What is the difference between a bank draft and a demand draft?

What is the difference between a bank draft and a demand draft Introduction: The World of Drafts Hello everyone, and welcome to today's video. When it comes to financial transactions, drafts play a crucial role. They provide a secure and convenient way to make payments. In this video, we'll be focusing on two types of drafts: bank drafts and demand drafts. While they may seem similar, there are key distinctions that we'll explore. So, let's dive in! Definition and Purpose To start, let's define each type of draft. A bank draft, also known as a cashier's check, is a payment instrument issued by a bank. It guarantees the payment as the funds are already debited from the payer's account. On the other hand, a demand draft, often referred to as a banker's draft, is issued by a bank on behalf of a customer. It's a promise of payment, with the funds being collected from the payer's account when the draft is presented. Issuance and Accessibility