What are Demand Drafts?
The Demand Draft is a device used to transfer payments from one bank account to another. Like a cheque, a Demand Draft also is a negotiable instrument. This instrument is used by most banks in India for the effective transfer of money. Demand drafts are comparatively a more secure method of cashing cheques, and hence its popularity among customers. A Demand Draft is different from a normal cheque. The major difference is that a Demand Draft does not require a signature for it to be cashed. A demand draft is also known as a ‘remotely created cheque’.
How to fill a Demand Draft?
The method of filling a Demand draft.
We have to provide certain information to the bank for buying a DD. For this we have to fill in an application form which asks for the following information:
- The type of instrument needed.
- The mode in which the money is paid i.e. through a bank account or in cash.
- The mode in which you will pay money to the bank i.e. by debiting to your account or by cash.
- The concerned place where the money is to be paid.
- Name of the Sender.
- Name of the recipient.
- The amount which is to be transferred.
The Demand draft for the amount will be provided by the counter clerk when we present the application form along with the cheque on our account or if cash is deposited for the same amount.
Things to be noted while handling a Demand Draft.
- The particulars like the name of the beneficiary, amount, and the place where payable etc. in the DD should be the same as what we have filled in the application form.
- The spellings of the beneficiary’s name should be exactly the same.
- We must get the Demand Draft crossed for security.
- If the DD amount is more than Rs. 50,000 then the PAN number will be necessary.
- The charge for taking a demand draft varies with the bank. If we have to take the DD for a large sum then it is better to reach for the bank which charges less.
after receiving the demand draft how does it looklike,
can i make a DD of previous month in this current month. Pls suggest………..urgent
Hi Anand,
I think it is not possible. However, if you have a an old dated DD, you can still use it.
- MGI Team
what is the time duration of the dd to be produced ??? if a dd is 2 yrs to 4 yrs old then that dd can still be produced or like a cheque the dd expires with some time duration and what can be the time duration of the validity of an demand draft?????
Hi Akshat,
In fact DD has a time limit written on the DD itself. Normally, something like “Valid Only for 6 Months” etc. Thus, after 6months of issued date, the DD becomes invalid.
I hope that answers your question.
Hi Akshat,
DD has a time limit. In some DD’s the expiry date will be written on the face of the DD like (” Valid upto ……. ).
But in some DDs,nothing abt expiry will be written on the face. In such cases it becomes stale after 6 months from the date of purchase.(ie,from the date on the face of the DD).
After the expiry date, if u want to get the DD cashed,Get the DD revalidated from the branch from which the DD is taken.If the issuing branch is distant, present the DD in your bank and they will revalidate the same by sending to the issuing branch.(Ur bank may take some charges for the same).The DD is valid for another 6 months from the date of revalidation.
Can we use credit card to obtain a DD(Demand Draft).
I mean Can we use credit card instead of cash payment.
Hi Ravi,
I’m afraid, you cannot use CC for DD. As far as I know, you could use CC at any ATM and withdraw cash for DD.
can we use dd upto 6 months
Hi Sanmathi,
Yes, you can use DD upto 6 months. In fact, the DD bear the expiry period on the DD itself.
hope that helps
i want 2 know about the security processes involved in dds
What do you mean by saying that “get dd crossed”?,does it mean pasting a transparent gum tape on the dd where the amount is written? should we sign on the DD at the back of it before giving it to the concerned person?
Hi, X has got a duplicate DD issued by banker with complaint stating Original DD being lost. Meanwhile the actual beneficiary holds the original DD returned by the bank.
Meanwhile the Issuer of DD is dead and the duplicate dd is not with the real beneficiary.
Should the bank honor the Original DD. Or is there an provision that banker can stop the payment based on instruction from their legal heirs?
Who should be the owner of DD on expiry is it the Beneficiary or the Legal Heirs.
Hi,
Can any one tell me that if i have taken DD from hyderabad and that same DD is valid in Bnagalore.what i meant to say is i want to take DD in hyderabad and that same DD i want to give it in bangalore SMU University.pls its urgent…
Hi..,
1. as i know that in DD must have the recipient name and checking account no, right.? But can the bank providing the DD allows to put the receipient savings account no. instead of checking account no.?
2. Can the drawee make the DD and put the recipient under his own name wt his own account no. on the other different bank located overseas.?
3. Upon the drawee deposits into his account, how long wil it takes the DD money reached to the recipient, and receipient can withdraw straightaway.
Hi..
As i know that there is the so called “Bank Instruction” where you can instruct the bank to transfer your fund to the other bank. What’s the different between “bank instruction” and “DD”?
Hey If someone sends a DD on your name.How to cash it?Can we put it in dropbox with the slips attached like cheques or we need to go to bank to deposit ?
Can I issue a demand draft from a particular bank which has no branch at the place mentioned in “payable at” field? If yes how will the recipient get the money in that case?
what do we need to write while filling up the DD details in an apllication wen asked about the BRANCH NAME??? whether it si the branch name of the issuing bank or the branch name of drawee bank???plzzz answer…its urgent
Can i send DD from India to Malaysia?
what will be there procedures?? how the person in Malaysia can receive the DD n transfer it to cash??
Can you suggest me the various security measures for Demand Draft and Pay Order ?