A demand draft is a negotiable instrument that assists in initiating a bank transfer that does not require a signature. It is a prepaid instrument, and its payment cannot be stopped in any event of fraud or misintended recipient. DD is issued by the bank that guarantees the payment of a specific amount of money to the specified payee.
The drawer is the person requesting the demand draft, the bank paying the money is the drawee and the party receiving the money is the payee. Here, the bank (drawee) issues a demand draft to a client (drawer) to pay the specified amount of money to the specified person (payee).
Features of Axis Bank Demand Draft
Mentioned below are some of the features of the Axis Bank Demand Draft:
-
- It is payable on demand.
- There is no stamp on DD.
- It can be negotiated on endorsement and delivery.
- It cannot be paid to the bearer.
- It cannot be stopped except for the order of the court.
- In case the DD is not delivered, the amount gets refunded.
- The purchaser of the DD doesn’t need to be a customer of the bank.
Axis Bank Demand Draft Details
Mentioned below are the different items that an Axis Bank Demand Draft contains:
| Items in DD | Field Details |
| Bank Branch | The branch of the bank issuing the DD |
| To Pay | Details of the Payee |
| Date | Date of issue of DD (valid period is three months from this date) |
| Amount (in words) | The amount payable to the drawee in figures |
| DD number | A unique number is assigned to the DD |
| Signature | Signatures of the officers of the bank branch issuing DD |
Till the time Internet Banking, Mobile Banking, and Credit Cards were not so popular, customers used to make loans and other payments with the help of DD. The risks associated with the Demand Draft are quite less as compared to that of cheques. Due to this reason only DD is always preferred over cheques. But there are still some risks involved, let us discuss them:
- A Demand Draft may be forged or stolen.
- In case the drawee does not deposit the DD on time, it may become invalid.
- The drawer might have incurred a mistake while getting the DD.
- The banks issuing the DD may go out of business before the DD is deposited and cleared.
Axis Bank Demand Draft Charges
Mentioned below are the charges levied by Axis Bank on Demand Drafts:
| Demand Draft | Charges |
| Issue (Payable at Axis Bank Locations) |
|
| Issue (Payable at Correspondent Bank Locations under Desk Drawing Arrangement) | INR 1.00 per thousand; Minimum INR 25 per DD |
| Cancellation (Drawn on our Bank) | INR 75 per Demand Draft |
| Cancellation (Drawn on Correspondent Bank) | Other Bank Charges plus INR 125 per Demand Draft |
| Revalidation (Drawn on our Bank) | INR 50 per Demand Draft |
| Revalidation (Drawn on our Correspondent Bank) | Other Bank Charges plus INR 125 per Demand Draft |
| Duplicate Issuance (Drawn on our Bank) | INR 50 per Demand Draft |
| Duplicate Issuance (Drawn on our Correspondent Bank) | Other Bank Charges plus INR 100 per Demand Draft |
Demand Draft Form
Mentioned below are the contents of the Axis Bank demand Draft Form which is required to be filled out to get a DD issued by a bank:
- Name and Address of the drawer (your name)
- Name of the drawee
- Name and address of the payee
- Name of the city where DD is payable
- Amount payable to the drawee (in words)
- Amount payable to the drawee (in figures)
- Exchange (fee charged by the bank)
- Total amount payable by the drawer to the bank (in figures)
- Signature of the drawer
- Name and Address of the drawer
Types of Axis Bank Demand Draft
Mentioned below are the types of Axis Bank Demand Drafts:
-
Sight Demand Draft:
The Sight Demand Drafts are considered to be payable when some documents are presented. In case the receiver is not able to provide the documents specified, then he/she will not be getting money out of the demand draft.
-
Time Demand Draft:
Time Demand Draft is billed exactly at a specified time i.e. before the specified time, the DD cannot be billed from the bank.
How to get Axis Bank Demand Draft Online?
Mentioned below are the steps to get the Axis Bank Demand Draft Online:
Step 1: Visit the official website of Axis Bank and enter your Login ID and password. Step 2: Click on “Services” on the upper menu of the app.
Step 3: From the Menu, click on ‘Request For’ and then click on ‘Demand Draft’.
Step 4: Select the bank account from which the amount is to be debited.
Step 5: Enter the amount for which the Demand Draft is to be made.
Step 6: Add the name of the beneficiary and, the city where the DD should be payable. Select the dispatch mode to be either bank or courier.
Step 7: Click on “Proceed”.
Step 8: Once the DD is generated, it will then be dispatched.
How to get Axis Bank Demand Draft Offline?
In case the customer wants to get the Axis Bank Demand Draft physically, he can do so by visiting the nearest branch, and filling out the Demand Draft Form. Once the DD is processed one can get the Axis Bank Passbook updated to track the transactions.
Benefits of a Demand Draft
Mentioned below are the benefits of a Demand Draft:
- DD is guaranteed by the bank i.e. the payee gets the guarantee for the funds.
- It is a very convenient mode for funds transfer, especially in case of huge amounts. There is no capping on the amount of fund transfer and it doesn’t need any information related to payee.
- It can also be used for cross-border purchases and investments.
Drawback of a Demand Draft
Mentioned below are the drawbacks of a Demand Draft:
- It cannot be cancelled once delivered to the payee as it represents the transaction that already took place.
- The bank is not responsible for replacing the lost money in case the DD gets stolen, lost, or altered and the funds are cashed by the wrong person.
- The Demand Draft Validity is for 3 months. The payee will be at a loss of funds if it is not encashed within this period.
