A Bank Draft is a negotiable instrument that is used to make payments. It acts like a check and can be used the same way. It is drawn on a bank, in the same way a check is drawn on a bank. The only difference is that it is guaranteed to be paid by the bank that issues it. It is backed by the bank's assets, and if it is not paid, the bank can be sued.A bank draft is used when a person wants to make a payment to someone who he or she does not know very well. It is also used when a person wants to be sure that the payment will be received by the other party.A person can become a customer of a bank and open an account. The bank will then issue a bank draft so that the person can use it to make payments. The bank will charge the person a fee for issuing the bank draft, and it will charge interest on the amount of money that is in the account. It may also charge the person for checking and other services, like online banking.When a person writes a check to make a payment, he or she must have enough money in the account to cover the amount of the check. If not, the person will have to transfer more money to the account before he or she can write another check.
