Charges For Demand Draft

Demand Draft is a negotiable instrument issued by a bank. In simple terms, it means that the demand draft guarantees a certain amount of payment to the payee mentioned in the demand draft. there are many things related to this like charges for demand draft, How it works, how to make Demand drafts etc.

Let’s understand more about this.

What is Demand Draft

It is a document/instrument issued by a bank to its client instructing another bank or one of its own branches to pay a certain amount to the mentioned party.

A drawer is a person making the payment for demand draft the drawer instructs the bank to make the payment to a specific person/organization called Payee (who receives cash).

This can be compared to cheque but demand draft is difficult to cancel or revoke.

How Demand Draft Works

Anyone can create a demand draft. It is irrespective of having a bank account. Anyone who wants to pay a certain amount to an institution/organization or any individual can issue a demand draft.

The individual can visit a bank, and ask for a demand draft form or can fill the form online as well.

The amount can be paid either in cash or through Cheque.

The bank charges some fees to issue DD. It can vary from bank to bank and also depend on the amount of DD issuance.

Read Also What is Dormant Account

How to Fill Demand Draft (DD) Form

Follow the below steps in order to fill DD form.

  • Get the form from the bank or fill it online.
  • Enter important details like mode of payment (Cheque/Cash), name of beneficiary, bank account number, signature etc.
  • Mention cheque number if you are paying through Cheque.Also mention PAN details in case you are paying more than Rs. 50000 through cheque.
  • After entering all the details submit DD form to the counter. bank counter officials will give you receipt having all the important details.
  • After some time or instantly you will get your demand draft as per the details entered while filling DD form.

How to Cancel DD

Already issued DD can not be canceled just like that. In order to cancel it, you have to follow the below procedure.

In case if you paid through Cash

you need to submit the original demand draft along with the receipt in order to proceed with the refund. The bank will deduct Rs 150 to 200 as cancellation charges.

In case if you paid through Cheque

If you paid the amount through cheque and it got deducted from your bank account, you need to submit the original demand draft, receipt, and duly filled cancellation form.

The Bank will refund the amount paid with a deduction of Rs.150 to 200 as cancellation changes.

Demand Draft Charges

you can find demand draft charges of the major banks listed below.

BankDD Amount & Charges
State bank of India (SBI)Up to Rs. 5000 = Rs. 25
Rs.5000 to Rs.10000 = Rs. 50
Rs.10000 to Rs.100000 = Rs. 5 per Rs.1000 (Minimum Rs. 60)
Above Rs. 100000 = Rs. 4 per Rs.1000 Min. Rs. 600 Max. Rs. 2000
Punjab National Bank (PNB)For Customers of Semiurban, Urban & Metro Branches
Up to Rs. 10000 = Rs. 40
Above Rs. 10000 = Rs.4.00 per Rs.1000 (Min. Rs.50 max. Rs.12000.

For Individuals Rural branches, pensioners, & senior citizens
Up to Rs. 10000 =Rs. 35
Above Rs. 10000 = Rs. 3.50 per Rs.1000 Min. of Rs.40 and Max. Rs.12000

For Students Exam fees only
Up to Rs. 10000 = Rs. 30
Above Rs. 10000 = Rs.3.00 per Rs.1000 Min. of Rs.30 and
Max. Rs.12000
Bank of Baroda (BOB)Individual up to 1 lakh Metro Urban
Up to Rs. 5000= Rs.40
Above Rs. 5000 to Rs. 25000= Rs. 60
Rs. 25001 to 1 lakh= Rs. 3 per Rs. 1000 ( min. Rs. 40 maxm Rs. 300)

Individual up to 1 lakh semi-urban/rural,Senior citizen & Pensioner
Up to Rs. 5000= Rs. 30
Above Rs. 5000 to Rs. 25000= Rs. 50
Rs. 25001 to 1 lakh= Rs. 2.50 per Rs. 1000 ( min. Rs. 30 max. Rs. 250)
Canara BankUp to Rs.1000= Individual Rural: Rs. 25, Non-rural: Rs.30, Non-individual: Rs.40

Rs.1000 to Rs.10000= Individual Rural: Rs.35, Non-rural: Rs.40
Non-individual: Rs.50

Above Rs. 10000= Individual Rural: Rs.3.5 per Rs. 1000 or min. Rs.40 Max. Rs.10000
Individual Non-rural: Rs.3.50 per Rs. 1000 or min Rs.40, max Rs.12000
Non-individuals: Rs.4 per thousand or min. Rs.50, max Rs.1200
ICICI BankUp to Rs.10000= Rs. 50
Above Rs.10000= Rs.5 per Rs. 1000 or min. of Rs. 75 and a max. of Rs. 15000

For Rural locations – Amount upto Rs.10000= Rs.40
Rs.10000 to Rs. 50000= Rs.60
Above Rs. 50000= Rs. 5 per Rs. 1000 or a maximum of Rs.15000
HDFC BankThrough Branch
Free up to Rs. 25000
Above Rs. 25000 = Rs. 5 per 1000 (min Rs. 75 & max Rs. 10000)

Through Net Banking
Up to Rs. 10 Lakh = Rs .50+ (Corr. Bank charges if applicable)
Third-party DD up to Rs. 1000000 Rs .50+(Corr. Bank charges if applicable)
Bank of India(BOI)Upto Rs. 5000= Rs. 25
Rs. 5000 to Rs. 10000= Rs. 50
Rs. 10000 to 1 lakh= Rs. 5 per Rs. 1000, min. Rs. 60
Above Rs. 100000= Rs. 4 per Rs. 1000 Min. Rs. 600 & Max. Rs.15000


We have learned about demand draft( DD), how to fill, charges for demand draft in this article. Hopefully, this information will be helpful.


1: Can I apply for demand draft online?

Yes, you can apply for DD online if your bank provides this service. make sure you check with your bank to confirm once.

2: The charges for DD is same for all banks?

No, it won’t be the same. the charges vary from bank to bank and also based on the amount of DD.

3: Is there any cancellation charges for demand draft?

There will be cancellation charges of Rs. 200 to Rs. 250 depends on the bank.

4: Maximum how much I can pay in cash to issue a demand draft?

As Per RBI maximum of Rs.49,999 can be paid to issue a draft.

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