A demand draft is one of the most reliable payment modes. It is issued by banks after collecting the transaction amount from the customers in advance. The payment is guaranteed by the bank, and there is very little scope for dishonour of the instrument. Even in this digital era, demand drafts are preferred for high-value transactions by educational institutions, real estate, vendor payments, etc. Canara Bank issue demand drafts by collecting a nominal fee called as Canara Bank DD Charges. You can either visit a bank and get a DD by filling up the prescribed form and making payment in cash or through an account. Some banks provide the provision of placing a demand draft request online as well.
What is a Canara Bank Demand Draft?
Canara Bank Demand Draft is a prepaid negotiable instrument issued by Canara Bank to its customers as well as non-customers. The bank guarantees payment to the recipient on presenting the Canara Bank DD for collection. The applicant provides the details of the payee and the demand draft amount and the city where it should be payable.
Upon collecting the amount either by way of cash or through an account with the bank, the bank issues a demand draft across the counter. While dealing with unknown parties, demand draft is still a sought-after payment mode due to the payment guarantee and the security features. Encashing the demand draft before the validity period is recommended to avoid complications.
Different Types of Canara Bank DD Charges
Every DD transaction with the bank attracts a nominal fee. Canara Bank charges a fee for issuing a Canara Bank demand draft, revalidation of a DD, cancellation of a DD, and issuing a duplicate DD. The Canara Bank DD charges for the various demand draft transactions are given below.
For Issuing a Demand Draft to Individuals
Slab | Rural | Non-Rural |
Up to and inclusive of Rs. 1000/- | Rs. 25/- | Rs. 30 |
Above Rs. 1000/- and up to Rs. 10000/- | Rs. 35 | Rs. 40 |
Above Rs. 10000/- | Rs. 3.50 per Rs. 1000 and part thereof Minimum: Rs. 40/- Maximum Rs. 10000 | Rs. 3.50 per Rs. 1000 and part thereof Minimum: Rs. 40/- Maximum Rs. 12000 |
For Issuing a Demand Draft to Non-individuals
Slab | Rural | Non-Rural |
Up to and inclusive of Rs. 1000 | Rs. 25/- | Rs. 40 |
Above Rs. 1000/- and up to Rs. 10000/- | Rs. 35/- | Rs. 50 |
Above Rs. 10000/- | Rs. 3.50 per Rs. 1000 and part thereof Minimum: Rs. 40/- Maximum Rs. 10000 | Rs. 4 per Rs. 1000 and part thereof Minimum: Rs. 50/- Maximum Rs. 12000 |
For demand drafts against cash, the Canara Bank DD charges will be-
Up to and inclusive of Rs. 1000: No additional charges
Above Rs. 1000/-: Additional charges at 50% of applicable charges (if the DD charges are Rs. 40, then the commission for DD against cash will be Rs. 60/-)
The additional charges are at the discretion of the branches. The branches are permitted to collect additional charges up to 200% of the normal applicable charges.
For Revalidation and Cancellation of a Demand Draft
The Canara Bank Demand Draft is valid for three months. On expiry of 3 months, the demand draft has to be revalidated for encashment. The bank will revalidate the DD for a further 3 months upon receiving a request from the applicant. The Canara Bank DD charges for revalidation are:
Up to Rs.10.00 lakhs: Rs. 100/- per instrument
Above Rs. 10.00 lakhs: Rs. 1000/- per instrument.
For Issuing Duplicate DD
Up to Rs. 5.00 lakhs: Rs. 100/- per instrument
Above Rs. 5.00 lakhs: Rs. 1000/- per instrument
Essential Demand Draft Fields/Details
Before you leave the branch after collecting the demand draft check for the following essential fields.
- Name of the beneficiary
- DD amount
- Payable branch
- Issuing branch’
- Unique DD number
- Signature of the bank official issuing the demand draft. In some banks, signature of two bank officials will be required if the DD amount exceeds Rs. 1.00 lakh.
The bank will verify all the details upon tender of DD form Canara Bank along with the amount either in cash or cheque. If found correct, the bank will issue the demand draft.
Canara Bank DD Form
Canara Bank DD form can be collected from any of the Canara Bank branches. However, the DD form is available for download on various online platforms. You can download the Canara Bank DD form pdf from these platforms. Print the DD form, enter the required fields, and submit it to any nearest Canara Bank branch and the bank will issue the demand draft immediately after collecting the amount. By preparing the DD form before visiting the branch will save that much time.
For the Canara Bank Demand Draft with the essential fields, you will have to submit a DD form complete with the details required. Canara Bank DD form filling will require entering the following essential fields.
- Name of the issuing branch
- Date of the request
- Name of the Payee
- Address of the Payee
- DD payable at City (Name of the city)
- DD amount in words and figures
- DD charges Canara Bank in figures
- The total amount in the figures
- Account number of the applicant (for a debit of DD amount to the account)
- Mobile Number of the applicant
- Name and Address of the applicant
- Signature of the applicant
Click here to download the form:
https://canarabank.com/media/APPLICATION%20FORM.pdf
How to Avail of the Canara Bank DD?
Canara Bank issues a demand draft to both its customers as well as non-customers. For non-customers, the demand draft will be against cash, and so there is a cap on the DD amount. Non-customers can get a demand draft only below Rs. 50000/- as cash for a demand draft is permitted only up to Rs. 50000/- as per RBI guidelines.
The procedure for purchasing a Canara Bank DD is as follows:
- Visit the nearest Canara Bank branch. Collect the form from the branch. You can also download the Canara Bank DD form pdf from online platforms and go prepared.
- Fill up the essential fields like name of the branch, date of the transaction, recipient’s name and address, DD amount, Canara Bank DD charges, the total amount, the payable at city name, your mobile number, your name, and your address.
- Affix your signature on the form and submit it along with cash or cheque.
- If you have mentioned your account number, the bank will debit the amount to the account number.
- The bank official will verify the details in the form and issue the demand draft after collecting the amount.