Bank Draft

A bank draft is a financial instrument that is used to make payments. It is similar to a check, but it is drawn on a bank's account rather than an individual's account. Bank drafts are often used for large payments, such as real estate transactions or business purchases.

There are two types of bank drafts: sight drafts and time drafts. A sight draft is payable on demand, while a time draft is payable at a specified future date.

To issue a bank draft, you will need to provide the bank with the payee's name, the amount of the draft, and the date on which it is payable. The bank will then issue the draft and charge you a fee.

When you receive a bank draft, you can either cash it at the bank or deposit it into your account. If you cash the draft, the bank will deduct the fee from the amount of the draft. If you deposit the draft, the bank will credit your account with the amount of the draft minus the fee.

Bank drafts are a safe and secure way to make payments. They are also a convenient way to make large payments, as you do not need to have the funds in your account in order to issue a draft.

Here are some of the benefits of using bank drafts:

* They are a safe and secure way to make payments.
* They are a convenient way to make large payments.
* They can be used for international payments.
* They can be used to pay for goods and services online.
* They can be used to pay bills.

If you are considering using a bank draft, be sure to compare the fees charged by different banks before you make a decision.