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banks generally issue a duplicate draft in lieu of the original reported lost.before the duplicate draft is issued, the purchaser indemnifies the bank against liability in case of the lost draft being presented by someone who has obtained a good title to it.the indemnity should cover the amount of the draft and all cost and expenses reasonably incurred by bank in establishing the title of the person presenting the draft.

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Is it possible to cash a bank draft immediately?

Yes, it is possible to cash a bank draft immediately at the issuing bank or at a bank that has a relationship with the issuing bank. However, some banks may place a hold on the funds for a certain period of time before they are made available to you.


What is bank drat?

A Certified Bank Draft refers to a Demand Draft that is signed/certified by an authorized bank official. It means that the Demand Draft is a valid monetary instrument and the money value mentioned in the draft would be paid by the issuing bank to the customer anytime in the near future (3 months before which the Draft expires) and there is no way the bank can refuse payment on it.


A bank draft is guarenteed to be there by whom?

Bank drafts are cheques drawn by a bank usually on its own Head Office and may require two signatories such as bank managers. They are guaranteed to be there by your bank and by the customer doing the purchasing. Before a bank draft is guaranteed they make sure that you have enough money to cover it before they grant you a bank draft.


Sources of business finance?

bank over draft that is short and long term, sub contracting, debentures, issuing share, mortgage, leasing,


Can a demand draft once issued can be cancelled and we get money back?

Yes it can be cancelled any time by the drawer from the issuing bank itself. Draft has same features like a cheque.. It can be forged or counterfeited and can be cancelled any time before encashment. Therefore, exercise caution while dealing with drafts. In order to protect the beneficiary, banks must adopt a principle that whilst drawer put forward a request for cancellation of a draft, the issuing bank must ask any authenticated communication from the part of beneficiary. This, may, however protect the beneficiary interest.

Related Questions

Is it possible to cash a bank draft immediately?

Yes, it is possible to cash a bank draft immediately at the issuing bank or at a bank that has a relationship with the issuing bank. However, some banks may place a hold on the funds for a certain period of time before they are made available to you.


How can you find the bank name in demand draft?

The name of the bank issuing the demand draft is usually imprinted on the top or bottom of the draft. It is usually printed in bold font which is easily identifiable. Even the details of the branch issuing the draft can be found in the draft.


What does certified bank draft means?

A Certified Bank Draft refers to a Demand Draft that is signed/certified by an authorized bank official. It means that the Demand Draft is a valid monetary instrument and the money value mentioned in the draft would be paid by the issuing bank to the customer anytime in the near future (3 months before which the Draft expires) and there is no way the bank can refuse payment on it.


What is bank drat?

A Certified Bank Draft refers to a Demand Draft that is signed/certified by an authorized bank official. It means that the Demand Draft is a valid monetary instrument and the money value mentioned in the draft would be paid by the issuing bank to the customer anytime in the near future (3 months before which the Draft expires) and there is no way the bank can refuse payment on it.


What will happen if there is a small mistake in a demand draft?

It depends on what the mistake is. Usually, a draft would not be cashed by any bank if the draft does not have a clear date, payee name and amount along with signature of a certified authority of the issuing bank. If you feel that any of these values are printed/written illegibly or wrongly in the draft you can ask the draft issuing bank to re-issue the draft.


A bank draft is guarenteed to be there by whom?

Bank drafts are cheques drawn by a bank usually on its own Head Office and may require two signatories such as bank managers. They are guaranteed to be there by your bank and by the customer doing the purchasing. Before a bank draft is guaranteed they make sure that you have enough money to cover it before they grant you a bank draft.


Sources of business finance?

bank over draft that is short and long term, sub contracting, debentures, issuing share, mortgage, leasing,


How does a demand draft work?

A Demand Draft is an instrument that is used for exchange of money between two people. It is similar to checks with a small difference. You need pay the amount for which you wish to take a draft, to the bank that is issuing the same. The bank may charge you a fee for creating the draft for you. Once done, the draft is as good as liquid cash. The draft is usually created with a customer as Payee. All that person has to do is, visit the bank that issued the draft and provide a valid ID and encash it and he would be paid the money the draft is worth.


Is issuing a bank draft cheaper than a check?

No, because banks charge a fee to issue bank drafts, but if you have a checking account, and don't care about fancy options, your bank will probably issue you a book of checks for free.


Can a demand draft once issued can be cancelled and we get money back?

Yes it can be cancelled any time by the drawer from the issuing bank itself. Draft has same features like a cheque.. It can be forged or counterfeited and can be cancelled any time before encashment. Therefore, exercise caution while dealing with drafts. In order to protect the beneficiary, banks must adopt a principle that whilst drawer put forward a request for cancellation of a draft, the issuing bank must ask any authenticated communication from the part of beneficiary. This, may, however protect the beneficiary interest.


How do you get the money from Bank Draft?

how do you the money from the bank draft?


What is an example sentence with the word bank draft?

A check is a type of bank draft. The Savings and Loan issued a bank draft to cover the amount. They sent a bank draft to the utility company.