Demand draft pg 29 it is an instrument on demand for

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DEMAND DRAFT pg. 29
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It is an instrument on demand for which value has been received, issued by the b ranch of the bank drawn i.e. payable at some other place (branch) of the same bank. Demand draft can also be issued by one branch of the bank payable to other branch o f the other bank e.g. DD issued by AKBL payable by MCB. iii. Cash department Cash receipt section In this section the cashier in following manner receives cash: Process of deposits Cash Payment section: In this section honoring the cheque through following process makes payment. Process of Payment Chaque pg. 30
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iv. Clearing department: MEANING OF CLEARING : The word clearing has been derived from the word “Clear” and is defined as “ a system by which banks exchange cheques and other negotiable instruments drawn on each other within a specific area and thereby secure payment for their clients through the Clearing At specified time” in an ef ficient way”. 1. Since clearing does not involve any cash etc. and the entire transaction take place through boo k entries, the number of transaction can be unlimited. 2. No cash is needed as such the risk of robbery, embezzlements and pilferages are totally elimin ated. 3. As major payments are made through clearing, the banks came manage cash payments at the c ounters with a minimum amount of cash in vaults. pg. 31
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4. A lot of time, cost and labor are saved. 5. Since it provides an extra service to the customer of banks without any service charges or cost s, more and more people are inclined and attracted towards banking. Through NIFT clearing is made either Intercity or within city clearing lets understand what NIFT is and how it is working: NIFT - National Institutional Facilitation Technologies: National Institutional Facilitation Technologies (Pvt.). Ltd. was incorporated in Septembe r 1995 as joint venture between a consortium of six banks and entrepreneurs from the private sect or. All commercial banks and all of their branches in major cities avail NIFT’s services. As of Ma y 2009, 40 commercial banks and their 5571 branches in 185 major cities, 20 data centers utilize NIFT’s services. NIFT has setup elaborate data centers geared to provide automated services for document proces sing particularly in the payment arena. Modern image based facilities have been established at K arachi, Lahore, Islamabad, Peshawar, Rawalpindi, Hyderabad, Multan, Faisalabad, Quetta, D.I.Khan, Sialkot, Gujranwala, Sukkur, Bahawalpur, Muzaffarabad, Jhelum, Abottabad, Mirpur, Sahiwal and Sargodha. The services include cheques clearing, reconciliation, ‘return’ (unpaid) cheques processing, same day clearing (express – 2 hrs. clearing service), intercity clearing and inter branch & inter bank s ettlement. Services are provided at individual branch level to over 5571 branches in 184 major ci ties and smaller cities.
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