What is the Demand Draft Charges?
Demand Draft Charges – If you transact money through a bank, then you must have heard about the demand draft. The bank charges specific fees for the issuance of the demand draft. (Click Here to Read in Hindi)
The demand draft may vary depending on the amount to be charged by the banks. Through this post, detailed information will be given about the fees charged by various banks for the issuance of the demand draft. Read this post till the end to know about the additional charges levied by various banks on Demand Draft.
Demand draft is also known as DD in short form. Demand draft is a means of transferring funds through which funds can be transferred from one bank to another bank account. Demand draft was very much in vogue sometime back, but since the introduction of check and online payment, demand draft has lost its popularity. It was indeed a significant mode of payment in the last decade. DD is the most secure mode of payment among other modes of payment as the payment is made to the drawee only when he presents the DD slip to the bank.
What is Demand Draft?
A demand draft is a non-transferable negotiable instrument issued by a bank. The bank issues a demand draft on payment of the amount of the demand draft to the bank by the person making the payment. Special instruction is given to the bank by the person making the demand draft. The amount of the bank demand draft should be released on presenting the original demand draft to any particular person or institution (payee).
In case of demand draft payment, unlike a cheque, the bank cannot refuse the payment on insufficient funds on the production of the original demand draft before the bank by the payee. Because demand draft is a prepaid payment mode, the payment is already paid to the bank by the person making the draft.
Demand Draft Charges in Major Banks of India
The fees charged by different banks in India for the issuance of demand drafts vary. The fee amount to be charged for issuing demand drafts by major banks of India is as follows.
|S.No||Name of Bank||Demand Draft Charges|
|1||Axis Bank Demand Draft Charges||In Axis Bank – 15 Demand Drafts are prepared free of cost daily; after that, an amount of ₹ 50 is charged on each draft.|
In other places – ₹ 1000 is charged a fee of ₹ 1 while at least ₹ 25 per demand draft.
|2||Punjab National Bank or PNB Demand Draft Charges||For ordinary people|
₹40 per demand draft for amounts up to ₹10,000
₹4 per thousand on an amount above ₹ 10000 subject to a minimum of ₹ 50 and a maximum of ₹ 12000 per demand draft
For Individual (Urban, Semi-Urban and Metro Branch)
₹35 per demand draft for amounts up to ₹10,000
₹3.5 per thousand for an amount above ₹10,000, subject to a minimum of ₹50 and a maximum of ₹12000.
For Individual (Rural Branch, Pensioner and Senior Citizen)
₹30 per demand draft for amounts up to ₹10,000
₹3 per thousand for an amount above ₹10000, which can be a minimum of ₹30 and a maximum of ₹12000.
For students (education and exam fee)
₹20 per demand draft on-demand draft amount up to ₹5000
Standard charges will be payable on the amount above ₹ 5000.
|3||Bank Of Baroda Demand Draft Charges||₹50 per demand draft for amounts up to ₹5000|
₹ 3 per thousand on an amount from ₹ 5000 to ₹ 100000, which will be a minimum of ₹ 50 and a maximum of ₹ 300 per demand draft.
₹ 5 per thousand for the amount above ₹ 100000, which can be a minimum of ₹ 500 and a maximum of ₹ 15000 per demand draft.
|4||HSBC Bank Demand Draft Charges||₹100 per demand draft on-demand draft amount up to ₹100000 from HSBC Bank|
For the demand draft amount above ₹100000, 0.1% of the demand draft amount is subject to a maximum of ₹2500.
At non-bank locations (correspondence banks) demand draft 0.3% of the amount subject to a minimum of ₹100 per demand draft.
No charges are levied at the Inter Branch Transfer Loan bank location.
|5||State Bank Of India Demand Draft Charges ( Demand Draft Charges SBI)||₹25 per demand draft on-demand draft amount up to ₹5000|
₹ 50 per demand draft on-demand draft amount from ₹ 5000 to ₹ 10000
₹ 5 per thousand on-demand draft amount from ₹ 10000 to ₹ 100000 which will be a minimum of ₹ 60.Above ₹ 100000
₹ 4 per thousand, which can be a minimum of ₹ 600 and a maximum of ₹ 2000.
|6||HDFC Demand Draft Charges (Through Net Banking)||₹30 on amount up to ₹100000 |
Whereas ₹100 per demand draft on third party Demand Draft up to ₹50000.
|7||HDFC Bank Demand Draft Charges (Through Bank Branch)||₹75 on Demand Draft amount up to ₹50000|
₹ 2.5 per thousand on an amount from ₹ 50000 to ₹ 100000, which can be a minimum of ₹ 250 and a maximum of ₹ 5000.
₹50 is charged through phone banking on demand draft amount up to ₹50000.
|8||Demand Draft Charges in ICICI Bank||No charges on demand draft amount up to ₹25000 per day|
₹ 3 per thousand rupees for an amount more than ₹ 25000, which can be as low as ₹ 75 and maximum ₹ 15000.
The fees charged by some of the major banks in India for issuing demand drafts are given in the above table. If you want to know about the fee charged on Demand Draft for a particular bank, you can visit the official website of the concerned bank.
Demand Draft Charges Related FAQ
Q-1. Does the State Bank of India charge any fee on Demand Draft of any amount?
No, there is no fee charged by SBI Bank on each demand draft. This fee is decided based on the demand draft amount. If your demand draft amount is more, you will have to pay more fees; if it is less, you will have to pay less.
Q-2. Can bank draft payment be refused by the bank citing insufficient amount?
No, the bank cannot refuse the payment, giving reasons for the insufficient amount on the production of the original copy of the Demand Draft by Payee because the amount related to DD has already been paid to the bank by the Drawer.
Q-3. Can I make a Demand Draft online?
Yes, Demand Draft can also be made online. Some banks provide the facility of issuing bank drafts through online mode. By using the official website of these selected banks, one can get the demand draft issued by paying an additional fee.
Q-4. Is the fee charged on-demand draft taken by all banks in respect?
No, the amount charged by each bank for the issue of Demand Draft may vary.
Q-5. If a person cancels the demand draft, will he have to pay an additional fee?
Yes, if someone wants to cancel the issued demand draft, he will have to pay minimum charges for cancelling the demand draft.
Read Also : – How to Close Axis Bank Account Online?