{"id":7254,"date":"2025-07-01T09:44:03","date_gmt":"2025-07-01T09:44:03","guid":{"rendered":"https:\/\/lemonn.co.in\/blog\/?post_type=banking&#038;p=7254"},"modified":"2025-07-01T09:44:38","modified_gmt":"2025-07-01T09:44:38","slug":"what-is-a-demand-draft-dd","status":"publish","type":"banking","link":"https:\/\/lemonn.co.in\/blog\/banking\/what-is-a-demand-draft-dd\/","title":{"rendered":"What Is a Demand Draft (DD)?"},"content":{"rendered":"\n<p>A <strong>Demand Draft<\/strong> is a prepaid bank instrument guaranteeing payment of a specified amount to a named beneficiary. Key highlights:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Funds are collected upfront, ensuring zero risk of bounce.<\/li>\n\n\n\n<li>No signature required for encashment, making it highly secure.<\/li>\n\n\n\n<li>Can be issued even if the drawer doesn\u2019t bank with the issuing bank.<\/li>\n<\/ul>\n\n\n\n<h3 id='types-of-dd'  id=\"boomdevs_1\" class=\"wp-block-heading\">Types of DD:<\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Sight DD<\/strong>: Payable immediately upon presentation.<\/li>\n\n\n\n<li><strong>Time DD<\/strong>: Payable after a specified date.<\/li>\n<\/ul>\n\n\n\n<h2 id='how-does-a-demand-draft-work'  id=\"boomdevs_2\" class=\"wp-block-heading\">How Does a Demand Draft Work?<\/h2>\n\n\n\n<ol class=\"wp-block-list\">\n<li>Submit a DD application\u2014either online via net banking or in-person at the branch.<\/li>\n\n\n\n<li>Bank debits your account or accepts cash, then issues the draft.<\/li>\n\n\n\n<li>Beneficiary encashes or deposits the DD at their bank; the amount gets debited from the issuing branch.<\/li>\n\n\n\n<li>Valid for <strong>3 months<\/strong>; after expiry, can be revalidated or refunded with bank approval.<\/li>\n<\/ol>\n\n\n\n<h2 id='how-to-get-a-demand-draft'  id=\"boomdevs_3\" class=\"wp-block-heading\">How to Get a Demand Draft<\/h2>\n\n\n\n<h3 id='offline'  id=\"boomdevs_4\" class=\"wp-block-heading\">Offline:<\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Visit any branch and fill out the DD form.<\/li>\n\n\n\n<li>Pay the specified amount and applicable fees.<\/li>\n\n\n\n<li>Collect the printed Demand Draft.<\/li>\n<\/ul>\n\n\n\n<h3 id='online'  id=\"boomdevs_5\" class=\"wp-block-heading\">Online:<\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Log into your net banking \u2192 Services\/Requests \u2192 <em>Issue Demand Draft<\/em>.<\/li>\n\n\n\n<li>Enter payee details, amount, issuing\/paying branch, and delivery preferences (branch or courier).<\/li>\n<\/ul>\n\n\n\n<h2 id='demand-draft-charges-approx-india-wide'  id=\"boomdevs_6\" class=\"wp-block-heading\">Demand Draft Charges (Approx India-wide)<\/h2>\n\n\n\n<p>Charges vary by bank and the DD amount. Examples:<\/p>\n\n\n\n<h3 id='sbi'  id=\"boomdevs_7\" class=\"wp-block-heading\"><strong>SBI<\/strong>:<\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Up to \u20b95,000: \u20b925<\/li>\n\n\n\n<li>\u20b95,001\u2013\u20b910,000: \u20b950<\/li>\n\n\n\n<li>\u20b910,000\u2013\u20b91\u202flakh: \u20b95 per \u20b91,000 (min \u20b960)<\/li>\n\n\n\n<li>Above \u20b91\u202flakh: \u20b94 per \u20b91,000 (min \u20b9600; max \u20b92,000)<\/li>\n\n\n\n<li>Cancellation\/duplicate DD: \u20b9200 + GST<\/li>\n<\/ul>\n\n\n\n<h3 id='general-bank-slabs'  id=\"boomdevs_8\" class=\"wp-block-heading\">General Bank Slabs:<\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Up to \u20b91\u202flakh: \u20b9100<\/li>\n\n\n\n<li>Above \u20b91\u202flakh: 0.1% of DD amount (max \u20b92,500)<\/li>\n\n\n\n<li>Additional courier or cash remittance fees may apply.<\/li>\n<\/ul>\n\n\n\n<h3 id='icici-bank'  id=\"boomdevs_9\" class=\"wp-block-heading\"><strong>ICICI Bank<\/strong>:<\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Nil up to \u20b925,000; above that, \u20b93 per \u20b91,000 (min \u20b975, max \u20b915,000)<\/li>\n<\/ul>\n\n\n\n<p>       Note: From <strong>July 1, 2025<\/strong>, ICICI revised its DD charges along with other service fees.