What does bank draft mean?

bank draft meaning in Law Dictionary

bill produced by a bank for bank or a related bank. It can be used whenever a standard check will not be acknowledged or when customers need drafts. AKA bankers draft.

bank draft meaning in Business Dictionary

Bill of exchange drawn by a bank on it self, or on a correspondent bank in another city or nation. Bank drafts are generally used by financial institutions in dealings with other banks, or whenever a creditor or vendor is hesitant to accept a regular check from a debtor or buyer in another town or nation. (In regional deals an avowed check or a cashier's check acts similar purpose.) When a customer (the cabinet) requests a draft, the bank withdraws the quantity of the draft from his / her account and holds it to honor the draft on its presentment because of the drawee. Because, in typical conditions, a draft is certain become paid, it is generally speaking accepted as a cash equivalent. Also known as banker's draft.

bank draft meaning in General Dictionary

a draft drawn by a bank against resources deposited in another bank