A Demand Draft, in short DD, is a negotiable instrument paid in advance to the bank by the payer. The bank then becomes the payer, on behalf of the person who requested a DD, for the payee. If the payer has a bank account with the bank he wants to get a DD from, he can pay using his bank account. Others can pay in cash for DD.
For amounts exceeding Rs. 50,000 or more, you will have to give your PAN details to the bank. Otherwise, for smaller amounts, you only need to present your ID and address proof to the bank. A DD is valid for 3 months from the date of issue.
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Demand Draft Charges
When a customer visits a bank to request a Demand Draft, he has to pay fees to the bank simply known as Demand Draft Charges. Each bank has its own way to calculate the charges and you need to check their website or speak to a representative to know the exact amount you will be charged for a DD.
Here is a table that shows the average charges levied by most banks in India to issue a Demand Draft:
Demand Draft Amount
|Demand Draft Charges|
|Up to Rs. 5,000|
Rs. 5,000 to Rs. 10,000
|Rs. 10,000 to Rs. 1 lakh|
Rs. 5 per thousand or part thereof. (Minimum Rs. 60)
Above Rs. 1 lakh
Rs. 4 per thousand or part thereof.
(Minimum Rs. 600 and maximum Rs. 2,000)
If the DD expires before it is encashed, you can get it revalidated. The banks charge Rs. 200 + GST for this service. You need to submit a form and furnish the original DD for revalidation.
If the DD is lost or stolen, you can get a duplicate DD issued at a charge of Rs. 200 + GST. You will need to submit a copy of the DD, your ID, and a form to avail this service.