A demand draft is a non-transferable negotiable instrument provided by a bank. It is obtained by a “Drawer” who makes the payment, and it is issued by a bank. When cash is provided, the drawer informs the bank to pay a specific individual or group known as the “Payee” (the recipient of the money). A demand draft, sometimes referred to as a DD, is a method for moving money from one bank account to another. DD used to be one of the most often used payment methods, but with the advent of checks and online payments, it is currently losing favour. DD is still the safest payment method since it can only be paid to a drawee when they submit the DD slip, unlike internet money transfers.
What is a Demand Draft?
When a Demand Draft is submitted, unlike cheque payments, the bank cannot reject the payment on the grounds of inadequate funds. Because DD is a prepaid payment method and the Drawer would have already paid for it.
Demand Draft Charges of Popular Banks
| NAME OF BANK | DEMAND DRAFT CHARGES |
| State Bank of India | Upto Rs 5000 – Rs 25 Rs 5,000 to Rs 10,000 – Rs 50 Above 1,00,000 – Rs. 4 per Rs. 1000 Min. Rs. 600 Max Rs. 2000 |
| Punjab National Bank | Upto Rs. 10000 – Rs 50 Above Rs. 10000 – Rs 4 per Rs 1000 (Max Rs. 15000) |
| HDFC Bank | Upto Rs 10,000 – Rs 45 Above Rs 10,000 – Rs 5 per 1000 (Min. Rs 50 and Max. Rs 10,000) |
| ICICI Bank | Upto Rs. 10,000 – Rs 50 Above Rs. 10,000 – Rs 5 per 1000 (Min. Rs 75 and 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) |
| Kotak Bank | Payable at Branch Locations Rs. 1 per Rs. 1000 (Min Rs. 50 Max Rs. 5000) NIL Charges up to 15 DD p.m.; thereafter Std Charges Payable at Non-Branch Locations- Rs. 2 per Rs. 1000 (Min Rs. 50 Max Rs. 5000) |
| 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) |
| HSBC | 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 |
Demand Draft Charges – FAQs
Yes, you may make a demand draft online.
No, different banks have different fees associated with requesting a demand draft.
Yes, if you cancel the demand draft, you will be charged a minimum sum.
Yes, because the drawer would have already paid the sum while writing the demand draft, they will be compensated. The demand draft is a prepaid payment method, and this needs to be stated.
