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What is Demand Draft Form? Bank Charges for Creating a DD? Find Types of Demand Draft Details

The meaning of Demand Draft: Demand Draft (DD) is a negotiable instrument used for the transfer of money from one place to another and it cannot be transferred by a mere hand delivery. Demand Draft is issued by a bank. In this Two Parties Involved one is Drawer other one is Payee.

********Demand draft is valid for period of 3 months*********

A typical need for demand draft is seen in many situations. Just to illustrate consider a recent announcement for a job… “APPLICATION FEE (Non-Refundable): Rs.100/- (Rupees one hundred only) for each application. No fee is payable by SC/ST/PH candidates. Fee is payable by Demand Draft favoring Reserve Bank of India (RBI) and payable at……

Applications for jobs, examinations, admissions, services, high amount purchases, etc. require such demand drafts.

1 Types of Demand Draft
2 Contents of a DD
3 Bank Charges for Creating a DD
4 How to fill Demand Draft Offline
5 How to make Demand Draft Online

Types of Demand Draft

Sight Demand Draft: The type of DD in which the payment is made only after the presentment of the specific documents at sight.

Time Demand Draft: The type of DD in which the payment is made only after the specified period.

Contents of a DD

The branch of bank issuing the DD available at the top left
To Pay: Who gets the amount specified in the DD
Date of issue of DD (Validity period is 3 months)
The amount payable to the party in words
The amount payable to the party in figures
The branch of bank which pays the amount available at the bottom
DD number available at the bottom
Signatures of the officers of branch issuing DD

Bank Charges for Creating a DD

Demand Draft is usually used for payment of school/college fees or govt related contracts and schemes. Banks take charges for issuing DD and hence if the amount involved is high then it leads to additional cost to the person who wants to have demand draft.

DD charges vary from as low as Rs. 0 to as high as Rs. 4.50 for every Rs. 1000 of the DD value (restricting to DD’s more than Rs. 10,000). Also, the DD cancellation fees ranges from Rs. 0 to Rs. 1000.

Public Bank Demand Draft Charges in Rs

Bank Name	<1k		1-5k		5-10k
Bank Name	Min	Max	Min	Max	Min	Max
Allahabad Bank	25	25	35	35	40	40
Bank of Baroda	20	20	35	35	35	35
Andhra Bank	15	30	20	30	25	30
Bank of India	25	40	35	50	35	50
Bank of Maharashtra	25	25	30	30	35	35
Canara Bank	20	30	30	50	30	50
Central Bank of India	20	25	30	35	30	35
Corp. Bank	30	30	30	30	40	40
Dena Bank	30	40	30	40	30	40
Indian Bank	30	30	30	30	30	30
Indian Overseas Bank	9	11	14	17	18	22
Oriental Bank of Commerce	15	20	15	20	20	25
Punjab National Bank	30	40	30	40	30	40
Punjab & Sind Bank	25	25	25	25	25	25
State Bank of India	30	30	30	30	30	30
Syndicate Bank	15	30	35	40	35	40
UCO Bank	35	40	35	40	35	40
Union Bank of India	18.75	25	18.75	25	37.5	50
United Bank of India	17	22	28	39	34	51
Vijaya Bank	20	29	29	39	29	39

Private Bank Demand Draft Charges in Rs

Bank Name	<1k		1-5k		5-10k
Bank Name	Min	Max	Min	Max	Min	Max
Axis Bank Limited	50	50	50	50	50	50
Catholic Syrian Bank	10	15	20	20	30	30
Dhanlakshmi-B	10	15	20	20	25	25
Federal Bank Ltd	25	25	25	25	25	25
The South Indian Bank Ltd	25	25	25	25	25	25
The Bank of Rajasthan Ltd	35	35	35	35	35	35
Kotak Mahindra Bank	40	50	40	50	40	50
ING Vysya Bank Limited	50	100	50	100	50	100
ICICI Bank Ltd	50	50	50	50	50	50
HDFC Bank Ltd	50	50	50	50	50	50
Karnataka Bank Ltd	12	15	22	25	25	30

Foreign Bank Demand Draft Charges in Rs

Bank Name	<1k		1-5k		5-10k
Bank Name	Min	Max	Min	Max	Min	Max
Standard Chartered Bank	50	50	50	50	50	50
HSBC Ltd.	100	100	100	100	100	100
Abu Dhabi Commercial Bank	15	15	25	25	40	40
ABN-AMRO Bank N.V	50	50	50	50	50	50
34 Citibank N.A	20	20	20	20	20	20
DBS India bank	550	550	550	550	550	550

How to fill Demand Draft Offline

In order to issue in DD in any bank, you need to follow some procedure given below

Visit your Bank Branch in your city
Ask a DD Application form from the Customer Help Desk Counter
If you have a Bank Account in that particular bank you just need to fill up the DD Form and tick mark on account payee or else you can carry the money in cash which can be used to make a demand Draft.
You can collect your DD within 5 to 10 minutes.

How to make Demand Draft Online

First of all, you must have a bank account and enough balance in your account! Follow some procedure given below

Login to Online Bank by using Internet Banking Username & Password
Click on Payments/Transfers tab in top menu.
Click on issue DD option under other payments/receipt
Enter your profile password
Click on submit
Select the A/C Number which you want to use to make a DD and enter In Favor of, Purpose
Then enter branch code, branch name, delivery mode
Finally click on submit
Your process is done successfully