What does banker's draft mean?
Definitions for banker's draft
banker's draft
This dictionary definitions page includes all the possible meanings, example usage and translations of the word banker's draft.
Princeton's WordNet
bank draft, banker's draftnoun
a draft drawn by a bank against funds deposited in another bank
ChatGPT
banker's draft
A banker's draft is a type of check where the payment is guaranteed by the issuing bank. It is a secure payment method often used for large transactions, where the bank has already taken the money from the payer's account to ensure sufficient funds exist. It is sometimes also referred to as a bank check or cashier's check.
Wikidata
Banker's draft
A banker's draft is a cheque where the funds are taken directly from the financial institution rather than the individual drawer's account. A normal cheque represents an instruction to transfer a sum of money from the drawer's account to the payee's account. When the payee deposits the cheque into their account, the cheque is verified as genuine and the transfer is performed. Any individual or company operating a current account has authority to draw cheques against the funds stored in that account. However, it is impossible to predict when the cheque will be deposited after it is drawn. Because the funds represented by a cheque are not transferred until the cheque is deposited and cleared, it is possible the drawer's account may not have sufficient funds to honour the cheque when the transfer finally occurs. This dishonoured or 'bounced' cheque is now worthless and the payee receives no money, which is why cheques are less secure than cash. By contrast, when an individual requests a banker's draft they must immediately transfer the amount of the draft from their own account to the bank's account. Because the funds of a banker's draft have already been transferred they are proven to be available; unless the draft is a forgery or stolen, or the bank issuing the draft goes out of business before the draft is deposited and cleared, the draft will be honoured. Like other types of cheques, a draft must still be cleared and so it will take several days for the funds to become available in the payee's account.
Matched Categories
Numerology
Chaldean Numerology
The numerical value of banker's draft in Chaldean Numerology is: 3
Pythagorean Numerology
The numerical value of banker's draft in Pythagorean Numerology is: 2
Translations for banker's draft
From our Multilingual Translation Dictionary
- baka Turkish
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"banker's draft." Definitions.net. STANDS4 LLC, 2024. Web. 28 Apr. 2024. <https://www.definitions.net/definition/banker%27s+draft>.
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