A demand draft (DD) is a pre-paid payment order issued by a bank, directing another branch or bank to pay a specified amount to the named payee. Because the funds are collected from the applicant at the time of issuance, a DD cannot bounce, making it one of the most reliable payment instruments for high-value transactions in India, such as university admissions, government fees, court payments and property registrations. Filling the format incorrectly can lead to rejection by the receiving institution, so every field matters.
What is the format of a demand draft?
A standard DD has two sections: the main instrument that the payee presents to the bank and the counterfoil (stub) that the applicant retains as proof. The fields in a typical DD format are as follows:
|
Field |
What to enter |
Notes |
|
Date |
DD/MM/YYYY of issue |
Must match the bank's system date |
|
Payable to |
Full name of the beneficiary (individual or institution) |
Must match the name on the receiving institution's records |
|
Payable at |
City or branch where the DD will be encashed |
Write clearly; some banks print this automatically |
|
Amount in figures |
e.g., ₹50,000 |
No overwriting permitted |
|
Amount in words |
e.g., Fifty Thousand Rupees Only |
Cross-check against figures; discrepancy causes rejection |
|
DD number |
Pre-printed serial number on the instrument |
Used for tracking and stop-payment requests |
|
Issuing branch |
Name and IFSC of the branch issuing the DD |
Printed or stamped by the bank |
|
Authorised signatures |
Two authorised signatories of the issuing branch |
Both signatures are required for the DD to be valid |
|
Applicant details (counterfoil) |
Name, account number and contact number of the purchaser |
Retained by the bank or given to the applicant as a receipt |
What is the standard structure of a demand draft?
The following is a representative layout of a DD as issued by an Indian bank. Actual designs vary by bank, but the fields remain consistent.
|
DEMAND DRAFT |
|
|
DD No.: DD-2024-001234 |
Date: 26/05/2026 |
|
Pay to: University of Delhi |
|
|
Payable at: New Delhi |
|
|
Amount (Figures): ₹25,500 |
Amount (Words): Twenty-Five Thousand Five Hundred Rupees Only |
|
Issuing Branch: SBI, Connaught Place, New Delhi |
IFSC: SBIN0001234 |
|
Authorised Signatory 1: [Signature] |
Authorised Signatory 2: [Signature] |
How to fill a demand draft application form
Before a bank issues a DD, you complete an application form at the branch counter or, in some banks, online. The steps below apply to the in-branch process used by most public and private sector banks in India.
- Visit your nearest bank branch and collect the DD application form from the counter. Some banks, such as SBI and HDFC Bank, also allow DD requests through net banking.
- Enter the payee name exactly as required by the receiving institution. A mismatch between the DD name and the institution's records is the most common reason for rejection.
- Write the amount in figures in the designated box. Use the Indian numbering format (e.g., ₹1,50,000, not ₹150,000) if required by the form.
- Write the amount in words clearly. End with the word "Only" (e.g., "One Lakh Fifty Thousand Rupees Only").
- Specify the city where the DD will be encashed in the "Payable at" field.
- Fill in your own name, account number and mobile number in the applicant section. If you are paying by cash, carry a valid photo ID.
- Submit the form along with the payment (by cheque, account debit or cash) and the applicable DD issuance charges. Charges vary by bank and amount; as a reference, SBI charges ₹25–₹75 for DDs up to ₹5 lakh.
- Collect the DD and the counterfoil receipt. Verify all printed details before leaving the branch. Errors corrected after leaving require a formal cancellation and reissuance, which takes time and incurs additional charges.
Conclusion
A DD remains a trusted payment instrument for transactions where the receiving party needs a guarantee of funds, particularly for government offices, educational institutions and courts. Getting the format right the first time avoids delays, reissuance charges and the risk of missing a deadline. Once funds are collected and transactions recorded, maintaining accurate books becomes equally important.
TallyPrime simplifies receipt tracking, bank reconciliation and financial reporting, so your records stay current from the moment a DD is issued to the moment it is encashed.
