Examples of Bank Draft Shiny was about to purchase a sports car for herself. After a lot of market research, she decides to buy a honda civic latest brand, which was available. She then approached a dealer to know the prices and other formalities. The dealers asked for the draft of the said amount of the car. Demand drafts are issued by the banks regardless of the bank accounts of the drawer. A DD can be issued either against money paid by a cheque or in cash.
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Summary What is a bank draft? How do I get a bank draft? What are bank drafts for? How do you deposit a bank draft? What are the things to consider before buying a bank draft? What do I do if I lose a bank draft? How do I cancel a bank draft?
When you receive a bank draft, it can be deposited at any bank because it is treated as cash, unlike when you deposit a personal check.
If a bank draft is lost or stolen, reporting it immediately to your financial institution is critical to having the bank put a stop on the draft.
There are certain reasons why a bank will most likely agree to cancel a draft and It is difficult to cancel or stop payment on a bank draft outside of these conditions because, in effect, a bank draft represents a transaction that has already occurred. Since the buyer has already paid the funds to obtain the bank draft, the only means of effectively canceling the draft is to have the seller cash it and return the funds to the buyer.
However, if the draft has been lost, stolen or destroyed, the buyer may be able to cancel the draft by returning to his bank, explaining that the draft is irretrievable by either himself or the seller, and presenting to the bank the reference number or a printed copy of the draft. As long as the bank can verify that the draft has not been cashed, it can cancel it and issue a new, replacement draft. It is a good idea to verify cancellation and replacement policies with the issuing bank.
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