Demand Draft – How to make/cancel DD? Bank Charges for DD


Updates and details for Demand Draft – How to make/cancel DD? Bank Charges for DD:

A Demand Draft which is also known as DD is a method used by an individual for making a transfer payment from one bank account to another. Demand Drafts is different from normal checks in that they do not require signatures to be cashed, and were originally designed to benefit legitimate telemarketers who needed to withdraw funds from customer checking accounts using their bank account numbers and bank routing numbers.

It is not necessary to have a Bank Account in the Bank from where you are preparing a Demand Draft. The DD can be made by paying the Bank in Cash as well, but for DD exceeding Rs.50,000 the payment should be by cheque only. Quoting your PAN No. is also necessary in case the value of DD is more than Rs.50,000.



Differences Between a Demand Draft and a Check

  • A Demand Draft is issued by a bank, while a check is issued by an individual.
  • A Demand Draft is drawn by an employee of a bank, while a check is drawn by a customer of a bank.
  • Payment of a Demand Draft may not be stopped by the drawer as it may with a check. Because a demand draft is a prepaid instrument, payment cannot be stopped, while payment of a check may be denied for insufficient funds.
  • A Demand Draft cannot be hand-delivered like a check. It may be drawn regardless of whether an individual holds an account at the bank, while a check may be written only by an account holder.

Hot Article: Professional Tax – Gujarat Professional Tax Slab Rate

How to make Demand Draft

1. Fill the form– Visit any bank and ask for a demand draft application form or fill the form online.

2. Form Details– You need to fill up the details like the model in which you want to pay through cash or from your account using the cheque.  in whose favor, the DD is to be made (beneficiary),  the amount , the place where DD will be encashed, cheque number, your bank account number, your signature etc

3. Demand draft charges– The bank will provide the demand draft once you submit the form along with the money/cheque and the demand draft charges. The charges vary from bank to bank

4. Pan card details– If amount exceeds more than Rs 50,000 and you are paying my cheque then PAN card details needs to be submitted.

Cancellation of Demand Draft

Once you create (Demand Draft) DD, the amount will be deducted immediately from your account. If for any reason, you want to cancel the DD and want to get the deducted money back into your account, you must have to go to bank.


*Note: There is no online facility in any banks in India to cancel the DD.

If you already have original DD, there can be two cases.

1. You got the DD by paying cash- If you got the DD by cash deposit, you need to submit original DD as well as receipt of cash payment. Amount will be refunded to you in cash immediately with some deduction of amount (around Rs 100-150).

2. If you paid the amount of DD from your account- In this case you just need to submit original DD with filled cancellation form. Amount will be credited back into your account with some cancellation charge of around Rs 150.

Bank Charges for Demand Draft:

The Demand Draft charges are different with the value of the Draft. Banks usually charge a variable fee Rs. 1.5 to Rs. 4 per thousand plus Service Tax. However, if the value of Draft is small, they may charge flat fixed charges as well. The charges may be lower in the case of Privilege Banking Customers.

Stay tuned with us for more updates and keep browsing our site.

Scroll to Top