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Indian Bank offers the facility to make payments through demand draft, which is basically paper transactions accessed for many years. Indian Bank demand draft service can be operated at any of the bank branches by making payment either through cash or cheque. There is a certain charge which needs to be paid for issuing a demand draft at Indian Bank.
One does not need a savings account in Indian Bank to issue a demand draft. However, payments or transactions for more than Rs. 50,000 require the PAN card of the issuer but there are no further restrictions.
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Indian Bank DD Details
Below mentioned are the details that are required at the time of filling the demand draft:
- Your name and address
- Name of the drawee
- Name and address of the payee
- Name of the city where DD is payable
- Amount payable to the drawee (in words)
- Amount payable to the drawee (in figures)
- Exchange (fee charged by the bank)
- Total amount payable by the drawer to the bank (in figures)
- Signature of the drawer
Indian Bank Demand Draft Validity
The Indian Bank demand draft is ordinarily valid for a period of 3 months from the date of issue. The draft will expire if not presented within that period. However, an expired demand draft may be revalidated by the bank but only the drawer has the authority to do so.
A payee cannot revalidate a draft in any situation. In addition, a revalidated demand draft cannot be validated further. Indian Bank also charges a small fee for revalidating a demand draft.
How to Fill DD Form in Indian Bank
There are two ways of issuing a demand draft in Indian Bank just like other banks – One is to visit the bank and do it in person and the other is to use online banking services and fill out the form online. Most customers prefer the manual method of issuing a demand draft and collecting it. Despite taking an hour or so to process the request, it is still the fastest method followed by banks for issuing a demand draft. People having Indian Bank savings account and mobile banking activated can apply for DD online.
A demand draft form available at Indian Bank has different fields that you need to fill. The fields are date, name of the beneficiary, place where the draft is issued, branch name, branch code, payment method which may be NEFT, cheque, or cash, and the amount in both numeric and alphabetical notation. You need to fill all the details to complete the process. The bank will then ask you for payment along with the commission and start the process for issuing a draft.
Indian Bank Demand Draft Charges
Below mentioned are the charges charged by Indian Bank for issues pertaining to Demand Draft:
| Demand Draft Issue | Charges (excluding charges) |
| Up to Rs. 10,000 | Rs. 50 |
| Above Rs. 10,000 and up to Rs. 1,00,000 | Rs. 4 per Rs. 1000 (Min. Rs. 50 and Max. Rs. 300) |
| Above Rs. 1,00,000 | Rs. 5 per Rs. 1000 (Min. Rs. 500 and Max. Rs. 20,000) |
| Special Category – (Pensioners, Senior Citizens and Individuals in Rural Areas) | Up to Rs. 50,000 = Rs. 4
Above Rs. 50,000 and up to Rs. 1,00,000 = Rs. 2.50 per 1000 (Min. Rs 40 and Max. Rs. 250) Above Rs. 1,00,000 = Rs. 3 per 1000 (Min. Rs. 300 and Max. Rs. 12,000) |
| For Non-Customers | 50% more than normal charges |
| For Students | 50% of above charges for DD issuance/cancellation/revalidation |
| Demand Draft Cancellation for Non-Individuals and Individuals | DD value up to Rs. 100 = NIL
DD value above Rs. 100 and up to Rs. 10,000 = Rs. 50 DD value above Rs. 10,000 = 1% of DD value (Min. Rs. 100 and Max. Rs 500) |
| Demand Draft Cancellation for Special Category (Pensioners, Senior Citizens, and Individuals in Rural Areas) | DD value up to Rs. 100 = NIL
DD value above Rs. 100 up to Rs. 10,000 = Rs. 30 DD value above Rs. 10,000 = 1% of DD value (Min. Rs. 100 and Max. Rs. 500) |
| Demand Draft Revalidation/Duplicate Draft Issuance | Up to Rs. 100:
Rs. 25 for Individuals Rs. 30 for Non-Individuals Rs. 20 for Pensioners, Senior Citizens, and Individuals in Rural Areas Above Rs. 100 to Rs. 10,000 Rs. 50 for Individuals Rs. 100 for Non-Individuals Rs. 40 for Pensioners, Senior Citizens, and Individuals in Rural Areas Above Rs. 10,000 Rs. 100 for Individuals Rs. 200 for Non-Individuals Rs. 80 for Pensioners, Senior Citizens, and Individuals in Rural Areas |
| Encashment of Customer’s Demand Drafts | Commission of Rs. 0.25% (Min. Rs. 250 and Max. Rs. 10,000 plus interest as applicable and courier charges) |
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How to Prevent a Indian Bank Demand Draft Fraud
Despite being one of the safest traditional mediums of money transfer, demand draft fraud is virtually non-existent but it may happen. Misuse of digital information and easy availability of sophisticated printing equipment is another reason for such frauds.
A demand draft fraud is a scenario wherein someone issues a fake demand draft in the name of the payee. In such situations, it becomes harder to track down the person who issued the draft from the bank and the payee may have to face legal hassles. In the case of presenting a fake demand draft to the bank, the bank can file an FIR in the name of the payee and they must undergo legal procedures.
This might land an individual in serious trouble. Thus, it is important to follow rules to avoid and deal with such fraud. Follow these points to prevent from Indian Bank demand draft frauds:
- Keep Complete Information of the Drawer:Always extract proper contact information of the drawer and do not forget to verify these details be it their home or office addresses or bank account number. This is not fool-proof but it will help you narrow down your area of search and track down the fraudster if something happens. Keep proper details of your conversation or dealings with the drawer so that you do not have to face legal hassles.
- Keep a Copy of the Draft:Keep a photocopy of the draft and store it somewhere safe. This will help you identify the methods used in forging the draft. This is significantly helpful in situations where the demand draft is for a significant amount.
- Take Immediate Legal Action:Banks usually take immediate legal action against the payee when a fake draft is presented. This is because the banks are bound to rules and their actions are directed towards avoiding such mishaps. One should launch a counter-FIR and seek serious legal advice as the fight is on three fronts. One is to face the legal procedure, the second is to track down the fraudster and third is to try and recover your loss. In addition, contacting the drawer branch is also a good idea as they can provide you vital information about the drawer such as CCTV footage, contact information, etc.
Indian Bank DD FAQs
Q. What will happen if I do not encash my Indian Bank DD?
Ans. If you fail to encash your DD and it has expired, then the amount will not be credited automatically in the account. You will have to write an application for re-validation for demand draft by the drawee.
Q. Are signatures required for issuing an Indian Bank demand draft?
Ans. Unlike cheques, demand draft doesn’t require you to sign the draft before processing the payment since the payment is regulated by the bank.
Q. Can an Indian Bank demand draft be rejected?
Ans. An Indian Bank demand draft cannot be rejected since the payment has already been made to the Indian Bank. Hence, there are no chances a demand draft getting dishonoured.
Q. What is the difference between Indian Bank’s demand draft and cheque?
Ans. A cheque is payable both to bearer or order, whereas a DD is always payable concerning the order linked to a certain individual. A cheque is issued by the customers of a bank while the bank is responsible to issue a DD.
Q. What will happen if my Indian Bank demand draft is lost?
Ans. If you lose your demand draft then you will have to sign an Indemnity Bond on stamp paper for the issuing bank. If you have a copy of the demand draft, it will be helpful to present it to the bank. Hence, it is advisable to make copies of demand draft.