SBI DD Charges

A demand draft is a bank-issued negotiable instrument. The drawer is the person who issues the draft, and the payee is the person on whose behalf it is issued (beneficiary). A demand draft is similar to a bill of exchange that the payee issues on demand. It is due immediately. The draft instructs another bank or branch to pay the payee the specified amount at a specified time and location. All account holders at the State Bank of India (SBI) have access to demand drafts. However, there are some fees associated with it, so account holders should check SBI DD Charges.

What is a Demand Draft

  • A demand draft is a non-transferable negotiable instrument offered by a bank. It is issued by a bank and drawn by a "Drawer" who is responsible for making the payment. When it is presented, the drawer instructs the bank to make a payment to a specific person or organisation known as the "Payee" (the one who receives the cash).
  • When a DD is presented, unlike when a cheque is presented, the bank cannot refuse the payment due to insufficient funds. This is because DD is a prepaid payment instrument, and the Drawer would have already paid for it.



Up to Rs. 5,000

Rs. 25

From Rs. 5,000 to Rs, 10,000

Rs. 50

From Rs. 10,000 to Rs. 1 lakh   

Rs.5 per Rs.1000 or part thereof, with a minimum of Rs.60

Above Rs.1 lakh

Rs.4 per thousand or part thereof, with a minimum of Rs.600 and a Maximum of Rs.2,000

What are SBI DD Charges

A demand draft is issued for a small fee by banks. This fee is calculated based on the size of the draft. There is a category that specifies the SBI DD charges minimum and maximum limits. Demand draft fees also differ depending on whether the bank is paid in cash or by check.

Validity of SBI Demand Drafts

  • The validity of a demand draft issued by the bank is three months from the date of issue. The draft will expire after that time if it is not presented. The bank, on the other hand, can revalidate an expired demand draft. The drawer is the only one who has the authority to revalidate the draft. In no circumstance can a payee revalidate a draft. Furthermore, a revalidated demand draft cannot be revalidated.
  • A small fee is also charged by banks for revalidating a demand draft. The cost of revalidating a demand draft is Rs.200+GST.

Demand Draft Cancellation at SBI

  • People frequently want to cancel a demand draft that has been issued. There could be several reasons for this, but a draft that has already been issued cannot simply be cancelled. For this, you must follow a procedure. Demand drafts issued for various modes of payment have different procedures. Both procedures are described in this article.
  • Cash Demand Draft: To receive a refund, you must submit the original DD to the bank along with the receipt. Around Rs.200+GST will be deducted by the bank.
  • If you paid the DD amount by cheque and it was deducted from your bank account, you must submit the original DD along with a duly filled cancellation form, and the money will be credited back to your account after a deduction of Rs.200+GST.
  • Cancelling a demand draft, on the other hand, can be a pain if you've misplaced it yourself or through the postal service. When you ask for the demand draft to be cancelled, the bank will require the original DD. In such cases, you can either give them the DD number or ask them to look it up in their database. You must remember to keep a photocopy or a snapshot of the demand draft that clearly shows all of the information.

Points to keep in mind to avoid and deal with such scams

  • Keep the drawer's proper contact information: Always extract the drawer's proper contact information and double-check it. This isn't a foolproof method, but it will assist you in narrowing down your search area and locating the fraudster. Keep meticulous records of your conversations or dealings with the drawer so that you are never caught off guard.
  • Always keep a photocopy of the draft: Make a coloured photocopy of the draft and store it safely. This will assist you in identifying the methods used to forge the draft, especially if the draft contains a significant amount of money.
  • When a fake draft is presented to a bank, it is usually taken legal action against the payee right away. This is since they are bound by rules, and their actions are aimed at avoiding any mishaps. Launch a counter-FIR and seek legal counsel, as you are now fighting on three fronts.
  • The first is to deal with the legal process; the second is to find the fraudster, and the third is to try to recoup your losses.

Frequently asked questions

Is it possible to make a demand draught online?

Yes, you can make a demand draught online.

Is the cost of obtaining a demand draught the same at all banks?

No, the fee for obtaining a demand draught differs from one bank to the next.

Will I be charged if I cancel the demand draught?

If you cancel the demand draught, you will be charged a minimum amount.

Will the person be reimbursed if he or she submits the demand draught to the bank even if the bank account has inadequate funds?

Yes, he or she will be compensated because the drawer would have already paid the money when the demand draught was issued. The demand draught is a prepaid payment instrument that should be specified here.

Does SBI impose the same fee for all demand draughts, regardless of the amount?

SBI does not charge the same amount as other banks. The fee is calculated based on the amount for which the drawer is issuing the demand draught.