Demand draft, also known as DD, is one of the payment instruments issued by banks, payable in full on demand. The negotiable instrument is issued by the bank to the customer, asking a bank or one of its branches to pay the specified amount.
Considered as a secure mode of payment, the demand draft is known to be hard to forge or counterfeit as the customer (drawer) must pay the bank before the DD is issued. DDs are also known to be more reliable compared to a regular cheque as they are payable on demand without the possibility of being dishonoured due to insufficient funds.
A demand draft is an assured method of receiving funds as it eliminates the fraud or counterfeiting part of the payment, especially in a business transaction when the drawer and the payee are not known to each the other.
Table of Contents
What is Demand Draft Number?
The DD number is a 6-digit numeric code, or a serial number found at the bottom of the instrument and next to it is the Magnetic Ink Character Recognition (MICR) code. The DD number is just like a cheque number, a unique code is used to complete each transaction.
Why Do You Need to Know the DD Number?
The DD number is especially useful when the draft is stolen or lost. This can also be used to find out if the DD was encashed by the payee and helps in keeping records of your payments. It may be noted that banks have unique DD numbers to differentiate themselves from other banks.
Other Numbers Present in the Demand Draft
Along with the DD number, the DD also consists of the MICR code and the issuing bank’s branch IFSC code, which is used to transfer funds to another branch account of a bank.
How to Track the Status of Demand Drafts?
The validity of a demand draft is currently 3 months from the date of issue of the DD. If you want to track the status of the DD, visit your bank and find out if the DD was encashed or not.
Check about Demand Draft
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FAQs of Demand Draft Number
Where can I find the Demand Draft (DD) number?
Ans: The DD number can be found on the left side of the draft. It is a serial number which is similar to a cheque number. Every bank has a distinctive series of DD numbers.
Do I need to provide my account number on the demand draft?
Ans: Yes, you will need to provide your account number on the demand draft. Apart from the account number, you will need to enter the payment mode, beneficiary name, cheque number, signature, and place where the draft will be encashed.
Can a demand draft be made online?
Ans: Yes, it is possible to make a demand draft online. You can apply for a demand draft online and receive it at the bank.
What is the draft number on the demand draft?
Ans: A draft number is a 6-digit number that is present at the bottom of the demand draft and it is issued by the bank.
How long is a demand draft valid for?
Ans: A demand draft is valid for up to 3 months from the date it has been issued. It is similar to a banker’s cheque, which is also valid for 3 months.
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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