The Basics of a Bank Draft

by Investing School on February 13, 2010

A bank draft is a draft or check that is guaranteed by a bank. It allows a check to drawn by one bank against cash that is deposited into its account located at another bank. It allows the second bank the authorization to make a payment to the individual that is named in the draft. They can be treated like cash and most banks will clear them immediately. There is a catch, however. If it is found that the draft is fraudulent, the bank is permitted to take money back from a cleared draft up to one or two weeks after processing. This policy may have been put into place because there has been an increasing amount of bank draft and cashier’s check schemes and many customers have been defrauded out of a lot of money because of these phony drafts.

Bank drafts have similar features. They usually feature the name of the issuing bank in a prominent place. It is usually the upper left-hand corner or located on the upper center of the draft. It will also include other security features such as watermarks, a security thread, color-shifting ink and special bond paper. These are all characteristics that will make it more difficult to forgers to make counterfeit copies of these drafts.

The payee’s name, the numeric amount and its written equivalent, the remitter’s information and tracking information are all also printed on the front of the check.

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{ 1 comment… read it below or add one }

aftab ahmed September 30, 2010 at 7:41 am

appeal for the sake of humanbeing

we the people of pakistan suffering from severe flood .
four of the provinces are completely demolished particularly sindh ,
here we dont have proper food accomodation or clothes .
we are living in severe condition for the sake of human being please help us .
government is not responding properly ,they response those people whom they know very well so people are just dying of starvage ,
gastro and diferent diseases ,so at this time no one is going to take care of us so please helpus out in this difficicult time

we are 52 family members

account no> amjad ali a/c no.6469.1 mcb bank qasimabad hyderabad branch code [ 1407 ]

aftab ahmed gorar

taluka mehar district dadu

permanent address.Rampur muhala mehar


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