DEMAND DRAFT
A demand draft is an instrument, which is drawn by one bank upon another bank for a specific sum of money payable on demand. It is made by the bank and given to the purchaser against cash or cheque. If two banks are involved, then one banks sends a DD to another bank. But in customer - Bank case the customer sends his DD to the receiver.
ISSUANCE PROCEDURE
A demand draft application (Annexure--) to given to the customer, he fills in a relevant information and signs it.
- The Officer in charge then checks the information form.
- The charges such as commission, excise duty, postage is charged as per effective schedule of charges. Tax is exempted if he is taxpayer & knows his No.
- In case of cash deposit the cashier counts he amounts & signs the DD application and enters it in the register.
- The cash received equals the amount of remittance & the cheques there on.
- Then the officer of the bills & remittance department signs it and operation manager counter signs it.
- The entry is made in the DD issuing register.
- It is given to the customer.
- Vouchers are passed.
Commission charges Cr
Excise duty Cr - The vouchers and the DD form given for posting at the computer.
- The DD advises are printed at the computer and mailed to the respective branch.
NOTE
On the contra, when a DD is received i.e. a customer comes to us with the DD, the procedure is as follows.
- The DD credit advice is received through mail. The No’s are checked & signatures are verified.
- An entry is made on the DD payable register, and the vouchers are made.
The Branch Dr
DD payable Cr - The DD credit is attached with the vouchers and given for the posting at the computer.
- When DD is received, the test No’s are checked, and the payment is made.
- The vouchers are given for posting. And the entry that was made in register is closed. i.e. DD payable is Nil.
TELEGRAPHIC TRANSFER
A telegraphic transfer is a fastest & safest way to transfer money. The message is fixed.
ISSUANCE
- The request for maintenance through T.T is taken on the standard printed form.
- The customer fills it & signs it.
- The Head & remittance department checks it, the charges such as commission, tax, telex as per effective schedule and signs it.
- If he fills the tax exemption from then no tax is levied.
- Then a neat T.T is made on the white slip. There are 3 copies. The original faxed to the Branch, one to the Head Office and one is kept as record.
- The entry is made in the TT issuing register.
- The following vouchers are posted.
Commission Charges Cr
Fax charges Cr
W.H. Tax. Cr - When commission bill is received, it is attached to the T.T office copy in the file.
PAYMENTS
- When a T.T arrives, the test numbers are checked and the signatures are verified.
- The entry is done in the T.T pay able register.
- The following vouchers are prepared & given for posting.
Head Office Dr
T.T Pay able Cr
T.T Payable. Dr
Party A./C. Cr - If there is no a/c then the T.T receipt needs revenue stamps and
then the payment is made. The T.T receipt is strictly non negotiable.
