SBI Demand Draft - Form, Charges, Validity & How to Make Demand Draft in SBI Bank?

By Rucha Khedkar

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Updated on: Mar 27th, 2025

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8 min read

A Demand Draft (DD) is a secure financial instrument issued by the State Bank of India (SBI) to facilitate guaranteed payments. Unlike cheques, DDs do not depend on the drawer’s account balance. SBI demand drafts are ideal for transactions that require assured payments, such as fees for educational institutions, property purchases, and business dealings.

SBI Demand Draft

State Bank of India (SBI) Demand Draft (DD) is a secure financial instrument issued by SBI on behalf of a customer to facilitate guaranteed payments. When an SBI account holder requests a demand draft, they must deposit the specified amount with the bank, which then issues a pre-paid draft for the same amount.

Since SBI backs the payment, it eliminates the risk of bounced checks, making it a reliable payment option. The beneficiary—whether an individual or business—can deposit or encash the demand draft at any SBI branch or other banks where SBI demand drafts are accepted.

SBI Demand Draft Charges 2025

Given below are the applicable SBI demand draft charges:

Demand Draft Issue and Amount

Charges (Including GST)

Up to 5,000

25 

Between 5,000 and 10,000

50 

Between 10,000 and 1,00,000

₹5 per ₹1,000 (Minimum ₹60)

More than ₹1,00,000

₹4 per ₹1,000 (Minimum ₹600, Maximum ₹2,000)

IOI Demand Draft 

Same as domestic demand draft charges

Postage/Courier Charges

₹50 in addition to the above charges

Cancellation Charges

Up to ₹500: NIL

Between ₹500 and ₹5,000: ₹25 + GST

Between ₹5,000 and ₹10,000: ₹50 + GST

More than ₹10,000: ₹100 + GST

SBI Demand Draft Form PDF Download

Currently, this SBI demand draft form cannot be downloaded online. You must visit your nearest SBI branch and collect it.

SBI Demand Draft Validity Period

An SBI demand draft is valid for three months from the date of issuance. If not presented within this period, it becomes invalid but can be revalidated once by the drawer (the person who requested the draft). The revalidation fee is ₹200 plus GST.For SBI demand drafts, an expired demand draft can be revalidated only once. A revalidated demand draft cannot be revalidated again after an extended period.

SBI Demand Draft Limit

Here are all the limits of SBI demand drafts:

  • Cash Payments: As per Reserve Bank of India (RBI) guidelines, the maximum limit for a demand draft paid in cash is 49,999.
  • Cheque Payments: There is no maximum limit for demand drafts paid via cheque.

How to Generate SBI Demand Draft?

You can generate a demand draft through SBI using online or offline methods. Below are the detailed steps for each process:

SBI Online Demand Draft

  • Visit SBI’s official website and log in using your net banking credentials.
  • Go to the ‘Payments/Transfers’ tab, under ‘Other Payments/Receipt’, and select ‘Issue Demand Draft’.
  • Choose the account from which you want to pay for this particular demand draft. 
  • Enter your amount and beneficiary’s name (the person or entity to whom the DD is payable). Enter your branch code where this demand draft should be payable.
  • Decide whether you want to collect this demand draft from a branch or have it delivered by post.
  • Review all details and confirm your transaction. The bank will process and issue your demand draft accordingly.

SBI Offline Demand Draft

  • Go to your nearest SBI branch and approach your draft issuance counter.
  • Complete the demand draft application form with the following details: beneficiary’s name, payable branch/city, demand draft amount, bank charges, your name, and signature. 
  • Submit the completed form and the payment, either in cash (up to 49,999) or via cheque.
  • The bank will verify all this information and issue your demand draft immediately.

How to Fill SBI Demand Draft Form?

To fill out the SBI demand draft form, follow the steps below:

  • Enter your beneficiary’s name (a person or entity in whose favour this demand draft is to be issued).
  • Specify the city or branch where this demand draft can be cashed.
  • Mention the exact amount for the demand draft to be issued.
  • Include the applicable service charges per the bank’s guidelines for the amount.
  • Fill in the name of the person requesting the demand draft.
  • Provide the signature of the depositor (the person making the payment). Note that the depositor can be someone other than the applicant.

How to Cancel Demand Draft of SBI?

An SBI demand draft cannot be cancelled online; you must visit a branch in person. When you purchase a demand draft, the amount is immediately debited from your account. However, you can get a refund by cancelling the draft. When cancelling the demand draft from SBI, keep in mind the following:

  • SBI charges a cancellation fee. This fee varies based on the draft amount.
  • Recovering the amount can be challenging if you lose your demand draft. In such cases, consult a bank official immediately for guidance.

If Paid by Cash

You need documents such as the original demand draft (DD), the cash receipt issued at the time of purchase, and a completed demand draft cancellation application form (available at the bank). You must submit the documents to the bank to complete the process. The bank will refund the amount in cash after deducting a cancellation fee.

If Paid from Your Account

You must submit documents such as the original demand draft (DD), a completed demand draft cancellation form (available at the bank), and the demand draft cancellation application. To complete the process, submit the documents to your SBI branch. The bank will deduct a cancellation fee and process the refund to your account.

