfer (Mail Transfer, referred to as the M / T) is the importer (or the debtor, or call the sender) will be delivered to remittance and money transfer fee to a bank (remitting bank), commissioned by the bank by letter asked the location of the payee bank transfer (Huiru Xing), the money paid to the exporter (the creditor or said payee.) The remittance methods, require a regional postal process of time, usually about 7-15 days air mail, depending on regional distance varies. If by courier (Express) can speed up 3-5 days. 2 Telegraphic Transfer (Telegraphic Transfer, referred to as T / T) is the remitter will be a certain amount of remittances and remittance of fees paid to a local bank (remitting bank), requiring the bank notified by telex or cable where foreign payee sub-branches or correspondent (Hui Ruxing) remittances paid to the payee. This transfer included the time difference is generally available the same day or the next day, the most efficient, but the relatively high cost of telecommunications. 3 votes Department (Demand Draft, called D / D) is the remitter to their local bank (remitting bank) to buy bank demand draft and sent directly to the payee, the payee can be received by the bill to the bank withdrawal payment specified. Such bank drafts and bills of exchange against the Department of Commercial Law is different from the valet bank draft funding for banks, so by the votes and the payer is the same bank (or agency). Twenty-three kinds remittance mode program: 1, by wire transfer: the debtor to repay the debts, the money via wire transfer to a creditor, when the outward remittance: 1) wire transfer remitter fill out an application form and payment to the remitting bank payment made wire transfer receipt; 2) export line to increase charges by cable or telex payment order as a settlement tool, generating money for payment commissioned Huiru Xing; 3) Huiru Hang received telegrams, check the TEST KEY match, the versions and wire transfer notice notify the payee withdrawal; 4) Notice of the payee who Huiru Hang in duplicate to the withdrawal; 5) Meanwhile, Hui Ruxing debit payments will be paid notice sent to the remitting bank, complete a wire transfer. 2, transfer: mail transfer processing and wire transfers roughly the same, the difference is that export line should be the sender of the application, not by cable or pay by mail transfer power of attorney power of attorney as a settlement tool plus its signature and mail to Huiru Hang commissioned by the latter for payment remittance. After the latter match the signature verification, that the line for payment been drawn up to inform the remitting bank debit stock arrives. 3, the ticket exchange: the debtor (the sender) in order to repay the debts, the money remitted by way of demand draft creditor (payee). 1) The remitter fill ticket exchange application form and payment to the remitting bank payment; 2) export line to open a bank demand draft to the sender, sent to the payee by the remitter; 3) At the same time, export about to Send Huiru Hang draft notice; 4) the payee bank draft to the Hui Ruxing withdrawals held, Hui Ruxing a draft of the original root (draft notice) After verification, the fare for payment to the payee. Thirty-three kinds of remittance methods similarities and differences as well as any proper use of 1 common denominator: the sender when the commission remitting bank remittance, remittances are to be issued by the application, which formed between the sender and the export of a line types of contract. Transmission among the same direction and capital flows, are smooth exchange. 2 different points: as a wire cable or telex is clearing tool; mail transfer mail transfer power of attorney is a power of attorney as a settlement or payment instruments; ticket exchange in bank demand draft as a settlement tool. Ticket exchange and wire transfer, mail transfer ticket exchange difference is that the Hui Ruxing withdrawals without notice to the payee, the payee ticket door by withdrawals, bill except for restrictions on the transfer and circulation of persons, the endorsement by the payee, for sale in circulation , and wire transfer, mail transfer power of attorney can not transfer circulation. 3, how to apply: EFT is a collection faster, higher cost of a remittance, the remitter must pay cable fees, so usually the larger amount of money or has urgent need to use telegraphic transfer. Mail transfer, ticket exchange do not require power, transmitted by post, so lower cost than wire, but postal relations, collection time later.