Compare · Fast reference
Bank Draft vs Cheque vs Promissory Note
See the structural difference first, then open the full lessons for exceptions and detailed procedure.
| Question | Bank Draft | Cheque | Promissory Note |
|---|---|---|---|
| Basic nature | Bank-issued payment instrument | Account holder orders bank to pay | Maker promises to pay |
| Who creates it | Bank | Drawer/customer | Maker/debtor |
| Funding logic | Normally funded/charged at issuance | Depends on account funds/credit when presented | Depends on maker’s payment obligation |
| Fraud risk | Counterfeit draft possible | Forgery/alteration/insufficient funds possible | False signatures/fake issuer/non-payment possible |
Remember thisA comparison simplifies the big picture. The actual undertaking, rules, wording, law and bank policy still control the real transaction.
How to use this comparison
The labels are a starting point, not a substitute for the actual wording. Before choosing a structure, ask what creates the payment obligation, who carries the credit risk, what rules apply, what event triggers payment and whether the receiving bank or financier accepts the structure.
1. Obligation
Who actually promises or is ordered to pay?
Who actually promises or is ordered to pay?
2. Trigger
What must happen before payment is due?
What must happen before payment is due?
3. Rules & documents
What wording or documentary conditions control the result?
What wording or documentary conditions control the result?
4. Bank acceptance
Will the relevant bank accept, advise, confirm, finance or process it?
Will the relevant bank accept, advise, confirm, finance or process it?