My father is the accountant of a company and several times I have heard him saying that the Pay Order has been cleared. I thought it was like a check or something but once I did ask him about it to know exactly what is pay order meaning. He said that it is a financial instrument that is issued by the bank on behalf of a customer giving an order to pay a particular amount to a particular person living in the same city.
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Apart from knowing the definition of the simple meaning of the term Pay order, you now must also know that in pay order, the word Not Negotiable is pre printed. There is no chance of canceling as the amount is prepaid. Once issued, it remains valid for only 3 months. It can be cleared in any branch of the bank within the city.
Whereas a Demand Draft is pre-paid negotiable instrument wherein the drawee bank acts as the guarantor to make payment in full when the instrument is presented. Demand Draft can be cleared at any branch of the bank inside or outside that particular city where it got issued. Pay order is used to make payment inside the city but DD or Demand Draft is usually used to make payments outside the city and this is the main difference between the two.
This is what I got to know about the Pay Order meaning.
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Authors Of The Question
What Is Pay Order In Bank?
Debayan
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1 Answers
2 Year
2022-09-06T09:52:06+00:00 2022-09-06T09:52:07+00:00Comment
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