Banking Term: Banker’s draft
Find important banking term that is useful in upcoming banking exam.
While cheque is drawn by the bank’s customer, banker’s draft is a cheque drawn by a bank. A banker’s draft is drawn at the request of a customer, and customer’s account is debited when it is drawn.
They are regarded as cash since they cannot be returned unpaid and are used when creditor is not willing to accept a personal cheque in payment.
Which of the following is negotiable instrument?
A. Promissory note
B. Bill of exchange
D. Bank draft
E. Share certificate.