Also known as DD, a demand draft is a mode used to transfer funds from one bank account to another. With the introduction of cheques and online payments, DD is losing its popularity, however, it used to be one of the most popular payment modes a few decades ago. Unlike online payment transfers, DD is still the safest payment mode as it can only be paid to a drawee when they present the DD slip.
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What is a Demand Draft?
A demand draft is a negotiable instrument offered by a bank and is non-transferable. It is issued by a bank and is drawn by a “Drawer” who makes the payment. The drawer instructs the bank to make a payment to a specific person or an organisation called “Payee” (the one who receives the cash) when it is presented.
Unlike cheque payments, the bank cannot deny the payment due to insufficient funds when a DD is presented. This is because DD is a prepaid payment instrument and the Drawer would have paid for it already.
Demand Draft charges of some of the popular Banks in India
|Name of the Bank||Demand Draft Charges|
|State Bank of India*||
|HDFC (Through bank)||
|HDFC (Through netbanking)||
From HSBC Bank -
|Bank of Baroda||
|Punjab National Bank||
Non-Individuals (General public) -
*SBI DD charges are as on 01 April 2018.
**Applicable at bank branches in India. DD is free if you use HSBC internet banking. 25% of Rs.100 if you do it through HSBC phone banking.
***Location does not matter for senior citizens and pensioners.
**** Nil for students who have availed an education loan from PNB.
DD charges for some of the popular banks are mentioned here. If you are looking for a particular bank, visit the bank’s official website.
Check about Demand Draft
|Difference Between Demand Draft and Cheque||Demand Draft||Demand Draft Number|
|Demand Draft Cancellation||Demand Draft Clearance Time||Demand Draft Forms|
FAQs of Demand Draft Charges
Can demand draft be made online?
Ans: Yes, a demand draft can be made online.
Do all banks charge the same amount for making a demand draft?
Ans: No, the amount charged for making a demand draft varies from bank to bank.
If I cancel the demand draft, will I be charged?
Ans: Yes, you will be charged a minimum amount if you cancel the demand draft.
Will the person be paid once he/she submits the demand draft in the bank even though there are insufficient funds in the bank account?
Ans: Yes, he/she will be paid as the drawer would have already paid the amount when making the demand draft. It needs to be mentioned here that the demand draft is a prepaid payment instrument.
Does SBI charge the same amount for making a demand draft, irrespective of the money?
Ans: No, SBI doesn’t charge the same amount. The amount charged varies depending on the amount for which the demand draft is being made by the drawer.
Check IFSC Code for Top Banks:
|State Bank of India IFSC Code||HDFC Bank IFSC Code||Indian Bank IFSC Code|
|Axis bank IFSC Code||Canara bank IFSC Code||ICICI Bank IFSC Code|
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