What is bankers cheque

A banker's cheque, also known as a pay order, is a non-negotiable financial instrument issued by a bank on behalf of a customer. Unlike regular cheques, it is prepaid, meaning the amount is debited from the customer's account before issuance, eliminating the risk of it bouncing. Key features include:

• It is used for making guaranteed payments to a person or entity within the same city.
• It carries a validity period of three months from the date of issue.
• The bank itself acts as the guarantor for the funds.