DD Expiry Calculator

Demand Draft Expiry Calculator

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What is a Demand Draft?

A Demand Draft (DD) is a prepaid negotiable instrument issued by a bank that allows a person to send money to another person or organization securely. Unlike cheques, a demand draft is paid in advance—so there’s no risk of it bouncing due to insufficient funds.

It is often used when a safe, guaranteed payment is needed, such as for college fees, government payments, application forms, or official transactions.

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🛠️ How Does a Demand Draft Work?

Here’s how it works:

The payer (also called the drawer) visits a bank and pays the required amount (cash or debit from their account).
The bank then issues a Demand Draft in favor of the payee (the recipient).
The payee deposits the DD in their bank account, and the funds are credited once cleared.
Since the amount is already paid upfront, there’s no risk of default.

🧾 How to Create a Demand Draft?

Creating a demand draft is simple. You can do it through:

1. Offline (at Bank Branch)

Visit your bank branch.
Fill in the Demand Draft form with details like payee name, amount, and branch location.
Pay the DD amount along with applicable charges.
Collect the DD slip and receipt.

2. Online (via Net Banking)

Log in to your bank’s internet banking portal.
Look for the “Request Demand Draft” option.
Fill in required details (amount, payee name, delivery branch, etc.).
Authorize payment and submit.
The DD will be delivered to your address or can be collected from the branch.

📅 What is the Validity or Expiry of a Demand Draft?

As per Reserve Bank of India (RBI) guidelines, a demand draft is valid for 3 months from the date of issue. After this period, it expires and cannot be encashed.

That’s where our Demand Draft Expiry Date Calculator comes in handy—just enter the DD issue date, and the tool will tell you the exact expiry date.

🧠 Why is a Demand Draft Important?

✅ Secure Payment – It cannot bounce like cheques.
✅ Widely Accepted – Used for school fees, government applications, etc.
✅ No Bank Account Needed – You can pay in cash to create a DD.
✅ Traceable – Easy to track and cancel if lost.
✅ Legally Binding – Offers proof of payment to the payee.

🧮 Use Our Demand Draft Expiry Date Calculator

Don’t want to manually calculate the expiry?
Use our free Demand Draft Expiry Date Calculator Tool to know the last valid date for encashing your DD. Just enter the date of issue, and we’ll calculate the expiry date instantly.

✅ Can an Expired DD Be Revalidated? How?

Yes, an expired Demand Draft can be revalidated. You need to visit the issuing bank and request revalidation. Here’s how:

Submit a written application to the bank.
Attach the original DD.
Provide identity proof (if required).
If approved, the bank will revalidate the DD with a new date.

Note: Banks may refuse revalidation if the DD is too old or conditions are not met.

❌ What Happens if a Deamd Draft Expires?

If a Demand Draft expires (after 3 months from the issue date), it cannot be encashed. The amount is not lost, but the payee must request:

Revalidation by the drawer, or
The drawer must apply for cancellation and get a refund.

🏦 RBI Guidelines on DD Validity

As per RBI circular (RBI/2011-12/251), effective from April 1, 2012, the validity of all Demand Drafts is 3 months from the date of issue.

⚙️ How Does a Demand Draft Work?

Drawer (payer) requests a DD from a bank by paying upfront.
The bank issues a prepaid DD in favor of the payee.
Payee deposits the DD into their bank.
Amount is transferred from issuing bank to the payee’s bank upon clearing.

Since the amount is already paid, there’s no risk of insufficient funds.

🔑 Key Features/Elements of a DD

Prepaid: Amount is paid in advance.
Non-negotiable by drawer: Cannot be canceled by drawer once issued without bank approval.
Payable on demand: Funds are paid upon presentation.
Safer than cheques: Cannot bounce due to lack of funds.
Includes: Amount, Payee Name, Issuing Branch, DD Number, Date.

🔍 Difference Between Cheque and Demand Draft

Feature	Cheque	Demand Draft
Issued by	Account holder	Bank
Payment mode	Postpaid	Prepaid
Bounce risk	Yes, if insufficient funds	No
Signature required	Yes	No (bank-issued)
Safety	Less secure	More secure

🛡️ Which Is Safer: DD or Cheque?

