What are the characteristics of demand draft?

A demand draft is a financial instrument used to transfer money from one bank account to another, typically across different banks. Key characteristics include its irrevocability, meaning it cannot be canceled once issued, and its requirement for the payer to have sufficient funds in their account at the time of issuance. Demand drafts are considered secure because they are prepaid, reducing the risk of bounced payments. Additionally, they are often used for transactions that require guaranteed payment, such as in business dealings or international remittances.