SBI Demand Draft Cancellation Application 

To cancel a demand draft, a drawer (a person who requested this draft) must submit a written application to the bank following this prescribed format. Following are all the key prerequisites you need for DD cancellation:

  • Cancellation Application: Your application must include details such as your bank’s name and address, DD amount, and the demand draft number SBI.
  • Supporting Documents: Attach your original payment receipt with your cancellation request.

SBI Demand Draft Cancellation Charges

The State Bank of India (SBI) Demand Draft cancellation charges vary based on the draft amount. 

Draft AmountCancellation Charges
Up to ₹500Nil
Above ₹500 to ₹5,000₹25 + GST
Above ₹5,000 to ₹10,000₹50 + GST
Above ₹10,000₹100 + GST

How to Prevent SBI Demand Draft Fraud?

Here are the these essential tips to prevent SBI demand draft frauds:

  • Record Drawer’s Details: Always note the complete details of the person who purchased the demand draft (the drawer), including their name and contact information.
  • Keep a Copy: Make a photocopy of the demand draft for your records, including all essential information such as the amount, beneficiary’s name, and reference number.
  • Report Suspicious Activity: If you notice anything unusual or suspicious, report it to the bank immediately. Taking timely action can help prevent potential fraud.
  • Use CTS 2010 Cheques: Customers should use CTS 2010 cheques as they are more secure and easy to read. These cheques come with enhanced security features that reduce the risk of fraud.
  • Proper Stamping of Cheques: Banks should ensure that cheque forms are stamped carefully. It’s important to conceal key details such as the date, payee’s name, amount, and signature.
  • Ensure Clear Scanning: All essential elements of a cheque or demand draft must be captured clearly during the scanning process. This clarity helps in easily detecting any fraudulent alterations.

Difference Between the SBI Demand Draft and Cheque

Following are all the essential differences between the SBI demand draft and the cheque:

Aspect

Cheques

Demand Drafts

Payment Process

A cheque is a written order from the drawer to their bank to pay a specific amount to the payee.

A demand draft is a pre-paid, bank-issued instrument that guarantees payment to the recipient.

Issuer

Issued by individuals, businesses, or other entities from their bank accounts.

Issued exclusively by banks on behalf of the customer.

Payment Guarantee

Payment is not guaranteed and can bounce if the drawer’s account has insufficient funds.

Payment is guaranteed as it is pre-paid and issued by the bank.

Payment Confirmation

Payment confirmation depends on the drawer’s account balance and can be pending until cleared.

Payment is confirmed before the draft is issued, ensuring funds are available.

Stopping Payment

The drawer can stop or cancel a cheque, subject to valid reasons (e.g., loss or error).

Once issued, a demand draft cannot be stopped or cancelled by the drawer.

Parties Involved

Involves three parties: drawer (issuer), drawee (bank), and payee (recipient).

Involves two parties: drawer (bank) and payee (recipient).

Additional Charges

Typically, no charge for issuing a cheque, but fees may apply for bounced cheques.

Banks charge a fee for issuing a demand draft, which may vary based on the amount.

Security and Risk

Riskier if not marked “account payee” as it can be cashed by anyone, increasing fraud potential.

Higher security as it can only be claimed by the designated payee, reducing the risk of unauthorised use.

Acceptance in Transactions

May face limited acceptance in business transactions due to concerns about bouncing.

Widely accepted in business transactions due to its guaranteed payment status and security.

Dependability

May lack reliability due to the possibility of bouncing or delays in clearance.

Highly reliable, offering swift, secure, and confirmed transactions, especially in digital banking.

SBI demand drafts provide a secure and reliable way for customers to transfer funds without the risk of counterfeiting or bounced payments. You can easily apply for a demand draft through SBI’s official internet banking portal or by visiting your nearest SBI branch at affordable costs. With nominal charges for issuance and cancellation, SBI demand drafts offer a convenient, cost-effective solution for securely sending and receiving funds.

Related Articles:
1. HDFC Demand Draft
2. How Long is a Bank DD Valid in India?
3. Difference Between Cheque and Demand Draft
4. HDFC Bank DD Charges and Cancellation Fees
5. ICICI Bank DD Charges and Cancellation Fees

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Frequently Asked Questions

What are the cancellation charges of demand draft in SBI?

The cancellation charges for an SBI demand draft range from ₹25 plus GST to ₹200 plus GST, depending on the amount of the draft.

Can I get my demand draft refunded to SBI Bank?

You can request a refund for your demand draft within the specified timeframe. However, the bank may deduct cancellation charges from the refunded amount.

Can a demand draft be cancelled after three months?

An SBI demand draft remains valid for three months from the date of issuance. After this period, it cannot be cancelled directly. To extend its validity, you must apply for revalidation at the bank.

Can I cancel my lost demand draft?

If your demand draft is lost, visit your nearest SBI branch with a copy of the draft or its reference number to initiate the cancellation process. It is advisable to keep a photocopy of your demand drafts for such situations.

How can I convert my DD to cash in SBI Bank?

To encash a demand draft, the recipient must present it at an SBI branch. The bank will verify the details and process the payment, allowing the amount to be encashed once confirmed. 

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