We all know about the contemporary payment modes used by the bank nowadays. The role of physical negotiable bank instruments is reducing every year by individuals and organizations. Most organizations and governments are now focusing on one “One-Click Payment” mode to encourage paperless payments. However, traditional payment modes are still used for receiving and paying money. Therefore, in this post, let’s take a look at what is demand draft? How to make DD in bank?
Table of Contents
What is Demand Draft?
One of the traditional methods used by banks and financial organizations to pay and transfer money is demand draft. People who are looking for information about this banking and payment instrument in a more comprehensive manner should take a glimpse of this article till the end.
A simple and clear definition of DD:
Commonly this instrument is known as DD in India. This documented work as the pre-paid negotiable instrument for the bank or financial instrument to make the complete payment to the payee organization.
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Major Questions
Plenty of questions asked and search by the individuals on the Internet related to this instrument. Such as how to make DD in bank? What is the validity period of demand draft? The queries list does not end here, and they are also looking for more details to know on this concern appropriately. We are going to disclose a complete guide for you on how to make a DD.
Major places where DD is used
1. School/ College Fees
2. Government Exam Application Fee
3. Government Applications
4. Bill Payment
5. Fee or Payment in Government and Non-Government Agencies
Charges for Creating a DD
When you visit any bank for a DD, then one question that also came to your mind is about the extra charges of the bank. Is the bank also charge extra cost over the total cost of DD? Yes, the fact is the bank also charges extra-cost or charges for making DD for an individual.
How to make DD from Bank?
If you have no idea about “how to make Demand Draft”, then taking a glance at the mechanism or process is vital for you.
1. Collect DD form from the bank or online services:
Gone were the days when people need to visit a bank or agency place to collect DD. Nowadays, the accessibility of online services is also an added benefit for the users, and they can download the demand draft form application. With this, you can get easy to fill a form at home without any hassles.
2. How to fill form or how to make DD in bank?
Once you get the form, then the next question or concern is how to fill this form. Many users who didn’t have any experience in filling DD forms and unsure about the clear-cut things always look for genuine and appropriate information to fill the DD.
Details to be filled in the form:
- Name of individual or organization for whom you want to issue the DD.
- Fill in the total amount.
- Also, select the payment mode (either cash or cheque).
- If choosing a cheque then enter the cheque number.
- Fill in bank account details
- Details of encashment
- Signature of individual who is going to submit DD.
How to make DD online?
One of the immensely popular queries is “how to make DD online”. If you are thinking to use the online approach to make it, you can also save your time because you don’t need to visit the bank. For example, nowadays, every individual has a bank account, even a child, because the Government of India encourages bank account accessibility in the urban and rural areas.
Who can make it online?
A person who has access to “Net Banking” can use the online facility. You can log in on your bank net banking portal and select the option of the “transfer/payment” tab. Here you can also view the option of “Demand Draft”. Once you choose this option, then fill in the relevant details in the form of DD. You can collect your DD through courier or collect from the branch.
Validity of Demand Draft in India
A demand draft is valid for only 3 months from the date of issuance as per RBI guidelines from April 1, 2012. Initially, DD was valid for 6 months from the issuance date.
How to make Demand Draft in SBI?
There are two stages to make demand draft in SBI, and first is to visit the branch of SBI and collect the form, fill them and submit the form. The second stage is not too much complicated for the users, and within few simple clicks, they can make it in few minutes.
First of all, a person is eligible to make it online in SBI if he/she has accessibility of net banking only. Here are the few steps:
1. Visit the official website of SBI (net banking).
2. You must keep your login Id and password to proceed with login.
3. Next step, kindly click on the “Payment and Transfer” option in the dashboard.
4. Select “Issue Demand Draft” on the dashboard page.
5. SBI focuses on the high-security feature, and that’s why when you select this option, then also add the profile password.
6. Fill in the details in the DD form of SBI online.
7. Now at the next step, you need to “Select Delivery Mode”.
8. You will receive your DD through courier or collect it by yourself from the bank branch.
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Frequently Asked Questions
1. How to make demand draft through cheque?
You can make it through cheque by entering the cheque number and total amount paid in the form.
2. What is the validity of demand draft in India?
DD validity is 3 months in India.
3. Is the demand draft validity the same in all the banks?
Yes, demand draft validity in India for all banks is the same. DD validity is 3 months from the date, it got created.
4. How to make a demand draft online?
You can log in through the net banking of your bank to make DD online.
5. Can I cancel the demand draft?
Yes, you can cancel the DD by visiting the bank to raise a cancellation request and if you had paid cash then you will receive cash after cancellation and if you pay through cheque then you will receive the amount in a bank account.
6. Should I require to submit a PAN number while making the DD?
If the DD costing is above 50,000 then you need to submit the PAN number as well.
7. Is the demand draft the same as the cheque?
No, both are two different payment instruments.
Final Thoughts
I hope now you know how to make DD in bank. As you know a demand draft is a negotiable instrument issued by the bank. A DD can be issued either against money paid in cash, by a cheque, or through net banking. Please note that DD issuance using a cheque requires a bank account.
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