IOB issues demand drafts, a prepaid secure financial instrument which is popular despite digital banking gaining prominence. Demand drafts are a popular mode for university payments, business transactions as well as personal remittances. IOB issues demand drafts to its customers as well as non-customers by collecting a nominal fee. IOB DD challan filling is mandatory as the bank needs some details of the payee as well as the payer and the transaction amount to issue a demand draft. Fill up an IOB DD form and submit it along with the DD amount and the charges specified and the bank will issue a DD in no time.
A demand draft also known as a banker’s cheque is a secure prepaid financial instrument issued by a bank on behalf of a payer. The payer can be a customer of the bank or a non-customer. It guarantees the payment to the beneficiary, making it a preferred mode of financial transaction for sizable amounts. Unlike regular cheques, the amount is debited to the payer’s account in advance, ensuring that the demand draft is fully funded and cannot bounce. It is a popular and trusted option for various financial transactions including cross-border payments, high-value purchases and settling bills. The payers can obtain a DD from their bank by providing the necessary details and paying the draft amount upfront, making it a reliable payment method.
The Indian Overseas Bank issues IOB DD after collecting the draft amount and the IOB DD charges. The bank collects charges for the issuance of a DD, cancellation of a DD, and issuing a duplicate DD. The different types of IOB DD charges collected are given below:
The DD commission in IOB for issuing a DD are:
- Up to Rs. 5000/-: Rs. 25
- Above Rs. 5000/- and up to Rs. 1000/-: Rs. 60
- Above Rs. 10000/- and up to Rs. 1.00 lac: Rs. 5/- per lac. Minimum: Rs. 80
- Above Rs. 1.00 lac: Rs. 5/- per 1000/-. Minimum: Rs. 500/-. Maximum: Rs. 15000/-
The DD commission in IOB for cancellation of a DD are:
- For DD up to Rs. 50/-: Nil
- For DD above Rs. 50/- and up to Rs. 100/-: Rs. 30/-
- For DD above Rs. 100 and up to Rs. 1000/-: Rs.80/-
- For DD above Rs. 1000/- : Rs. 100/-
The charges are per instrument.
The DD commission in IOB for the revalidation of a DD is Rs. 125/- The revalidation will be done only once.
The DD commission in IOB for issuing a duplicate DD is Rs. 150/-
The essential fields in a demand draft are:
- The name of the beneficiary (DD issued in favour of)
- Amount of the DD in both words and figures
- DD payable location
- Unique DD number
- Signature of the bank official issuing the demand draft
- An ‘Account Payee’ seal which indicates that cash cannot be paid. The amount should be paid to the beneficiary account only.
For the bank to issue a DD with the above fields you will have to fill up certain details in the IOB DD form. Let us see how to fill DD form in IOB. You will have to fill up some of the essential details/fields as mentioned below.
- Name of the branch where you are submitting the DD request
- Tick the option DD
- Amount in words
- Amount in figures
- IOB DD charges in figures
- The total amount in figures
- Beneficiary name and address
- Payable location
- Name and Address of the Applicant
- Mobile number of the Applicant
- Signature of the Applicant.
- Denominations if DD is against cash
- The acknowledgement part of the challan also has to be filled up with the same details. This will be required in the future if you have to revalidate or cancel a DD
Among the documents to be submitted for obtaining an IOB DD, an IOB DD form is the primary requirement. The DD form can be obtained from any bank branch or from the branch where you are applying for a DD. If you want to go equipped with the DD form fully completed, you can download the IOB DD form from various online websites. If the IOB DD challan filling is done beforehand, anyone on your behalf can submit the application at any of the bank branches. You will have to authorise the person to collect the DD on your behalf. His/her signature also has to be attested by you. The representative has to sign in the receiver’s column while collecting the demand draft.
Click Here to Download IOB Bank DD Form- https://www.iob.co.th/Files/TTDD_Application_form.pdf
Availing of a demand draft from IOB involves a straightforward process. Here is the procedure for obtaining a DD from IOB.
- Visit the nearest IOB Bank branches if you need to buy a demand draft for an amount above Rs. 50000/- Otherwise, you can visit any bank branch and apply for a DD against cash. You will have to make note that the DD commission for obtaining a DD by paying in cash will be 50% higher than the normal applicable charges.
- The Bank might ask for KYC documents, especially if you are availing DD against cash. Carry copies of the documents and the original for verification.
- Collect the DD form from the bank branch, and fill it out with the required details. IOB DD challan filling includes information like the name of the beneficiary, DD payable location, DD amount and IOB DD charges, payee’s name and address, applicant’s name, address, account number, and mobile number.
- Pay the transaction amount along with the IOB DD charges along with the completed and signed DD form. If you are having an account with the bank, the DD amount will be debited to your account with the bank. Otherwise, you will have to pay cash at the cash counter.
- The purpose of the demand draft also should be mentioned.
- Upon receiving the IOB DD form and the amount, the bank will verify the details and will either hand over the demand draft to you or will dispatch the DD to your registered address (if required).
- The payees can collect the amount into their account by presenting the DD at their bank.