LawPage

Notes and Articles for Law students

User Tools

Site Tools


banking_law:postal-money-order

Postal Order & Money Orders : PO and MO

The Postal Order or Postal Note is a financial instrument usually intended for sending money through the mail. It is purchased at a post office and is payable at another post office to the named recipient. A small fee for the service, known as poundage is paid by the purchaser. In the United States this is known as a postal money order. Postal Money Orders are not legal tender, but a type of promissory note, similar to a cheque. The use of Postal Orders was extended to most countries that are now part of Common wealth nations plus to a few foreign countries.

Money Order: A money order is a service provided by Indian Postal Service. A payer who wants to send money to a payee pays the amount and a small commission at a post office and receives a receipt for the same. The amount is then delivered as cash to the payee after a few days by a postal employee at the address specified by the payer. A receipt from the payee is collected and delivered back to the payer at his address. This is more reliable and safer than sending in mail. It is commonly used for transferring funds to payee who is in a remote, rural area where banks may not be conveniently accessible or where many people may not use a bank account at all. Money Orders are the most economical way of sending money in India for smaller amounts. In United States MOs are typically sold by third parties such as US Postal Services, Grocery Stores and convenience stores.


Navigation: Home»Banking Law

Created on 2021/03/17 22:24 by LawPage • Last modified on 2021/04/09 22:09 (external edit)