Demand drafts are widely used for secure and convenient fund transfers, especially for transactions involving a high amount of money. To request a demand draft, customers need to fill up a demand draft form, which is available at the bank or can be downloaded from the bank’s website. In this article, we will discuss everything you need to know about demand draft forms.
What is a Demand Draft Form?
A demand draft form is a document used to request a demand draft from a bank. It contains the details of the person or organization to whom the demand draft is payable, the amount of the demand draft, the name of the issuing bank, and other necessary details. The form also specifies the commission charges, issuance charges, courier charges (if any), and taxes applicable for issuing a demand draft.
Types of Demand Draft Forms
There are two types of demand draft forms:
Physical Demand Draft Form
Physical Demand Draft Form: This is a paper form that customers can obtain from the bank’s branch by visiting in-person. Customers need to fill up the form manually with the required details and submit it along with the payment to the bank.
Online Demand Draft Form
With the advent of technology, banks have started providing the facility of online demand draft forms. Customers can download the form from the bank’s website, fill it up electronically, and submit it online. They can make the payment through internet banking or other online payment modes.
How to Fill up a Demand Draft Form?
Customers need to follow the below steps to fill up a demand draft form:
- Fill in the details of the person or organization to whom the demand draft is payable.
- Mention the amount of the demand draft in words and figures.
- Select the issuing bank where you hold an account or where you want to issue the demand draft.
- Mention the commission charges, issuance charges, courier charges (if any), and taxes applicable.
- Sign the form and submit it along with the payment to the bank.
Contents of Demand Draft Form
A demand draft is a type of payment instrument that is widely used for secure and convenient fund transfers, especially for transactions involving a high amount of money. It is a written order issued by a bank to pay a specified amount of money to the person or organization named in the demand draft.
Name of the Issuing Bank
The name of the bank that has issued the demand draft will be mentioned on the draft.
The name of the person or organization to whom the payment is being made will be mentioned on the draft. It is important to mention the correct payee name to ensure that the payment is received by the intended person or organization.
The amount of the payment in words and figures will be mentioned on the demand draft. It is important to verify the accuracy of the amount before issuing the demand draft.
The date on which the demand draft was issued will be mentioned on the draft. It is important to note that the demand draft is valid only for a limited period, typically 3-6 months, and must be cashed before the expiry date.
Demand Draft Number
The demand draft number is a unique identification number that is assigned to the draft. It is used to track the payment and to confirm that the payment has been made.
Signature of the Issuing Bank
The demand draft will bear the signature of the authorized signatory of the issuing bank. This signature confirms that the bank has issued the draft and is responsible for making the payment.
The commission charges, issuance charges, courier charges (if any), and taxes applicable for issuing the demand draft will be mentioned on the draft.
Demand Draft Forms: FAQs
A demand draft form is a printed form used to create a demand draft. It contains fields for the payer’s name, the payee’s name, the amount to be paid, and other necessary details required for the demand draft.
You can get a demand draft form at any bank that offers demand draft services. You may also be able to download the form from the bank’s website.
Yes, the demand draft form typically needs to be filled out by hand. However, some banks may offer online demand draft forms that can be filled out electronically.
To fill out a demand draft form, you will typically need to provide the payer’s name, the payee’s name, the amount to be paid, the purpose of the payment, and any other relevant details required by the bank.
It is generally not possible to cancel a demand draft once the form has been submitted to the bank. However, you may be able to request a stop payment on the demand draft if it has not yet been cashed.
Yes, there is typically a fee charged by the bank for issuing a demand draft. The fee may vary depending on the bank and the amount of the demand draft.
The validity of a demand draft form depends on the policies of the bank that issued the draft. Typically, a demand draft form is valid for a limited period, usually 3-6 months.
Yes, you can use a demand draft form to make international payments. However, you will need to provide additional information, such as the name and address of the beneficiary bank, the SWIFT code, and the currency in which the payment is to be made. The fees and processing time for international demand drafts may also be different from those for domestic drafts.