Indian Bank DD Charges

Indian Bank DD charges

DD charges are convenience fees taken by almost all the financial institutions to provide the demand draft facility to their customers. In this article, you will learn about what are the DD charges of Indian banks. But before jumping deeper into it. Do you know what precisely the DD (Demand Draft) charges are? Why do the banks take it?

What Is DD Charges?

Demand draft is special charges taken by Indian bank as a convenience fee to provide the unique facility of making payment through demand draft. This type of payment may be required while taking admission in any college, university, or applying for a government job.

How To Take A DD In The Indian Bank?

There is no particular protocol to take a DD form. You can easily visit the branch and ask the bank representative about the DD. They will provide you with a piece of paper or banking document where you mention the date, branch name, beneficiary institution name, account number and your signature. 

Finally, you mention some amount you want to make DD and deposit it to the bank. The bank takes some convenience charge, and the said amount reaches the beneficiary account immediately. 

Also Read: What are Bulk Charges in Indian Bank?

DD Charges In Indian Bank

The DD charges in Indian Banks vary on many factors whether you are a student, older man, pensioner, or belong to any particular category.

  • Indian banks charge a minimum of 20 rupees and a maximum of 350 rupees for making payments upto one lac rupees for an individual. The charges are usually 3.50 INR on every 1000 INR. however, for special people like pensioners or senior citizens, the maximum cap is only 250 rupees instead of 350/-
  • If you make a payment above one lac rupees, then the bank charges 4 INR per thousand rupees. These charges range between a minimum of 400 to a maximum of 15,000. However, again In the case of senior citizens and pensioners, the upper cap is only 12,000. This means they get a 3000 INR discount.

Let’s see how the Demand draft charges are calculated.

Each financial institution may take different charges on the demand draft. Let’s take an example of the Indian bank to understand the basic charge on making payment through demand draft.

For instance, you have to make a DD of 12,000 rupees. And the bank charges the convenience fee on DD is 4 INR on every 1000 rupees. 

So, the calculation is simple.

First, calculate the DD charge on the first 1000 rupees.

It’s 4/1000= 0.004 INR

Now, calculate the DD charge for 12,000 rupees.

Since the DD fee of 1000 is 0.004, 

Therefore, DD fee on 12,000rupees= 12000×0.004=48 INR.

Similarly, if the DD charge on Rs. 24,000 will be 24000x 0.004 = Rs. 96 rupees.

Making payment through Demand draft is even more convenient as the bankers make it. So, it is a more trustable mode of payment. However, as you have seen the example. A financial institution like the Indian bank takes a nominal charge to facilitate the payment method of demand draft.


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