<\/p>\n\n\n\n<h2 id='cancelling-or-revalidating-a-dd'  id=\"boomdevs_10\" class=\"wp-block-heading\">Cancelling or Revalidating a DD<\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Submit a written request at the issuing bank branch with the original DD and payment receipt.<\/li>\n\n\n\n<li>Cancellation fees apply (e.g. SBI charges up to \u20b9200 + GST; some banks may waive if amount \u2264 \u20b9500).<\/li>\n\n\n\n<li>DD expired after 3 months? Revalidation or refund available upon bank approval (usually with small fee).<\/li>\n<\/ul>\n\n\n\n<h2 id='pros-cons-of-demand-draft'  id=\"boomdevs_11\" class=\"wp-block-heading\">Pros &amp; Cons of Demand Draft<\/h2>\n\n\n\n<h4 id='benefits'  id=\"boomdevs_12\" class=\"wp-block-heading\">Benefits:<\/h4>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Trusted and <strong>guaranteed payment<\/strong>.<\/li>\n\n\n\n<li>No risk of <strong>insufficient funds<\/strong>\u2014amount is prepaid.<\/li>\n\n\n\n<li>Accepted nationwide; suitable for large or formal payments (e.g. education, property).<\/li>\n<\/ul>\n\n\n\n<h4 id='limitations'  id=\"boomdevs_13\" class=\"wp-block-heading\">Limitations:<\/h4>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Processing takes a few days; slower than electronic transfers.<\/li>\n\n\n\n<li>Issuance and cancellation fees apply.<\/li>\n\n\n\n<li>Physical DD may get lost\/stolen\u2014must be reported immediately to issuing bank.<\/li>\n<\/ul>\n\n\n\n<h2 id='quick-recap-table'  id=\"boomdevs_14\" class=\"wp-block-heading\">Quick Recap Table<\/h2>\n\n\n\n<figure class=\"wp-block-table\"><table><thead><tr><th>Step<\/th><th>Action<\/th><\/tr><\/thead><tbody><tr><td><strong>Choose DD Type<\/strong><\/td><td>Sight (immediate) or Time (delayed payment)<\/td><\/tr><tr><td><strong>Submit Request<\/strong><\/td><td>Via net banking or at branch with payee and amount details<\/td><\/tr><tr><td><strong>Pay &amp; Issue<\/strong><\/td><td>Bank deducts funds and prints DD; deliver or courier to payee<\/td><\/tr><tr><td><strong>Use Validity<\/strong><\/td><td>Use within 3 months or revalidate\/refund with fee<\/td><\/tr><tr><td><strong>Cancel if Needed<\/strong><\/td><td>Submit request + DD + receipt; pay cancellation fee<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<h2 id='pro-tips'  id=\"boomdevs_15\" class=\"wp-block-heading\">Pro Tips<\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Double\u2011check payee name, amount (in figures &amp; words), and paying branch code.<\/li>\n\n\n\n<li>For high\u2011value DDs, consider courier delivery for security.<\/li>\n\n\n\n<li>Keep a photocopy or photo\u2014helps in cancelation if lost.<\/li>\n\n\n\n<li>Watch for July 2025 updates\u2014some banks like ICICI have revised DD fee schedules.<br><\/li>\n<\/ul>\n\n\n\n<h3 id='final-takeaway'  id=\"boomdevs_16\" class=\"wp-block-heading\">Final Takeaway<\/h3>\n\n\n\n<p>A <strong>Demand Draft (DD)<\/strong> remains a reliable, bank-guaranteed payment tool\u2014ideal when trust or receipt confirmation is needed. It&#8217;s widely accepted, safe, and especially useful for formal purchases or inter-bank transfers. Just remember to factor in issuance and cancellation fees, validate details carefully, and use within the validity period.<\/p>\n\n\n\n<p><\/p>\n","protected":false},"featured_media":0,"template":"","class_list":["post-7254","banking","type-banking","status-publish","hentry"],"blocksy_meta":[],"_links":{"self":[{"href":"https:\/\/lemonn.co.in\/blog\/wp-json\/wp\/v2\/banking\/7254","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/lemonn.co.in\/blog\/wp-json\/wp\/v2\/banking"}],"about":[{"href":"https:\/\/lemonn.co.in\/blog\/wp-json\/wp\/v2\/types\/banking"}],"wp:attachment":[{"href":"https:\/\/lemonn.co.in\/blog\/wp-json\/wp\/v2\/media?parent=7254"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}