How to Obtain a Demand Draft (DD) Over 1 Lakh from a Nationalized Bank in India
Obtaining a demand draft (DD) for an amount over 1 lakh from a nationalized bank in India is a straightforward process, though it does require some adherence to specific procedures to ensure compliance and transparency. Below are the detailed steps to follow:
1. Visit the Bank Branch
The first step is to visit the nearest branch of the nationalized bank where you hold an account. It's important to choose a branch closest to you for convenience and to avoid any potential delays in processing your request.
2. Fill Out the Application Form
Once at the bank, request a demand draft application form. This form requires you to provide specific details:
Amount of the DD
Name of the beneficiary
Beneficiary's bank details if applicable
Your account number
Ensure that you fill out the form meticulously and provide accurate information to avoid any delays or issues during processing.
3. Provide Identification
To validate your identity, you'll need to present valid identification documents, such as:
Aadhar card
PAN card
Passport
Voter ID
Carry both the original document and a photocopy for quicker verification. It's advisable to have all required documents ready before you begin your visit to the bank.
4. Funds Availability
Verify that you have sufficient balance in your account to cover the amount of the DD plus any applicable fees. This ensures that your request is feasible and the DD can be issued without any inconvenience.
5. Payment of Fees
There will be an applicable charge for issuing the demand draft. The fee varies based on the amount and varies by bank policies. Ensure you understand the fee structure and make the necessary payment before proceeding.
6. Signature Verification
The bank may verify your signature against the one on file to ensure the authenticity of your request. This step is crucial to prevent any fraudulent activities and to safeguard your finances.
7. Issuance of Demand Draft
Once all the aforementioned steps are completed and verified, the bank will process your request, and the demand draft will be issued. You will receive the DD along with a receipt, which is a proof of the transaction.
8. Collecting the DD
Collect the demand draft from the bank's counter. Verify the details on the DD for accuracy before leaving the bank.
Important Notes
Limits and Policies: Some banks may have specific policies regarding the issuance of demand drafts above a certain limit. It's advisable to check with the bank beforehand to avoid any surprises or delays.
Online Services: Some banks now offer online services for demand drafts. However, for large amounts, you may still need to present yourself in person for verification purposes.
Processing Time: Demand drafts are usually processed on the same day if the request is made during banking hours. Always check with your specific bank for any variations in the process or additional requirements.
Draft Commission: When issuing a cheque for the amount of Rs. 1 lakh and a draft commission for buying the demand draft, always ensure that the bank clearly details the charges and any potential additional fees.