Question

Why is a bank draft a safe mode of money transfer?

Answer 1

1. 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.
2. It is safe because its amount is credited to the account of the person named in it.
3. The person who wants to purchase a draft fills in the prescribed form available with the bank.
4. The form duly filled in along with the amount of the draft plus commission is paid to the bank, who issues the draft.
5. He then sends the draft to the receiver by post or courier.
6. The receiver can get the amount of the draft from the concerned bank.