how to send a demand draft

How to send a Demand Draft?

by Ankit Jaiswal on Banking, Basic Finance

Yesterday I went to my neighborhood bank to update my personal details. As I waited for my turn, I noticed a young man struggling with a form. My “always helping” nature landed me asking him about his frustration, to which I came to know that he is a college student and is attempting to make a demand draft for applying to an MBA college. I did guide him, to which I got a smile and lots of feel-good factors.  So I told myself to write a blog on “How to Send a Demand Draft?”.

Today most of the institutes and organizations accept payments from people in the form of Demand Draft instead of Account Payee Cheques.

Do you know why?

The reason being, it is a secure way to transfer the funds than an Account Payee Cheque which has a problem of insufficiency of funds associated with it. For example, when someone wants to apply for a government project, the tender registration fee which is submitted along with tender should be in the form of Demand Draft.

Let’s understand what is a Demand Draft?

A Demand Draft is a negotiable instrument similar to a Bill of Exchange which is used by individuals to make transfer payment from one bank account to another.

Here’s a list of how to send a Demand Draft-

how to send demand draft

1. Ask for the Form– Visit any bank and ask for a Demand Draft application form.

2. Form Details– You need to fill up the details like the mode in which you want to pay money to the bank i.e. through cash or from your account, the mode in which we need to pay to the beneficiary, name of the sender and the recipient, the amount which is to be transferred and the place where the money is to be transferred.

3. Demand Draft Charges– The bank will provide the Demand Draft once you submit the form along with the money to be transferred and the Demand Draft charges.

4. Pan Card Details– The amount transferred if exceeds more than Rs 50,000, then PAN card details need to be submitted.

Also Read5 easy steps to apply for a PAN Card

However, the charges vary from bank to bank. In case the Demand Draft is for a large sum, it’s more sensible to opt for a bank which takes lower charge.

Moreover, it’s not mandatory to have a bank account with the bank to send these drafts.

Stay happy and keep learning!!


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10 comments

    • Hello Subrata,

      Thank you for your comment.

      Your question was not very clear.We are assuming by DD papers you meant the Demand Draft.Yes, you will have to send the Demand Draft to the person for whom it is being made or who will take it.
      You may read more blogs on banking topics on our site: Elearnmarkets.com

      Happy Reading!

    • Hello Sabita,

      Thank you for your comment.

      In order to send a demand draft, you will have to follow the following steps:
      1. Visit any Bank Branch and ask for the Demand Draft Form.For Demand Draft Purpose it is not mandatory to have a bank account with the bank from which you are taking the demand draft.
      2.Fill up the necessary details in the form.
      3.Submit the form along with the money to be transferred and the demand draft charges.The demand draft charges vary from bank to bank.If the Demand Draft is for a very large sum it is sensible to opt for a bank with a lower demand draft charge.
      4.Once you submit the dd form, the money to be transferred and the demand draft charges, the bank will provide you with the DD.
      5.If the amount to be transferred exceeds Rs 50,000 you will have to provide your PAN Card Details.
      6.Once you have your Demand Draft, you can attach it with the requisite form and send it.
      If you want to read on more banking topics you may read here.

      Happy Reading!

      • I need your kind help to clarify one query regarding sending DD to Canada for my educational credentials verification.I got reply from them which states-
        We do not accept bank drafts that are not negotiable without charge in Canada. This means we will not accept a bank draft that we cannot draw without charge from a Canadian bank. From our experience the State Bank of India bank drafts are no negotiable without charge in Canada. We no longer accept these bank drafts.
        So could you please clarify this point.
        Regards,
        Ranjeet Singha

        • Hello Ranjeet,

          Thank you for your comment.

          We do not have domain expertise to help you with regards to the issue faced by you.

          Your bank will be the best person to guide you in this regard.

          You can read more blogs on banking topics here.

          Happy Reading!!

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