Demand draft is a kind of service or facility provided by a bank for transfer of money. Draft is a cheque written by a bank on its own branch or on the representative bank. The draft can be drawn on the name of the payee. The person desiring to transfer the money to the another party in another town can issue the draft issued from his bank addressed to its branch location in the town concerned, he has to apply in a prescribed form to get the draft. He has also to pay up the amount of the draft togather with the amount of commission to the bank(both these amounts can be debited with the account if he is an account holder). The bank issuing the draft orders its branch concerned to the specified amount to the person specifically mentioned in draft by a post to the payee. The payee can receive the amount from the bank to which it has been addressed,draft may be crossed also. Amount of the crossed draft is not received in cash but is credited in an account.