ICICI Bank provides the facility of issuing demand drafts to its account holders and non-customers. Account holders of ICICI Bank savings accounts can apply for ICICI Bank demand draft online and offline whereas non-existing customers have to visit the bank’s branch to issue the demand draft.
Features of ICICI Bank Demand Draft
- ICICI Bank demand drafts are payable on demand and offer a secure way of sending and receiving payments.
- Demand Drafts are hard to counterfeit and the drawer has to pay the bank first to issue a demand draft. This is another reason that most businesses and institutions prefer demand drafts over cheques as the chances of fraud and cheque dishonour percentage are high.
- In addition, a demand draft cannot be paid to the bearer but the receiver (payee) has to present the instrument to the bank.
- The bank often collects demand drafts through its clearing mechanisms, as well.
- Demand Drafts are a good way to receive payments when two parties are unknown to each other.
- A demand draft becomes useful in such situations, as it assures the payment with zero chance of non-payment and considerably lower chances of counterfeit than any other instrument.
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Types of ICICI Bank Demand Drafts
Demand Drafts issued by the different banks are more or less similar in terms of receiving payment. However, ICICI Bank demand drafts can be classified as per their mode of receiving payment:
- Sight Demand Draft: This demand draft is payable when the payee presents certain documents to the bank. The bank verifies those documents and pays the amount to the payee. The payment is denied if the documents are not appropriate or correct.
- Time Demand Draft: This type of Demand Draft is payable at a specific time. The time is mentioned at the time of creating the draft. The draft is not payable if the payee presents the draft to the bank before the specific time.
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ICICI Bank Demand Draft Form Online
Demand Drafts can be issued online as well. Nonetheless, the customers willing to avail this facility must have the internet banking service activated of their respective savings account. Moreover, the bank offers this service only at selected locations. You have to follow a set of instructions to issue ICICI Bank demand draft, which are listed below:
- Log in to your internet banking with the provided ID and password.
- Go to ‘Services’and select ‘Instabanking Services’.
- In the next step, you need to select ‘Request DD/PO’.
- Now, you just have to fill in all the required details.
- Now, you need to fill in details like the account from which the amount is to be debited, name of the account holder, payee’s name, DD for Rs., location of the payee, cheque number, cheque date, and your mobile number. Then, click on ‘Submit’.
- Once you have paid the amount, you will receive a transaction reference number and DD details. Print the page and keep it for the bank’s reference.
Note: Demand draft charges will apply. You need to present the original cheque duly filled at the branch counter. Also, the transactions need to be conducted during banking hours since respective branch charges are applicable.
ICICI Bank Demand Draft Offline
If the customers are wanting to request DD offline, then the customers will have to walk into any branch of the bank and make a demand draft by filling up the demand draft form. Click here to download the ICICI Bank Demand Draft form online.
How to Cancel ICICI Bank Demand Draft
There may be instances when you need to cancel a demand draft. However, when you create a DD, you have already paid for it. To cancel your DD and get your money back, you have to visit the bank and request the same by filling out a cancellation form. At present, no Indian bank provides the service for online DD cancellation. There can be two situations based on how you paid the amount:
- Cash: You have to submit the original DD and the cash payment receipt. The amount will be refunded in cash to you immediately after deducting the cancellation charges.
- Bank Account Transfer: You have to submit the original DD along with cancellation form. The amount (less cancellation charges) will be credited back to your account.
If you do not have the original DD with you anymore, the process of cancelling or obtaining a refund requires you to sign an indemnity bond for the bank. After this, most banks refund your amount (after deducting cancellation fees) within a week. Some banks process the refund only after the DD’s expiry date.
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ICICI Bank Demand Draft Charges
ICICI Bank DD charges depend on the payment mode and DD amount. This information is tabulated here for you.
| Type of Demand Draft Issue | Charges |
| Demand Draft Issuance |
Up to Rs. 10,000 = Rs. 50 per DD, Rs. 5 per thousand rupees or part thereof for DD of more than Rs. 10,000 (Min. of Rs. 75 and Max. of Rs. 15,000) For Senior Citizens, Students, Rural locations = Up to Rs. 10,000 = Rs. 40 Above Rs. 10,000 till Rs. 50,000 = Rs. 60 Above Rs. 50,000 = Rs. 5 per thousand rupees or part thereof (Max. Rs. 15,000) |
| DD Issue by Cash | Rs. 5 per Rs. 1,000 or part thereof (Min. Rs. 100 and Max. Rs. 15,000) |
| DD Cancellation/Duplicate/Re-validation |
Up to Rs. 200 = NIL Above Rs. 200 = Rs. 100 |
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Difference Between ICICI Bank Cheque and Demand Draft
- A DD is issued by the bank whereas cheques are written by individuals.
- A DD is drawn by the bank, while cheques are drawn by the bank’s customer.
- DD is a prepaid instrument. Hence, the payment cannot fail due to lack of funds. On the other hand, a cheque may “bounce” if the account has insufficient balance.
- ICICI Bank is the party involved in the actual payment of the DD. Cheques involve different individuals.
- Without the signature of the payee, the amount mentioned on the cheque cannot be transferred. However, you can transfer the funds through an ICICI Bank DD even without the signature.
- Banks do not ask for any charges payments through cheques but charge a nominal fee to issue a DD.
ICICI Bank Foreign Currency Demand Draft
ICICI Bank offers foreign currency demand drafts to be drawn in the favour of the beneficiary. You can now send foreign currency demand draft to the beneficiary who will receive the money upon banking the draft into his/her account in a foreign country.
Features of Foreign Currency Demand Draft
- The draft costs Rs. 500 plus applicable tax.
- The draft can be drawn up to any amount. The limit is prescribed by FEMA. You can check on ICICI Bank’s website to know about limits in detail.
- Exchange rates for transactions are provided by ICICI Bank.
- Foreign currency demand drafts are issued by ICICI Bank in currencies – USD, GBP, SGD, EURO, CAD, and AUD.
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ICICI Bank Demand Draft FAQs
Q. How long does it take to issue a demand draft in ICICI Bank?
Ans. ICICI Bank takes 3 to 5 minutes to issue a demand draft.
Q. What is the validity of demand draft in ICICI Bank?
Ans. A demand draft is valid for three months from the date of issuance.
Q. Can anybody else encash the demand draft on my behalf in ICICI Bank?
Ans. A demand draft can only be encashed by the person to whom it has to be payable. No other person can encash the demand draft on your behalf.
Q. Can I decline the issued demand draft in ICICI Bank?
Ans. A demand draft is an irrevocable instrument, once issued cannot be declined.
Q. What will happen if I fail to encash money from demand draft?
Ans. If you fail to encash a demand draft and it has expired, you will have to write an application to the bank to re-validate it.