Full formBanking & Finance
BDstands forBank Draft
Full Form of BD
What is BD?
A Bank Draft (BD) is a payment instrument issued by a bank on behalf of a customer, guaranteeing the payment of a specified amount to a designated payee. In India, Bank Drafts are widely used for secure transactions, especially in situations where cheques may not be accepted due to trust issues or where electronic payments are not feasible. They are commonly employed for paying university admission fees, property deals, and government tender fees. The draft is drawn on a specific branch of the issuing bank and is considered a safer mode of payment than a personal cheque because the amount is debited from the customer's account immediately upon issuance. Bank Drafts are regulated by the Reserve Bank of India (RBI) and are governed by the Negotiable Instruments Act, 1881. They are preferred in rural and semi-urban areas where digital payment infrastructure is limited. For competitive exams like those conducted by the RBI, SBI, and IBPS, understanding the nuances of Bank Drafts, including their validity period (typically three months), cancellation procedures, and the difference from Demand Drafts, is essential for scoring well in the banking awareness section. Despite the rise of online transfers, Bank Drafts remain relevant for legal documentation and large-value transactions.
BD का फुल फॉर्म
बैंक ड्राफ्ट
Example
I submitted a BD of ₹50,000 from State Bank of India to secure my son's hostel admission in Delhi.
BD — frequently asked questions
What is the full form of BD?
The full form of BD is Bank Draft.
What is the difference between BD and DD?
Both are similar, but Bank Draft (BD) is issued by a bank for a specific amount payable at a specific branch, while Demand Draft (DD) can be cashed at any branch of the issuing bank. In practice, the terms are often used interchangeably in India.
Is BD still used in India?
Yes, Bank Drafts are still used for large transactions such as paying tuition fees, property transfers, and in government payments, especially where digital payments are not accepted.