How to make a demand draft (DD)?

There are many negotiable instruments to receive or transfer money such as cheque, bill of exchanges, demand drafts, etc. Although now, India is moving towards digital India with various digital payment platforms to transfer money instantly but still as the safest mode, there are some government agencies, schools or institutes that ask you to submit the Demand Draft for the payment of fees.

Here is this article; we are going to discuss “How to make demand draft”?

Before proceeding, you must know what is a Demand Draft?

The demand draft is basically a facility for transferring money through the bank. DD is issued by the Drawee bank to the drawer (Bank’s client) directing bank of the same branch or other to pay the amount mentioned in the demand draft to the person who presents it to the counter. 

Few important points to be considered:

  • A demand draft is valid for a period of 3 months. If it is not used in 3 months, then D will become invalid and the money will be refunded automatically in your bank account. 
  • It is not mandatory that you should have a bank account in which you are paying the demand draft. 
  • The demand draft can be made by paying cash or cheque in the bank but if the amount of demand draft amount exceeds Rs. 50,000, the payment is allowed to be made through cheque only.
  • PAN Card is necessary for making the Demand draft of more than Rs. 50,000
  • Make sure you have enough amounts in your bank account for making payment through Demand draft.

Here is the image of the sample demand draft: 

How to make a demand draft (DD)?

Process for making the demand draft: 

You can make the Demand draft by visiting the bank and it takes around 30 minutes to 1 hour to make demand draft. The internet era has allowed making Demand draft online also. However, it takes a few days to deliver at your correspondence address.  

Things should be known before preparing the DD:

  • Sender’s complete name, address and contact details
  • Person to whom the payment is to be made
  • Total amount 
  • The “payable” location

Steps to make demand draft at Bank

1. Ask for the DD Form: Visit any bank and ask for the Demand draft form to be filled.

2. Fill Details: As the details mentioned in the sample of DD, you need to fill the details such as name whose favor you want to make the payment, amount, the place where DD will be encashed, cheque number, bank account number, and Signature.

3. Demand Draft charges: The banks collect the charges for making demand draft. Such charges vary from bank to bank 

4. Collect your demand draft from the bank: Bank will provide you demand draft once you submit the form and charges of demand draft.

Steps to make demand draft at Online

To make the demand draft online, you must have the internet banking of the bank by which you want to make payment:

1. Log in to internet banking: Firstly, you need to login to your internet banking

2. Payment Page: You will see the option of demand draft option under the payment option 

3. Enter details: Once you click on the demand draft option, Fill the following details such as

Select the bank account from which you want to debit your account for payment

Enter the amount of the demand draft

Enter the name of an institution ‘In favor of’, to which you want to make payment

Now, choose the purpose of payment from the dropdown menu

Enter the branch code of the bank at which the demand draft is payable. 

4. Select delivery mode: Once you have filled all the required fields, you need to select the delivery mode from “Courier” or “Collect in person”. In the option of “Collect in person”, the customer has to visit in the branch and collect the same. Further, in the “Courier” option, the DD will be delivered at your home and the bank can ask for some additional courier delivery charges.

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