Union Bank of India issues demand drafts which are prepaid instruments preferred for various financial transactions. Customers and non-customers of Union Bank can avail of this facility to send money to beneficiaries across the country. With its wide network and reliable services, Union Bank of India ensures prompt delivery of funds to the right person.
If the payee has an account in Union Bank of India, the funds get credited to the account immediately on presentation. For accounts in any other bank, the demand draft has to be sent for collection and it may take a minimum of 2 working days to get the credit. Since the scope of misuse of funds is very remote with demand drafts, Union Bank of India DD is considered a secure payment mode for high-value financial transactions. Besides, the Union Bank DD charges are nominal and cost-effective when compared to other modes of funds transfer.
What is a Demand Draft?
A demand draft is a prepaid instrument that guarantees payment to the beneficiary, unlike cheques that can be rejected for want of funds. Owing to this reason, the recipient in financial transactions involving substantial amounts and dealings with unknown entities prefers a demand draft. The beneficiary name and the amount are specified in the DD and there are very few chances of anybody else other than the beneficiary mentioned in the DD encashing the instrument.
Normally, DD is a widely chosen mode of funds transfer for business dealings, university/college fees, bills payment, etc. Demand drafts issued by banks like Union Bank of India, which have a wide network are generally preferred as the funds will be made available immediately on presentation.
Different Types of Union Bank DD charges
The Union Bank DD charges are very nominal. The bank has different charges for the issuance of a demand draft and cancellation/revalidation/issuance of a duplicate DD. Here is a detailed list of the various Union Bank of India DD charges.
Union Bank DD charges for the issuance of a demand draft
Up to Rs. 5000/-: Rs. 45/- + GST
Above Rs. 5000/- and up to Rs. 10000/-: Rs. 65/- + GST
Above Rs. 10000 and up to Rs. 1.00 lac: Rs. 4/- per Rs. 1000/-, Minimum Rs. 70/- + GST
Above Rs. 1.00 lac: Rs. 4.50 per Rs. 1000/- Min: Rs.70/- + GST, Max: Rs. 13350/- + GST
For DDs purchased against cash, normal Union Bank DD charges apply to individuals and for non-individuals, the charges will be 50% above the normal charges.
For DDs purchased towards educational purposes by students, the DD charges in Union Bank will be Rs. 25 + GST for DD up to Rs. 5000/-. For DDs above Rs. 5000/- the normal charges apply.
Union Bank DD charges for revalidation/cancellation/duplicate DD
The Union Bank of India charges for the revalidation, cancellation, and issuance of a duplicate DD are Rs. 130/- + GST per instrument.
Essential Demand Draft Fields/Details
After submission of a completed Union Bank DD form along with the amount either by way of cash or cheque, the bank issues a demand draft with the following essential fields:
- Date of the instrument
- DD in favour of the beneficiary mentioned in the DD form
- Amount in words and figures
- The place where the DD is payable
- Union Bank DD number
- MICR code of the branch
- Signature of the bank official/officials issuing the DD
- Account payee crossing
The DD should necessarily have the ‘Account Payee’ crossing which indicates that the DD has to be routed through the beneficiary’s account only.
Union Bank DD Form
The Union Bank DD form is the reference for the essential fields in the Union Bank DD. The required details are collected from the form and the demand draft issued. You can collect the Union Bank of India DD form from any branch of the bank. You can also download it from an online platform with the facility. The fields that have to be filled in the form are:
- Name of the issuing branch
- The date of the request
- Payee’s name
- DD payable location/place
- Amount in words and figures
- Union Bank DD charges
- Total amount
- Applicant’s name and address
- Applicant’s signature
You should fill in the same details on the receipt side of the Union Bank of India DD form which will be provided to you as acknowledgement. If you are purchasing the DD against cash you will have to fill in the denomination column as well.
Submit the Union Bank DD form along with a cheque (if the amount has to be debited to the account) at the designated counter. The bank official will check the details and will issue a demand draft with relevant fields.
How to Avail Union Bank DD?
You can avail of Union Bank DD either by visiting the nearest Union Bank branch or placing a request online through Internet banking and getting the DD delivered to your doorstep.
Procedure for purchasing Union Bank DD through a branch
- Visit the nearest Union Bank branch
- Collect the Union Bank DD form
- Fill in the relevant fields like the date of the instrument, name of the issuing branch, payee’s name, DD payable location, the amount in words and figures, name and address of the applicant
- Submit the form along with cash or a cheque and the counter. The bank will issue the DD in a few minutes after verifying the details mentioned in the form and collecting the amount.
Procedure for purchasing Union Bank DD online
You can place a request for the DD online through your Union Bank net banking account and the DD will be dispatched to your mailing address.
- Login to your net banking account with login credentials
- Navigate to the ‘General Services’ menu
- Under ‘General Services’ choose ‘Services’ and then ‘Service Requests’
- The ‘Service Request’ menu will have various options. Choose ‘New Request’ and then navigate to the ‘Request a cheque book/demand draft’ option.
- Choose the account for debit
- Here, you fill in all the required details, confirm the details provided, and click on the ‘Submit’ button.
- Key in the transaction password and click on the ‘Continue’ button.
- A DD reference number will be displayed on the screen.
- Note down the reference number if you are visiting the branch to collect the DD. The branch will issue the DD on producing the reference number.
- If you have opted for delivery to your mailing address, the bank will send it to your address.
