Demand Draft Charges

Demand Draft

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.

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*
  • Up to Rs.5,000 - Rs.25
  • Rs.5,000 to Rs.10,000 - Rs.50
  • Rs.10,000 to Rs.1 lakh - Rs.5 per Rs.1,000 (Min. Rs.60)
  • Above Rs.1 lakh - Rs.4 per Rs.1,000 (Min. Rs.600; Max. Rs.2,000)
HDFC (Through bank)
  • Up to Rs.50,000 - Rs.75 (Rs.50 via Phonebanking)
  • Rs.50,000 to Rs.1 lakh - Rs.2.50 per Rs.1,000 (Min. Rs.100)
  • Above Rs.1 lakh - Rs.2 per Rs.1,000 (Min. Rs.250; Max. Rs.5,000)
HDFC (Through netbanking)
  • Up to Rs.1 lakh - Rs.30
  • Third-party DD up to Rs.50,000 - Rs.100 (Limit per customer ID per day)
ICICI Bank
  • Up to Rs.25,000 per day - Nil
  • Above Rs.25,000 - Rs.3 per Rs.1,000 (Min.Rs.75; Max. Rs.15,000)
Axis Bank
  • At Axis Bank- 15 DDs free per day, after which Rs.50 per DD
  • At other locations - Rs.1 per Rs.1,000 (Min.Rs.25 per DD)
HSBC From HSBC Bank -
  • Up to Rs.1 lakh - Rs.100**
  • Rs.1 lakh and above - 0.1% of DD amount (Max. Rs.2,500)
  • Non-bank locations (correspondent banks) - 0.3% of DD amount (Min. Rs.100)
  • Non-bank locations (inter-branch transfers)- Free
Bank of Baroda
  • Up to Rs.5,000 - Rs.50
  • Rs.5,000 to Rs.1 lakh - Rs.3 per Rs.1,000 (Min. Rs.50; Max. Rs.300)
  • Above Rs.1 lakh - Rs.5 per Rs.1,000 (Min. Rs.500; Max. Rs.15,000)
Punjab National Bank Non-Individuals (General public) -
  • Up to Rs.10,000 - Rs.40
  • Above Rs.10,000 - Rs.4 per Rs.1,000 (Min. Rs.50; Max. Rs.12,000)

    Individuals (Urban, semi-urban, & metro branches) -

  • Up to Rs.10,000 - Rs.35
  • Above Rs.10,000 - Rs.3.50 per Rs.1,000 (Min. Rs.40; Max. Rs.12,000)

    Individuals (Rural branches, pensioners, & senior citizens***) -

  • Up to Rs.10,000 - Rs.30
  • Above Rs.10,000 - Rs.3 per Rs.1,000 (Min. Rs.30; Max. Rs.12,000)

    Students (Education/exam fees only****)-

  • Up to Rs.5,000 - Rs.20
  • Above Rs.5,000 - Normal charges applicable

*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

FAQs of Demand Draft Charges

  1. Can demand draft be made online?

    Ans: Yes, a demand draft can be made online.

  2. 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.

  3. 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.

  4. 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.

  5. 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.

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Display of any trademarks, tradenames, logos and other subject matters of intellectual property belong to their respective intellectual property owners. Display of such IP along with the related product information does not imply BankBazaar's partnership with the owner of the Intellectual Property or issuer/manufacturer of such products.

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