A demand draft, commonly known as DD, is a widely accepted secure payment mode. Banks issue a demand draft on behalf of its customers as well as non-customers by collecting money in advance. The payment to the beneficiary is guaranteed by the issuing bank upon presentation for collection. It is the best mode of funds transfer when personal cheques or electronic transfers are not feasible. IDBI Bank issues DDs when a request in the prescribed IDBI Bank DD form is submitted along with a cheque or cash and the scheduled IDBI Bank DD charges.
The bank issues DDs against cash only up to Rs. 50000/- Anything beyond and inclusive of Rs. 50000/- should be only by way of debit from IDBI Bank account.
If you need to purchase a demand draft from IDBI Bank you will have to collect the form from the IDBI branch. Alternatively, you can download the IDBI Bank demand draft form from any online platform that provides it.
IDBI Bank DD form download makes it convenient as you can fill up the required details before visiting the branch. You will have to only present the form along with cash or a cheque across the demand draft counter and the DD will be issued. For individuals with a busy schedule, this arrangement is convenient as he/she need not visit the branch in person. With all the details filled in and the signature affixed, anybody can visit the branch and purchase the DD on their behalf.
Click here to download IDBI DD Form-
Details to Fill in IDBI Bank Demand Draft Form
The IDBI Bank will issue a Demand Draft by filling in the following details
- Date of the instrument
- Name of the beneficiary
- Amount in words and figures
- DD payable place
- DD number
- MICR code of the branch
- Signature of the bank official authorised to issue a demand draft
- Account Payee crossing
For IDBI Bank to issue a demand draft with the essential details, you will have to submit the IDBI Bank demand draft form filling in the details mentioned below:
IDBI Bank has a combined form for the purchase of DD and funds transfer through NEFT/RTGS. To purchase a demand draft from the bank this is how you fill-up the form
- To begin with, tick the DD option on the form
- Name of the branch from where you are purchasing the demand draft
- Date of the transaction
- Tick the box meant for ‘Please issue DD’
- Payable at (mention the place on which the DD has to be issued)
- Beneficiary name and address
- Amount in figures
- IDBI Bank DD Charges in figures
- The total amount in figures as well as words
- Denominations if DD is against cash
- If you are paying through cheque, mention the cheque number
- If you prefer a debit from your account, then mention your account number with authorization for the bank to debit the amount from your account.
- Agree to the terms and conditions
- Your Name (In the applicant’s name column)
- Your address (In the applicant’s address column)
- Your mobile number (In the applicant’s phone number column)
- Affix your signature
After completing the IDBI Bank DD form, submit it along with cash or cheque at the counter and the bank will issue a demand draft after checking all the details for accuracy.
Documents Required to Issue IDBI Bank DD Form
The documents required to issue IDBI Bank DD are:
- IDBI Bank demand draft form
- A cheque
IDBI Bank issues the demand draft irrespective of whether the purchaser has an account with the Bank or not. Submitting a duly filled and signed IDBI Bank demand draft form along with a cheque or cash (if the DD amount is less than Rs. 50000) is sufficient for the bank to issue a demand draft. Normally, the bank will not demand copies of KYC documents to issue a demand draft.
Features of IDBI Bank DD
The features of IDBI Bank DD are:
- It is a prepaid negotiable instrument.
- It is a secure mode of payment as the issuing bank guarantees the payment to the recipient on presentation.
- Stop payment instructions are not accepted for demand drafts for any reason.
- There is no risk of non-payment due to insufficient funds.
- The DD may be dishonoured only if there is any discrepancy in the DD details
- Normally, DDs are preferred for huge transactions like payment of university fees, real estate dealings, and high-value purchases.
- When you are dealing with an unknown entity, DD is the most secure and preferred mode of funds transfer.
Benefits of IDBI Bank DD
The IDBI Bank offers a host of benefits, as mentioned below:
- DDs issued by banks are prepaid as the bank collects the demand draft amount in advance. This eliminates the risk of rejection of the instrument for want of funds and provides confidence for both the payer and the payee.
- The payee is certain to get the amount on presentation for encashment. The bank guarantees the payment of funds to the specific beneficiary on presenting the instrument for collection. This certainty is particularly important in high-value transactions or when dealing with unfamiliar parties.
- Demand drafts are widely preferred by various institutions, businesses, and individuals as it is a reliable mode of payment. Transactions through demand drafts are largely preferred due to the guarantee of receiving the funds.
- This mode of payment is especially beneficial in places where electronic transfer are not feasible. This feature is relevant to remote locations and rural areas.
- The payee and payer can be sure of a clear and tangible paper trail of the transaction which they can provide as proof of payment for future reference.
- Demand drafts offer a level of privacy to the payer as their personal account details are not disclosed to the recipient. This confidentiality can be beneficial in certain transactions where the payer may prefer to keep their financial information confidential.
IDBI Bank DD Form FAQs
Can IDBI Bank demand draft be cashed without a bank account?
Does IDBI Bank issue a demand draft for a purchaser without a bank account?
What are the IDBI Bank DD Charges for issuing a demand draft?
· Up to Rs. 5000/-: Rs. 30/-
· Beyond Rs. 5000/- and up to Rs. 10000/-: Rs. 50
· Beyond Rs. 1000/-: Rs. 3/- per thousand. Minimum: Rs. 50 Maximum: Rs. 10000/-