Demand Draft is safer because the money is prepaid and guaranteed by the bank. Cheques can bounce if there’s insufficient balance, but DDs cannot bounce.

⚠️ Can a DD Bounce? Can a Cheque Bounce?

Demand Draft: ❌ Cannot bounce. Amount is already with the bank.
Cheque: ✅ Can bounce if the drawer’s account has insufficient funds or there’s a signature mismatch.

📄 Documents Required for Demand Draft

ID proof (if paid in cash above ₹50,000)
PAN Card (for amounts above ₹50,000)
Filled DD Application Form
Bank account details (if paying from account)

💵 Can I Get a DD With Cash?

Yes, you can get a DD using cash up to ₹49,999. For ₹50,000 or more, the payment must be made via cheque or debit from your bank account, and PAN card is mandatory.

💰 What Are the Charges for Issuing a Demand Draft?

Charges vary by bank but usually depend on the DD amount:

₹0 – ₹5,000: ₹25 – ₹35
₹5,001 – ₹10,000: ₹40 – ₹60
Above ₹10,000: ₹3 – ₹5 per ₹1,000 (capped)

❌ DD Cancellation Charges

Most banks charge ₹100 to ₹250 for DD cancellation. You need to:

Submit a cancellation form.
Attach the original DD.
Provide ID and proof of payment.

🏦 Bank-Specific DD Charges

Here’s a quick look at common banks:

🔹 SBI Demand Draft Charges

₹0–₹5,000: ₹25
₹5,001–₹10,000: ₹50
₹10,001–₹1,00,000: ₹5 per ₹1,000 (min ₹60)
Cancellation: ₹100 + GST

🔹 HDFC DD Charges

₹0–₹10,000: ₹30
₹10,001–₹1,00,000: ₹3 per ₹1,000
Cancellation: ₹100 + taxes

🔹 ICICI Bank DD Charges

₹0–₹10,000: ₹30
₹10,001–₹1,00,000: ₹4 per ₹1,000
Cancellation: ₹150 + GST

(Note: Charges may vary. Always check the official bank site for latest fees.)

🔙 How to Cancel a Demand Draft?

Visit the issuing bank.
Submit a written application with the original DD.
Provide ID proof and transaction receipt.
Pay the cancellation fee.

⛔ Can a DD Be Stopped/Cancelled After Issuance?

Once issued, a DD cannot be stopped like a cheque. However, it can be cancelled only if:

It’s not yet encashed, and
The drawer makes a cancellation request to the bank.

💳 How to Encash a Demand Draft?

If you are the payee, you can:

Deposit the DD in your bank account.
The bank will send it for clearing.
Funds will be credited once the DD is cleared.

⌛ How Long Does a DD Take to Clear?

A Demand Draft typically takes 1 to 3 working days to clear, depending on:

The location of the bank branches
Whether it’s local or outstation

🧾 What to Do If a Demand Draft is Lost or Stolen?

Immediately inform the issuing bank in writing.
Provide details like DD number, amount, and payee.
Request duplicate DD or cancellation.
The bank may require an FIR or indemnity bond.

🔄 Sight Demand Draft vs. Time Demand Draft

Type	Description
Sight Demand Draft	Payable immediately on presentation. Most common type.
Time Demand Draft	Payable after a specific period, like 30 or 60 days.

🌍 What is Foreign Currency Demand Draft (FCDD)?

A Foreign Currency Demand Draft (FCDD) is a DD issued in foreign currency (like USD, EUR, GBP) instead of INR. It’s used for:

University application fees abroad
Business payments
Foreign donations

Issued by authorized Indian banks and processed via correspondent foreign banks.

📌 Frequently Asked Questions (FAQs)

Q1. Can a demand draft be revalidated after expiry?
Yes, you can request your bank to revalidate an expired DD, but it’s at their discretion and subject to verification.

Q2. Can I cancel a DD?
Yes. If it hasn’t been encashed, the drawer can cancel it and get the refund after submitting a written request.

Q3. What are the charges for making a demand draft?
Charges vary by bank but typically include a small commission fee based on the amount of the DD.