alexa
Indianmoney.com Missed Call Number
Home Articles Bank Draft

Bank Draft

IndianMoney.com Research Team | Updated On Monday, November 17,2014, 05:04 PM

5.0 / 5 based on 1 User Reviews

Bank Draft

 

 

A bank draft is an order drawn by an office of a bank upon another office of the same bank by instructing the other office to pay a specified sum to a specified person or his order. Drafts can be issued against cash or by debiting a client’s account.

Features of draft

  • A draft is issued by a bank on one of its branches
  • A draft cannot be payable to the bearer
  • The relationship between the purchaser of the draft and the banker will be that of creditor and debtor
  • The purchaser of a draft can have it cancelled before it has been delivered to the payee by returning the draft
  • The purchaser cannot cancel the draft after it has been delivered to the payee
  • A bank cannot refuse to pay the amount unless there is some doubt on the identity of the person presenting it.

Liability of collecting banker

The collecting banker is liable for the following :

  • For the genuineness of endorsements
  • For opening account without introduction
  • If he does not present cheques within a reasonable time

 

Did you find this article useful? You can Rate us
5.0 / 5 based on 1 User Reviews
Article Author

IndianMoney.com Research Team

The research team at IndianMoney.com comprises of certified and experienced professionals who share the company's vision to make every Indian financially literate by equipping every Indian with right and unbiased advice. IndianMoney.com research team provides newsletters, articles, videos and FAQs on various financial products and concepts only to help you make wise financial decisions.

Subscribe to our Youtube Channel

 
Get the Best Financial Advice on Personal LoanClick Here

Most Popular

Why one must never neglect estate planning

07 January 2014, Tuesday

Things to Know About Hybrid Mutual Funds

26 November 2013, Tuesday

What is Car Insurance? Why is it important?

21 October 2009, Wednesday

Latest Stories

Personal Loan for Self Employed

19 September 2018, Wednesday

What Is A Government Bond?

19 September 2018, Wednesday

Unsecured Loan

18 September 2018, Tuesday

MCLR vs Base Rate

18 September 2018, Tuesday

Popular Tags

GST
UK
 
Get the Best Financial Advice on Personal LoanClick Here

Calculators

Get It now!