Demand Draft Fees – How Much Does Making a Demand Draft Cost?

The Demand Draft, or a DD, is a negotiable instrument like a cheque which is used for transferring payments between two bank accounts. In India particularly, DDs are very popular among common people, perhaps as they are a more secure method of cashing cheques. However, there is a certain amount of expense that is incurred while making a DD from any bank. This is what we call the demand draft fees or the demand draft charges. Let us look at it in detail.

It may seem that making a DD is easy, it definitely is for a certain extent and for some people but, a bank costs a fair amount of time and therefore, people in the process. Hence, a DD becomes costly for the bank. To recover from this expense, the bank charges some demand draft fees. This fee increases with the amount of the DD. It also varies from one bank to another. But, there is also a float that is earned by the bank on the demand draft.

Demand Draft Picture

To understand what a float actually means, let us take a certain example. I deposit 1,00,000 rupees in a bank as a DD to be mailed to a friend. She encashes the DD after four-five days. During this time, the 1 lac rupees remain with the bank which earns an over-night interest on it. This income is the float and it goes on increasing until the DD is cashed by the beneficiary. However, this sum of money is significant only when the amount of the DD is huge and it is not cashed on the same day. This is not very common because demand drafts are received very quickly these days.

There are many different banks in India and all of them charge different rates for the demand draft fees. When you have to make a DD of a big sum of money, it is better to spend some effort looking for cheap demand draft charges. This expense is generally categorized into some amount ranges.

For DDs uptill Rs. 10000, the HDFC and the ICICI banks charge Rs. 50 while the SBI charges Rs. 30 (sometimes more). The demand draft fee between Rs. 10001 and Rs. 50000 is Rs. 2.50 per thousand for HDFC and SBI while it is Rs. 3 for ICICI bank. Above 50000, HDFC charges Rs. 2 per thousand. However, according to the info available on the net recently, a DD of more than 1 lac does not cost any fee in HDFC and ICICI banks.

Yet, there are certain terms and conditions for these rates and they are subject to change. Therefore, they must be confirmed with the respective banks.

  • Vinay Neekhra

    @admin Info is good, it will be better, if you give it a tabular form (it will be more comfortable) to the users. btw, Good going, Keep it up :D

  • siddhartha saxena

    sir iwant to know the dd charges of RS 46250 ONLY

  • Balbirpathania

    lost d.d.prosure

    • Rk4cms

      sir,i want to know about the dd charges of RS168500 ONLY

  • Chandan Raaz

    sir,i want to know about the dd charges of RS168500 ONLY………….

  • Manaskumar

    SIRi want to know about the DD charges of rupees 3850000

  • user

    above 1 lac cost rs3/- per thousand for ICICI bank

  • Rocknavin

    Sir i want to know that “RBI has made any amends in Demand Draft Policy”

    like ‘Amounting upto Rs 20000/- their is no Photo Id has to submit.’ and “Above Rs 20000/- we have to submit Photo Id proof”

    because I know that upto Rs 50000/- no photo id proof but above Rs 50000/- photo id has to submit

    Kindly clear my doubt.
    Thanks

    • JRD

      i was asked for a ID proof for a mere Rs.250- DD by the ICICI bank, CHAMRAJPET BRANCH, BANGALORE.

  • Anenroy

    sir,i want to know about the dd charges of RS24200 ONLY………….

  • Ann

    which is the DD number ? Is it the number in ” ” below

  • Irfankhanirfankhan134

    what is the guidlines issue by RBI for issuing the DD in all over india.

  • BVGirish

    i’m ex-servicemen & sernior citizen, i wnat to take a DD in favour of RTO. Is there any rebate in DD charges

  • Surajkalase

    i want 150000 rs dd. which bank charge is less ???? & how much charge is appy

  • JRD

    icici bank is charging rs. 165/- for a dd of rs. 250/-……. can any1 guide, where to complaint for this issue.
    CA JRD
    iamlivingin2008@gmail:disqus .com

  • http://www.consumerscomplaints.in/ User

    Gr8 Good article about DD charges compare to other banks also

  • Joshi Jugalkishore

    JUGAL WANT TO KNOW  DD CHARGES FOR RS. 180000/-

  • karthik jalla

    Sir,do we need only PAN card as Photo Id proof or else we can submit any form of Photo Id proof other than PAN card for dd above 50,000 rs

  • Sun_lulekar

    I want to know charges required for DD of Rs 50050/- in Syndicate bank

  • nishant

    nishant want to know dd charges for rs.1o930 

  • Dkboss2007

     sir,i want to know about the dd charges of RS 8 lakhs ONLY