- How long does DD take to clear?
- What is the validity period of DD?
- Can DD be Cancelled if lost?
- What is the difference between DD and Cheque?
- Can a demand draft bounce?
- Is DD safe?
- Can we write on back side of DD?
- What happens if DD is not used?
- Can we write behind demand draft?
- Can I cancel DD in any branch?
- Can DD be encashed in any bank?
- How does DD Work?
How long does DD take to clear?
While a cheque takes a specified time of a day or two to get cleared, the same cannot be said for the demand draft.
There are no codified rules as to how long the banks have to take in clearing the DD, which is why the time taken by each bank varies.
Ideally, it takes two business days for a demand draft to be cleared..
What is the validity period of DD?
Revised validity period of Cheques, Drafts, Pay Orders & Banker’s Cheques. As per RBI guidelines, with effect from April 1, 2012, the validity period of Cheques, Demand Drafts, Pay Orders and Banker’s Cheques will be reduced from 6 months to 3 months, from the date of issue of the instrument.
Can DD be Cancelled if lost?
However, if the draft has been lost, stolen or destroyed, the buyer may be able to cancel the draft by returning to his bank, explaining that the draft is irretrievable by either himself or the seller, and presenting to the bank the reference number or a printed copy of the draft.
What is the difference between DD and Cheque?
Here are few other differences between cheque and DD:The cheque is issued by the customer, whereas Demand draft is issued by the bank. … Payment of cheque can be stopped by the drawee, whereas payment cannot be stopped in DD. A cheque can be paid to bearer or order. While DD is paid to a person on order.
Can a demand draft bounce?
A demand draft is a negotiable instrument where the amount is paid before the DD is issued by the bank, hence, the DD is secure and cannot bounce as a cheque could.
Is DD safe?
As we all know, a DD is much safer and certain method of payment compared with cheques. In case of cheques, an individual is the drawer and hence the cheque can be dishonoured by the drawee bank due to various reasons, like insufficient funds. … One the bank employee failed to distinguish between a cheque and a DD.
Can we write on back side of DD?
Yes. It can create problem with your draft becoming invalid. You just attach the draft and keep a copy of it for your record.
What happens if DD is not used?
If the demand draft has expired and has not been encashed by the payee, the amount is not automatically credited back into your account. … The bank will re-validate the draft, which is again valid for 3 months, and then you can cancel with the process mentioned above, or you could use the DD again to transfer funds.
Can we write behind demand draft?
Yes u must write ur name, File no. , DOB, address on the back of ur DD.
Can I cancel DD in any branch?
A Demand Draft can only be cancelled by the Purchaser of the DD and no other one will be having the right to cancel and get the refund. The purchaser of the DD must write a request letter to the Banker in which he had drawn the DD. … And the DD can not be cancelled by the Other Branches of the Bank.
Can DD be encashed in any bank?
Crossed Demand Draft In case the Demand Draft is Crossed as Account Payee, it cannot be encashed over the counter from the Bank Branch and can only be cleared by depositing in the Bank Account of the Person in whose favor the DD has been made.
How does DD Work?
When a bank prepares a demand draft, the amount of the draft is taken from the account of the customer requesting the draft and is transferred to an account at another bank. The drawer is the person requesting the demand draft; the bank paying the money is the drawee; the party receiving the money is the payee.