Overdraw
Only a few account holders are given the facility to overdraw from their accounts. This means that one can write a cheque for more than the amount that is available in the account. There is a fee associated for such a facility.
Demand Draft
A Demand Draft or DD is a tool used to transfer money from between two banks. It can be the same bank or two different ones. To explain it in simple words, it is a cheque issued by the bank. It is generally used when the amount of transfer is more. There is a fee associated with this facility and it depends on the amount of money to be included in the DD. It is considered to be the safest way of transferring.
MICR
It is the acronym for Magnetic Ink Character Recognition and is found on cheques, DDs etc. It is a nine digit number that identifies the banks location details. It is useful in clearing checks faster so that money is deposited quicker into the relevant accounts. There are some banks which do not honor cheques from other banks without an MICR. All the cheque books which are being issued in the recent past have this code printed.
NEFT
For all those who wish to transfer money from one bank to another at regular intervals, they need to know about NEFT or National Electronic Fund Transfer. As the name suggests, it is to be done online. There is no fee to use this facility if the transfer is between bank accounts in the same bank. However, if they are different, the amount of transfer decides the fee.
Only a few account holders are given the facility to overdraw from their accounts. This means that one can write a cheque for more than the amount that is available in the account. There is a fee associated for such a facility.
Demand Draft
A Demand Draft or DD is a tool used to transfer money from between two banks. It can be the same bank or two different ones. To explain it in simple words, it is a cheque issued by the bank. It is generally used when the amount of transfer is more. There is a fee associated with this facility and it depends on the amount of money to be included in the DD. It is considered to be the safest way of transferring.
MICR
It is the acronym for Magnetic Ink Character Recognition and is found on cheques, DDs etc. It is a nine digit number that identifies the banks location details. It is useful in clearing checks faster so that money is deposited quicker into the relevant accounts. There are some banks which do not honor cheques from other banks without an MICR. All the cheque books which are being issued in the recent past have this code printed.
NEFT
For all those who wish to transfer money from one bank to another at regular intervals, they need to know about NEFT or National Electronic Fund Transfer. As the name suggests, it is to be done online. There is no fee to use this facility if the transfer is between bank accounts in the same bank. However, if they are different, the amount of transfer decides the fee.