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Demand Draft Charges

A Demand Draft is a negotiable instrument offered by a bank and is non-transferable. It is issued by a bank and is drawn by a "Drawer" who makes the payment. The drawer instructs the bank to make a payment to a specific person or an organisation called "Payee" (the one who receives the cash) when it is presented.

Updated On - 06 Sep 2025
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Demand Draft Charges

Demand Draft also known as DD, a demand draft is a mode used to transfer funds from one bank account to another. With the introduction of cheques and online payments, DD is losing its popularity, however, it used to be one of the most popular payment modes a few decades ago. Unlike online payment transfers, DD is still the safest payment mode as it can only be paid to a drawee when they present the DD slip.

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Demand Draft Charges for Banks

Name of the Bank

Demand Draft Charges

State Bank of India

  1. Up to Rs.5,000 - Rs.25
  2. Rs.5,000 to Rs.10,000 - Rs.50
  3. Rs.10,000 to Rs.1 lakh - Rs.5 per Rs.1,000 (Min. Rs.60)
  4. Above Rs.1 lakh - Rs.4 per Rs.1,000 (Min. Rs.600; Max. Rs.2,000)

HDFC (Through bank)

  1. Up to Rs.50,000 - Rs.75 (Rs.50 via Phonebanking)
  2. Rs.50,000 to Rs.1 lakh - Rs.2.50 per Rs.1,000 (Min. Rs.100)
  3. Above Rs.1 lakh - Rs.2 per Rs.1,000 (Min. Rs.250; Max. Rs.5,000)

HDFC (Through netbanking)

  1. Up to Rs.1 lakh - Rs.30
  2. Third-party DD up to Rs.50,000 - Rs.100 (Limit per customer ID per day)

ICICI Bank

  1. Up to Rs.25,000 per day - Nil
  2. Above Rs.25,000 - Rs.3 per Rs.1,000 (Min.Rs.75; Max. Rs.15,000)

Axis Bank

  1. At Axis Bank- 15 DDs free per day, after which Rs.50 per DD
  2. At other locations - Rs.1 per Rs.1,000 (Min.Rs.25 per DD)

HSBC

  1. Up to Rs.1 lakh - Rs.100**
  2. Rs.1 lakh and above - 0.1% of DD amount (Max. Rs.2,500)
  3. Non-bank locations (correspondent banks) - 0.3% of DD amount (Min. Rs.100)
  4. Non-bank locations (inter-branch transfers)- Free

Bank of Baroda

  1. Up to Rs.5,000 - Rs.50
  2. Rs.5,000 to Rs.1 lakh - Rs.3 per Rs.1,000 (Min. Rs.50; Max. Rs.300)
  3. Above Rs.1 lakh - Rs.5 per Rs.1,000 (Min. Rs.500; Max. Rs.15,000)

Punjab National Bank

  1. Up to Rs.10,000 - Rs.40
  2. Above Rs.10,000 - Rs.4 per Rs.1,000 (Min. Rs.50; Max. Rs.12,000)Individuals (Urban, semi-urban, & metro branches) -
  3. Up to Rs.10,000 - Rs.35
  4. Above Rs.10,000 - Rs.3.50 per Rs.1,000 (Min. Rs.40; Max. Rs.12,000)Individuals (Rural branches, pensioners, & senior citizens***) -
  5. Up to Rs.10,000 - Rs.30
  6. Above Rs.10,000 - Rs.3 per Rs.1,000 (Min. Rs.30; Max. Rs.12,000)Students (Education/exam fees only****)-
  7. Up to Rs.5,000 - Rs.20
  8. Above Rs.5,000 - Normal charges applicable

*SBI DD charges are as on 01 April 2018.

**Applicable at bank branches in India. DD is free if you use HSBC internet banking. 25% of Rs.100 if you do it through HSBC phone banking.

***Location does not matter for senior citizens and pensioners.

**** Nil for students who have availed an education loan from PNB.

DD charges for some of the popular banks are mentioned here. If you are looking for a particular bank, visit the bank's official website.

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How are Demand Draft Charges Calculated?

Demand draft charges are usually calculated based on the amount being transferred. Most banks follow a slab-based fee structure. For example:

  1. Up to ₹5,000 – ₹25 to ₹30
  2. ₹5,001 to ₹10,000 – ₹35 to ₹45
  3. ₹10,001 to ₹1,00,000 – ₹3 to ₹5 per ₹1,000 (with a maximum cap)
  4. Above ₹1,00,000 – ₹4 to ₹6 per ₹1,000

Banks may also charge additional GST (18%) on top of these charges. Some banks apply flat charges while others use percentage-based fees.

Online vs Offline Demand Draft

Feature

Online DD

Offline DD

Availability

Through net banking (limited banks)

Visit to branch required

Charges

Sometimes discounted

Standard branch charges

Convenience

High

Low

Risk

Lower (tracked digitally)

Higher (physical loss/damage)

Conclusion: If available, online DDs are safer and may have lower charges. However, they are not universally offered by all banks.

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DD Charges vs NEFT/RTGS/IMPS

Mode

Charges

Speed

Online/Offline

Demand Draft (DD)

₹25 to ₹500+

1–3 days (physical clearing)

Mostly offline

NEFT

₹2.5 to ₹25 (capped)

2–4 hours

Online/Offline

RTGS

₹25 to ₹50

Instant (>₹2L only)

Online/Offline

IMPS

₹5 to ₹15

Instant

Online only

What is a Demand Draft and How Does it Work?

Unlike cheque payments, the bank cannot deny the payment due to insufficient funds when a DD is presented. This is because DD is a prepaid payment instrument and the Drawer would have paid for it already.

Check about Demand Draft
  1. Difference Between Demand Draft and Cheque
  2. Demand Draft Number
  3. Demand Draft Cancellation
  4. Demand Draft Clearance Time
  5. Demand Draft Forms
Check IFSC Code for Major Banks
  1. State Bank of India IFSC Code
  2. HDFC Bank IFSC Code
  3. Indian Bank IFSC Code
  4. Axis bank IFSC Code
  5. Canara bank IFSC Code
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FAQs on Demand Draft Charges

  • Can demand draft be made online?

    Yes, a demand draft can be made online.

  • Do all banks charge the same amount for making a demand draft?

    No, the amount charged for making a demand draft varies from bank to bank.

  • If I cancel the demand draft, will I be charged?

    Yes, you will be charged a minimum amount if you cancel the demand draft.

  • Will the person be paid once he/she submits the demand draft in the bank even though there are insufficient funds in the bank account?

    Yes, he/she will be paid as the drawer would have already paid the amount when making the demand draft. It needs to be mentioned here that the demand draft is a prepaid payment instrument.

  • Does SBI charge the same amount for making a demand draft, irrespective of the money?

    No, SBI doesn't charge the same amount. The amount charged varies depending on the amount for which the demand draft is being made by the drawer.

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