When a bank creates a demand draft, the requested amount is deducted from the customer’s account and transferred to an account at another bank. The individual making the demand draft is the drawer; the bank making the payment is the drawee; and the party receiving the funds is the payee. Demand drafts were first intended to help reputable agents who required a way to take money out of customers’ checking accounts using their bank account and routing data.
What are the DD Charges in SBI?
Banks usually levy a nominal fee or charge to issue a demand draft. It varies from bank to bank and is not a uniform denomination. SBI also offers DD services. If you want to avail the DD Services of SBI, the charges are as following:
Up to Rs. 5000 – Rs. 25
Above Rs 5000 up to Rs 10000 – Rs. 50
Above Rs. 10000 up to Rs. 100000 – Rs. 5 per 1000 (Min. Rs. 60)
Above Rs. 100000 – Rs. 4 per Rs. 1000 (Min. Rs. 600, Max. Rs. 2000)
These are the charges that you have pay for issuing a Demand Draft in State Bank of India.
What are the DD Cancellation Charges in SBI?
DD can also be cancelled by writing a DD cancellation letter to the Branch Manager of the Bank. A nominal charge is incurred on the person for cancelling the DD. The DD Cancellation Charges for SBI Bank are as follows:
Up to Rs. 500 – Nil
Above Rs. 500 up to Rs. 5000 – Rs. 25 + GST
Above Rs. 5000 up to Rs. 10000 – Rs. 50 + GST
Above Rs. 10000 – Rs. 100 + GST
These are the charges that you have to incur if you cancel a DD from SBI.
You cannot cancel an SBI DD online. SBI does not yet offer any functionality that would allow customers to control the process through the bank’s website. You must personally manage the cancelling process by visiting one of the bank locations. The relevant sum will be immediately taken out of your corresponding bank account as soon as you generate the DD. You can return the money by cancelling the issued DD. Keep both the original demand document and the receipt for the cash payment in a safe place.
How to fill SBI DD Form
Fill in the SBI Demand Draft Form in the manner prescribed hereafter:
- The beneficiary’s name on whom the DD is to be issued
- The city/branch on which the DD is to be issued
- The amount of the DD
- The service charge of the bank (as per the service charges for the respective amounts)
- The person requesting the DD
- Signature of the depositor (note that the depositor can be different from the applicant)
Deposit the application form at the drafts issue counter along with cash/cheque. The demand draft is delivered to the concerned individual after verification of the above details.
How to issue SBI DD Online?
The steps to issue an online SBI demand draft are listed below.
- Connect to the website using your SBI net banking login information.
- Once you’ve logged in successfully, select the “Payments/Transfers” page.
- Select “Issue Demand Draft” from the list of “Other Payments/Receipt” options.
- Decide which account should be used to debit the required amount.
- Enter the demand draft’s amount.
- In the “In favour of” area, type the beneficiary’s name.
- the branch code for the location where the demand draft is payable.
- Make a draft delivery request. You have the option of picking up your DD in person at the branch or having it mailed to your address.
SBI DD Validity
A demand draft that is issued by a bank is good for three months after the date of issuance. The draft will expire after that time if it is not submitted. However, the bank may revalidate a demand draft that has expired. The only person with the power to revalidate the draft is the drawer. In no event may a payee revalidate a draft. A revalidated demand draft cannot also be validated again. For revalidating a demand draft, SBI additionally levies a minor cost. Demand for revalidation costs Rs. 200 plus GST.
SBI DD : FAQs
A demand for cancellation fee of Rs. 200 plus GST is levied by SBI Bank.
Yes, you can request a refund of your demand amount within the allotted period. The bank may, however, take certain cancellation fees from the DD.
A demand draft is effective for three months after it is issued. After three months, the demand draft cannot be cancelled if you desire to do so. After three months, you must submit an application to the bank in order to have your draft revalidated.
A SBI DD can be issued offline at branch location or through online SBI DD Feature.
The DD stands for Demand Draft.