Bank Draft Charges in Nigeria – many payment instrument exist but there is one which many people know by its name but not by its function and potency.

It is called Bank Draft hence the reason we are bringing to you the topic – Bank Draft Charges in Nigeria, a guide to knowing how to get a draft

For us to be able to serve you the juice you deserve in this topic; please get home the sub topic of the day:

  1. What is Bank Draft?
  2. How long does it take a bank draft to clear in Nigeria?
  3. How do I get a bank draft in Nigeria?
  4. How much does a bank draft cost in Nigeria?
  5. Conclusion
Bank Draft Charges in Nigeria

What is Bank Draft?

A bank draft which is also known as Manager’schequeis a cheque or an instrument paid by a Bank on a money within its custody and safety as requested and deposited by their customer.

This is what makes Bank draft a very safe instrument and answers the question is a bank draft safe?

Please note this, Ordinary cheque are drawn by customer on their own accounts but this is drawn by bank on their draft account GL.

Drafts are signed by the bank official while cheques are signed by account owner(s). Drafts are mostly paid through clearing but ordinary cheques are paid via clearing, via transfers and across the counter as a withdrawal instrument.

This is where Bank draft differs from Ordinary chequewhich answers the question what is the difference between a Cheque and a bank draft?

Despite this difference, draft and Ordinary cheques holds certain similarities.

  1. Both of them are MICR security instrument,
  2. Both of them are clearing instrument and
  3. Both of them are payment instrument for both account holders and third parties.

We hope this serves you right?

How long does it take a bank draft to clear in Nigeria?

As stated earlier, Bank Drafts are paid mostly through clearing and according to the newly advised mechanized clearing process.

The time line for clearing a draft is T + 2 where “T” means transaction date and “2” means extra two dates.

Literally this means a transaction date “T”plus extra two days “2”.                                                                                                                                                                                

How do I get a bank draft in Nigeria?

This is a very simple thing to do. It can be done either as a customer or as non-customer.

To get a draft as a customer just do the following:

  1. Visit your bank or any bank as a non-customer
  2. Make your request by filling draft form or by writing a letter as indicated by the bank’s policy and boldly write the name of the bank draft beneficiary.
  3. Ensure your account is funded and that you signed the correct signature.
  4. Submit same to the Transaction officer whose will raise the draft and issues same to you after it has been endorsed by the branch authorized signatory.

To get a draft as a noncustomer just do the following:

  1. Visit any bank as a non-customer
  2. Make your request by filling draft form or by writing a letter as indicated by the bank’s policy and boldly write the name of the bank draft beneficiary.
  3. Pay in cash into the Draft suspense account of the bank.
  4. Submit draft form and proof of payment to the Transaction officer whose will raise the draft and issues same to you after it has been endorsed by the branch authorized signatory.

This takes us to what banks call turnaround time (TAT). This is the time taken to start and complete a transaction as stipulated by the policy of CBN in particular and banks in general.

According to this TAT guide line, the maximum time it should take to deliver a bank draft is 5 minutes.

How much does a bank draft cost in Nigeria?

This is one of the cheap services rendered by Nigeria Banks.

The cost of raising a bank draft in Nigeria as approved by Central bank of Nigeria (CBN) is N215.00

This is debited straight from the customer’s account during the processing of the bank draft.

This is the concept of Bank Draft Charges in Nigeria.

Bank Draft Charges in Nigeria
Bank Draft Processing

Conclusion

It will a taboo for us not to mention this important part of Bank draft. A bank draft is as good as cash.

Except on written instruction for a repurchase by the customer that raised the draft, a bank draft can never fail upon presentation for payment whether through clearing or across the counter.

With this, we believe that we have enlightened you appropriately. You can also read: Central bank of Nigeria

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