Payment Order and Its Features

Payment-Order-and-Its-Features

A payment order is an order drawn by a bank upon itself to make payment of the amount mentioned therein to the demand of the payee. The payment order carries the primary liability of the issuing bank for payment and must make its payment to the payee or some other person named by the payee. It cannot be canceled or the payment cannot be stopped without the consent of the beneficiary. 

Features of Pay Order: 
1. Pay order cannot be dishonored as the amount is prepaid.
2. Pay order is a non-negotiable instrument.
3. This can be cleared at any branch of a bank.
4. This cannot be issued in the name of a minor.

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