A demand draft is a popular and widely accepted payment instrument issued by banks on behalf of their customers as well as non-customers. It serves as a negotiable instrument guaranteeing payment to the beneficiary. Unlike payment through cheques, a demand ensures payment as it is backed by the bank. This makes it an ideal payment method for transactions involving huge amounts. Demand drafts offer reliability and convenience to both the payee and the payer.
Bank of India demand draft is a payment instrument issued by the bank on behalf of the applicant in favour of a specific recipient and for a specific amount. The Bank of India demand draft is a reliable and widely-accepted payment instrument. Individuals and businesses use this mode of payment for heavy transactions like paying school or college fees, vendor payments, real estate designs, etc. By issuing a demand draft, the Bank of India acts as an intermediary, ensuring the funds are available in advance, which eliminates the scope of bouncing. This makes it a preferred choice for businesses, individuals, and institutions in the same manner.
To purchase a DD from the Bank of India you will have to fill up a Bank of India DD Form with the details required to complete a transaction. The form has a designated field for every detail required. This is how to fill DD form of Bank of India by providing the details required in the relevant field.
- Name of the branch issuing the Bank of India Demand Draft
- Date of the transaction
- Payee’s name
- Amount of the DD in words
- Amount of the DD in figures
- Bank of India DD charges in figures
- DD payable at
- Total Amount in figures
- Name and address of the applicant
- Mobile number of the applicant
- Signature of the applicant
The procedure for the issuance of the Bank of India Demand Draft is:
- Visit any branch of the Bank of India
- Collect a Bank of India DD form
- Fill in the form with the required details like the date of the transaction, payee’s name and address, amount, Bank of India DD charges, Name of the applicant, address and mobile number of the applicant.
- Sign the Bank of India DD form
- Submit it at the designated counter.
- If you are paying cash for the DD, submit the form at the cash counter.
- If the amount has to be debited to your account, either submit the form with a Bank of India account cheque leaf or write the account number to which the DD amount and charges have to be debited.
- Upon verifying the accuracy of the details, the Bank will issue the demand draft.
Bank of India Demand Draft is a prepaid negotiable instrument. Like any other negotiable instrument, the demand draft has to be encashed within a given validity period.
The Bank of India demand draft is valid for 3 months. After the expiry date, the issuing bank branch will revalidate it for a further 3 months. The revalidation can be done only once a year. After a year the DD will be cancelled if not encashed and a fresh DD will be issued by collecting the scheduled charges.
The Bank of India collects scheduled service charges for issuing a demand draft. The Bank of India DD charges are given below:
For Bank of India demand draft through account
The Bank of India DD charges applicable when the applicant pays the DD amount through his/her savings account will be:
- Up to Rs. 5000/-: Rs. 25
- Above Rs. 5000/- to Rs. 10000/-: Rs. 50/-
- Above Rs. 10000/- to Rs. 1 lac: Rs. 5 per thousand. Minimum: Rs.60/-
- Above Rs. 1 lac: Rs. 4 per thousand. Minimum: Rs. 600/- Maximum: Rs. 15000/-
For Bank of India demand draft against cash
The Bank of India DD charges applicable when the applicant pays the DD amount in cash will be 50% over and above the applicable rates i.e.,
- Up to Rs. 5000/-: Rs. 38
- Above Rs. 5000/- to Rs. 10000/-: Rs. 75/-
- Above Rs. 10000/- and below Rs. 50000/-: Rs. 7.50 per thousand. Minimum: Rs.90/-
As per RBI guidelines, cash is accepted for DD issuance only up to Rs. 50000/- Above Rs. 50000/- the DD will be issued through a savings account with the bank only.
Charges for Revalidation or Cancellation of Demand Draft
- Up to Rs. 500/-: Rs. 20/-
- Above Rs. 500/-: Rs. 100
Issuance of Duplicate DD
- Up to Rs. 500/-: Rs. 50/-
- Above Rs. 500/-: Rs. 150/-
You can visit any of the Bank of India branches and collect the DD form from there. If you are a non-customer you can fill up the form and get a DD by paying the DD amount in cash provided the amount is less than Rs. 50000/- If the DD amount is over Rs. 50000/- you should either mention your Bank of India account number or submit the DD form along with a cheque to debit the amount from your account.
Bank of India Demand Draft FAQs
What are the benefits and features of the Bank of India demand draft?
● The payment of the DD cannot be stopped.
● The applicant need not have an account in the DD issuing bank
● The DD can be cancelled and the amount re-credited or refunded if not delivered
● Not payable to the bearer. It is paid to the specific beneficiary mentioned in the DD.
● Payee is guaranteed receipt of funds
● A secure and convenient payment method for huge transactions.