Demand Draft is a type of negotiable instrument which is used for payments. With the rapid increase in the advancement of technology, many people these days usually use money transfer options like NEFT, RTGS, or IMPS online transfer for making payments. Nowadays, many conventional instruments are losing their importance but demand draft is one such instrument that is still very much in practice and use. SBI demand draft is still used by many institutions like schools, colleges, the examination conducting centres, etc. for their application or admission procedure. SBI demand draft is one of the safest ways to carry out financial transactions.
SBI Demand Draft Details
- The name of the bank branch which has issued the demand draft.
- Individual’s name or the name of the organisation that is authorised to receive the payment.
- The date on which the demand draft has been issued.
- The amount payable must be denominated both in words, as well as figures.
- Name of the bank branch which pays the amount specified in demand draft.
- Serial number of the demand draft.
- Authorised signatures of the officers of the bank branch which has issued the demand draft.
SBI Demand Draft Validity
A demand draft issued by the bank is valid for a period of 3 months from the date of issue. If not presented, the draft will expire after that period. However, an expired demand draft can be revalidated by the bank.
Only the drawer has the authority to revalidate the draft. A payee cannot revalidate a draft in any situation. In addition, a revalidated demand draft cannot be validated further.
SBI also charges a small fee for revalidating a demand draft. The charges for demand draft revalidation are Rs. 200+GST.
How to Generate SBI Demand Draft
SBI demand draft can be issued in two ways. Let us discuss the ways in detail.
- Offline through branches
- Online through SBI’s official website
Procedure to Issue SBI Demand Draft at Branches
Fill in the application form in the below-mentioned format:
- 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.
Procedure to Issue SBI Demand Draft Online
Below-mentioned is the process to issue SBI demand draft online.
- Login to SBI’s website with your net banking credentials.
- After successful login, click on the “Payments/Transfers” tab.
- Click on the “Issue Demand Draft” option under “Other Payments/Receipt”.
- Select the account from which the amount has to be debited.
- Enter the amount of the demand draft.
- Enter the name of the beneficiary in the “In favour of” field.
- Enter the branch code where demand draft is payable at.
- Demand draft delivery mode. You can choose between a collection of DD from the branch getting or getting via post at your address.
SBI Demand Draft Charges
Below-mentioned are the charges applied by SBI on different issues regarding demand draft:
|Demand Draft Issue and Amount
|Up to Rs. 5,000
|Rs. 25 (including GST)
|Above Rs. 5,000 and up to Rs. 10,000
|Rs. 50 (including GST)
|Above Rs. 1,00,000
|Rs. 4 (including GST) per Rs. 1,000
Min. Rs. 600 (including GST)
Max. Rs. 2,000 (including GST)
|DD Cancellation or Issuance of Duplicate DD
|Rs. 200 + GST
|Demand Draft Cancellation Charges
|Up to Rs. 500 – NIL
Above Rs. 500 and up to Rs. 5,000 – Rs. 25 + GST
Above Rs. 5,000 and up to Rs. 10,000 – Rs. 50 + GST
Above Rs. 10,000 – Rs. 100 + GST
SBI DD cannot be cancelled online. At present, there isn’t any provision offered by SBI that permits the customer to manage the procedure through the bank’s official website. You will have to visit any of the bank branches personally and handle the cancellation process.
The moment you create the DD, the concerned amount would be deducted instantly from your respective bank account. You can cancel the issued DD and get the amount back. Make sure to carefully preserve the cash payment receipt as well as the original demand draft with you.
A customer can cancel a sanctioned DD for two cases, namely:
When cash has been paid for the demand draft
- In a condition when you have offered cash return for a DD, do not delay to visit your bank’s branch. You are required to submit the actual DD along with the cash payment receipt.
- Now, the DD would be accepted by the bank and money would be instantly offered. However, do remember that the whole amount wouldn’t be returned back. SBI DD cancellation charges will be applicable. This cancellation fees are also valid for other banks as well.
When money has been offered from account for a demand draft
In case you have offered money from your respective bank account, the procedure for DD cancellation totally changes. The customer is bound to fill a proper DD cancellation form.
- This form for cancellation can be received from the bank’s branch. You simply have to ask any of the officials at the bank for the DD cancellation form. Make sure to fill all the necessary information required in the concerned form.
- After you have finished filling the form, submit it together with the original demand draft at the bank. Finally, the amount will be refunded back to your bank account. Make a note that, a certain amount would surely be deducted as cancellation fees.
Remember if you have misplaced your DD then it would be difficult to get the amount back. It is recommended to have a word with the bank officials if such a thing happens.
How to Prevent SBI Demand Draft Fraud
Below mentioned are the steps to take to prevent SBI demand draft fraud.
- Keep proper information of the drawer
- Always keep a copy of the draft
- Take legal action immediately if you find something is fishy
Difference Between SBI Demand Draft and Cheque
- A cheque is payable either to the order or bearer, whereas demand draft is always payable to the order of a certain person.
- Cheques can be dishonoured due to insufficient balance in the account, whereas the same is not possible in case of a demand draft due to advance payment of the amount.
- Cheques can be issued only by the account holder whereas the bank itself issues the demand draft.
- Cheque book facility can be availed only by the account holders of the bank, but demand draft facility is available to everyone including the non-account holders, i.e. it has been issued for any individual / non-individual even if it doesn’t have a bank account.
- Usually, no charges are charged for issuing for cheque books but charges are levied on the issuance of demand drafts.
SBI Demand Draft FAQs
Q. What are the cancellation charges of demand draft in SBI?
Ans. SBI Bank charges Rs. 200 + GST for cancelling a demand draft.
Q. Can I get my demand draft refunded in SBI Bank?
Ans. Yes, you can get your demand draft refunded in the stipulated time. However, the bank might deduct some cancellation charges on DD.
Q. Can a demand draft be cancelled after three months?
Ans. A demand draft is valid for three months from the date of issuance. If you wish to cancel the demand draft after three months, then it cannot be cancelled. You will have to write an application to the bank to revalidate your draft after three months.
Q. Can I cancel my lost demand draft?
Ans. If the draft has been lost, you will have to return to the bank to get the cancelled by presenting a copy of the draft or the reference number of the draft. Hence, it is advisable to get copies of your demand draft.
Q. How can I convert my DD to cash in SBI Bank?
Ans. The person who receives the DD can get it encashed. You will have to present your DD to your bank upon receiving it. Once the bank verifies the documents the payment procedure is initiated and the amount will be eligible to be encashed.