explain Bank draft with a good example plzzz .. i'm not able to understand it properly
Bank Draft- It is a piece of paper that is issued at a person's or an organisation's name. The person or the organisation whose name is engraved on the draft is only eligible to encash that amount (mentioned on draft) in his/her bank account. It is quite similar to a cheque.
For example - Bank draft facility is used by a number of academic institutions to make sure that the amount gets transferred to their account in a secured manner. This is because once the name of the institutions gets engraved on the draft by the depositor, the amount can only be transferred to the institutions' account.
For example - Bank draft facility is used by a number of academic institutions to make sure that the amount gets transferred to their account in a secured manner. This is because once the name of the institutions gets engraved on the draft by the depositor, the amount can only be transferred to the institutions' account.