Jump to navigation Jump to search A specimen demand draft. A demand draft is a negotiable instrument similar to a bill of exchange.
SBI Up to Rs. The amount you give to issue a draft is immediately accepted by the bank whether it is cash or cheque and Dimand draft have to go to the bank to cancel a DD as there is no online provision for it.
As per the payment methods, there may be two cases in which you have to cancel the DD. You Paid Through Cash: You have to submit the original draft along with the receipt to the bank to get the refund. The bank will deduct around Rs. You Paid Through Cheque: If you paid the amount through cheque and the amount is deducted from your bank account, you need to submit the original draft with a duly filled cancellation form and the amount will be credited back to your account with a deduction of Rs.
In any case, you might land in trouble if you have lost the DD or missed it in the postal service. This is because the bank will ask for a proof of issuing the instrument. However, with some request and cooperation of the bank, you may find the copy of the draft receipt in the bank and precede the cancellation.
What to do if Demand Draft is Expired? A draft is valid for a period of 3 months from the date Dimand draft issue. The draft will be expired after that period if not presented to the bank. The drawer then has to approach the bank to revalidate the draft. Here one thing should be noticed that the payee or any other person cannot approach the bank in any condition to revalidate the DD.
The bank verifies the original details before revalidating the draft and extends its usability for another 3 months.
However, a revalidated draft cannot be revalidated further. What is a Demand Draft Fraud? Despite being one of safest mediums of money transfer, demand draft fraud is a common practice.
Misuse of digital information and easy availability of sophisticated equipment is also a possible reason for such crimes. A demand draft fraud is a scenario when someone issues a fake DD in the name of the payee.
In such situations, it becomes harder to track down the person who issued the draft from the bank and the payee has to face legal hassles. This might land someone in serious troubles and thus it is important to follow a set of simple set of rules to avoid and deal with such fraud. Keep Proper Information of the Drawer: Always extract proper contact information of the drawer and do not forget to verify it.
This is not a full proof step but it will help you narrow down your area of search and track down the fraudster. Keep proper details of your conversation or deal with the drawer so that you always remain out of the circle of doubt. Always Keep a Copy of the Draft: Make a coloured photocopy of the draft and keep it safe.
This will help you identify the methods used in forging the draft especially in situations where the draft carries a significant amount with them. Take Legal Action Immediately: Banks usually take legal action immediately against the payee when presented a fake draft.
This is because they are bound by rules and their actions are directed towards avoiding any mishap. Launch a counter FIR and take serious legal advice as you have to fight on three fronts now. One is to face the legal procedure, the second is to track down the fraudster and third is to try and recover your loss.
In addition, contacting the drawer branch is also a good idea as they can provide you vital information about the drawer such as CCTV footage, contact information, etc.
Demand draft and cheque look quite similar but not many people understand the difference between them. The table below can help in understanding the distinction between both. Basis of Difference Cheque Meaning This a negotiable instrument for transferring money to a specific person and at a specific place.
It can be issued for the local region or for another city. A cheque is also called a payment order, given specifically to a person.
Earlier, it used to be place specific but now with Multi-city Chequebooks, it can be encashed wherever the payee wants. It can be cleared at any branch of the same city. Purpose To transfer money from one place to another safely Making payments in an easy way Issuance Issued by the bank itself Issued by the customers of the bank Bank Charges.Person or party that wrote the draft is called a drawer; the person, party, or bank who is expected to pay it (on whom it is drawn) is called a 'drawee' or a 'payer,' and the person or party who receives the payment is called a 'payee.' A check is a demand draft drawn on a bank.
On the cheque, you have to write the name of the bank and the amount.
Now, go to the bank and ask for the form for Demand Draft. Fill the form up. Demand draft fraud, or the unauthorized debiting of a consumer’s checking account, is a growing problem. Currently, it is the favorite method of fraudulent actors for taking consumers’ money through fraudulent telemarketing and other scams.
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A demand draft or a DD is a negotiable instrument issued by the bank. The meaning of negotiable instrument is that it guarantees a certain amount of payment mentioning the name of the payee. It cannot be transferred to another person in any situation.
The bank issues the draft to a client (drawer.