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Question
What is a bank draft?
Answer in Brief
Solution
- A bank draft is a type of cheque drawn by a bank either at its own branch or at another bank. in favour of a third party.
- It is payable to the person named in it or to his order. It Is always payable on demand and is, therefore, also known as 'demand draft'.
- A bank draft is the most convenient and safe means of sending money from one place to another.
- It is safe because its amount is credited to the account of the person named in it.
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Bank Draft
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