Legal Definitions - bankable paper

Bankable paper refers to any written or printed document that can be used as a negotiable instrument to evidence a debt. This includes commercial documents like notes, checks, bank bills, and drafts that are considered as a group. These documents are received as cash by banks and are known as bankable paper.

For example, when a company issues a check to another company, the check becomes a bankable paper that can be deposited into the recipient's bank account. Similarly, when a person writes a promissory note to borrow money from a bank, the note becomes a bankable paper that can be traded or sold to another party.

Bankable paper is important in the financial industry because it allows for the transfer of funds without the need for physical cash. Banks and other financial institutions rely on bankable paper to facilitate transactions and manage their cash flow.