In this article, we’re explaining how to make a demand draft – which is a form of payment issued by a financial institution.
This is part of our free series on banking in India, covering topics like opening an NRI bank account, which you can access here.
Feel free to use the table of contents to jump ahead to the sections most relevant to you.
Table of Contents
To make a demand draft you need to visit a financial institution and request a demand draft from the teller. Demand drafts are a form of payment that are guaranteed by a financial institution, so the individual purchasing the draft will pay for the balance up front.
With this in mind, demand drafts are considered a secure payment form, as they are pre-paid. So they are commonly used in instances where secure payment is required. This can include government related projects, educational institutions, and various services.
In addition to banks, you can also get drafts at certain cooperative banks and post offices. That said, the most common place to obtain a draft is from a scheduled bank.
As for depositing a draft, the recipient can directly deposit it into their account or exchange it for cash. If you decide to deposit the draft into your account, the process tends to be faster than depositing cheques.
In order to obtain demand drafts, most banks will require you to complete an order (or application) form. This will include the necessary information about the individual requesting the draft and the intended recipient of the draft.
Additionally, banks will require the individual requesting the demand draft to provide a copy of government issued identification. Also, if you are requesting a draft at a financial institution where you do not have an account, you should have proof of address.
Here is a closer look at the documents and information required to obtain a draft.
Of course, after providing all of the necessary documents you will also need to provide the total payment amount to the bank.
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Below are three of the most common questions that we receive from people asking about how to make a draft. If you have further questions you would like answered, don’t hesitate to get in touch with us directly.
Yes, you can make a demand draft from most banks. However, not all banks offer this service. For this reason, it is generally best to make demand drafts at a bank where you have an existing bank account.
You can make a demand draft online if your financial institution offers this service. To do so, you will need to log into your online banking platform and navigate to the menu item related to requesting a demand draft. Next you will need to follow the instructions and provide the necessary information. Your online bank account will pay for the draft.
The process to make a demand draft starts with visiting a bank and requesting an application for a draft. The application will include all of the necessary information in order to make the draft, including details about the issuer and the recipient. After completion, you will pay for the draft.
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