21 December 2009
1. Generally an accountholder issue the cheque. But in some cases; where the account is not held; then a person may approach a bank and deposit money into that bank togetherwith some applicable charges. In turn; banks issue cheque in the favour of a desired person by the applicant. This is made when local payments are made.
2. A person may have bank account or not. By depositing in the bank or having money in the account; he fills in an application form with payment of money and charges and thereby takes a cheque from the bank (same as above 1) but which one is payable outstation. This is known as demand draft the payment of which is made by the another branch of the same bank situated outside from the city.