The pay order is a cheque issued by the bank in favour of a beneficiary. It is also known as the Cashiers Cheque or the Managers cheque. It is issued only against cash by cheque which is debited immediately. It is payable withing the city.

Banker cheque is nothing but pay order issued by the bank where as cheque is an instrument issued by the company, firm or an individual of any Bank...

Pay order provides security of payment to the payee as it is issued by Banker after debiting the amount from customer's a/c