A SPECIAL POST FOR THOSE WHO HAVE PAID THROUGH DEMAND DRAFT.
Although Demand draft mode of payment is the most safest payment method, but it lacks some features that Credit card users enjoy.
While using the demand draft as a method of payment, we will have to see the considerable delay in hearing some news from CIO as we can't have any track over the clearing procedure.
I have seen many forum members including me getting panic when we don't hear where we stand ! !
Now consider the below mentioned scenario so that we can understand the procedure for the clearance as informed by my bank's forex department.
My bank forex department has explained me whole procedure along with the example which I am quoting below.
For e.g.
1. An applicant will approach a bank say ABC bank, forex department, Mumbai, India to purchase the demand draft of xxxx amount Canadian dollar.
2. ABC Bank will take the request and will draw a demand draft in payable a Canada on KKK bank, Toronto branch (or any other city branch where they have got their tie ups OR there own branch) and will intimate the KKK bank, Toronto branch about the xxxx amount the receiver's name as well as remitted by name.
3. Applicant will send that demand draft along with the application and after completing the completeness check CIO will initiate procedure for demand draft encashment.
4. Suppose CIO, has their account with XYZ Bank, Sydney Branch, NS. Now Demand draft of an applicant will be presented to XYZ Bank, Sydney branch.
5. XYZ Bank, Sydney branch will send this demand draft to the KKK bank, Toronto Branch for encashment PHYSICALLY. Once again I repeat instrument (demand draft) should be sent physically yo KKK Bank, Toronto Branch, in order to get it honored.
6. Upon receipt of the instrument at KKK bank, Toronto Branch, instrument will be verified for the authenticity and bank records will be checked and when bank officer is satisfied they will intimate the XYZ Bank, Sydney branch and will honor the instrument and transfer the payment to CIO account in XYZ Bank, Sydney Branch.
7. This is the point from where CIO account will be reflecting the successful payment received and file will be proceeded further for the PER generation.
Now comes the real calculation of the delays
Day 1 = CIO will present the instrument at their XYZ Bank, Sydney branch for getting the payment. XYZ Bank will further check whether where this instrument has to be sent for the clearing (in our e.g. KKK Bank, Toronto). XYZ Bank will send the instrument to Toronto for clearing. If XYZ bank uses normal post it will take around 4 days to reach Toronto. (As per Canada Post website) Hence,Day 2, Day 3, Day 4, Day 5. (Please exclude weekends)
Day 5 = Instrument will reach at KKK Bank, Toronto and will be verified with the records and will be given the clearance. Either on same day or next day i.e Day 6, XYZ Bank, Sydney branch will receive intimation for the clearance if given electronically. If given physically, we have to again wait for another 4 working days in transit. i.e. ( 6 + 4 = 10 days for physically intimation to XYZ bank Sydney branch)
Hence the people with payment mode of demand draft will experience the delays of 6-10 days as compared to people with CC.
I Hope this will clear the confusion.
