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Different Forms Used in Banks:
A deposit slip or challan is a form supplied by a bank for a depositor to deposit money in the bank.
Let us understand the details to be filled up on the Bank Copy. Most of the same information is filled up on the left side also.
Note: Since authorization is not required for depositing money, anybody can deposit money to any account.
A Withdrawal Slip is a written order to your bank instructing it to withdraw funds from the account. Withdrawal slips vary from bank to bank.A customer can withdraw cash using withdrawal silp only at their home branch.
There are some restrictions on the use of withdrawal slip. They are:
1. Only the account holder can use this slip to withdraw the amount for himself.
2. This form cannot be used to make payment to others.
3. Account holder has to produce the pass book.
Since withdrawal slip cannot be used to make payment to others, we use a form called cheque.
The cheque is a negotiable instrument containing an order to a bank to pay a stated sum from the drawer’s account, written on a specially printed form. It is signed by the drawer. It can be easily transferred through a mere hand delivery. There are three parties to the cheque-Drawer (maker of the cheque), Drawee (bank on which the cheque is drawn), Payee (to whom the amount of the cheque is payable).
Demand Drafts is a pre-paid instrument, wherein bank by whom the DD has been made undertakes responsibility to make full payment. DD is valid for 6 months. Demand draft is accepted where the transfer of money is guaranteed. As most of the individuals make payments through the RTGS, NEFT, IMPS mechanism demand draft is losing it’s place. But still application for job, examinations, admissions, services, high amount purchases etc. requires demand draft rather than cheques.
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