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Demand draft – MICR code and other numbers

Demand draft in the Indian context is essentially a written order, where a buyer pre-deposits certain amount of money in a bank and hands over the ‘written order’ to the seller, so that the seller can ‘demand’ the deposited money from the bank where it was deposited (may not be in the same branch though). With effective from 1 April 2012, any DD over Rs.20000 must beĀ  A/C payee only. This means that a person who draws money by producing a DD will not be given physical money but instead the money will be deposited electronically to his bank account.

Suppose Mr.A wants to buy a product from a company xyz which costs Rs.600

Instead of giving the money to xyz, Mr.A draws a Demand draft (DD in short) for Rs.600 in favour of xyz by paying Rs.600 (plus an additional commission that goes to the bank utilized) and then hands over the DD to xyz.

Use of a Demand Draft has significantly decreased over the years. Today, its very rare to see the use of DD’s in e-commerce transactions. But it is still prevalent in fields like education, employment (this is coming down too) etc.

DD’s will have a validity period of 6 months 3 months (with effective from 1 April 2012). If the beneficiary didn’t produce the DD with in 3 months from the drawn date, then it will be void.

Many Demand draft, essentially consist of 3 variables

DD number

MICR number and

Transaction code

Some DD’s may also have the extra 6 digit numbers between MICR and transaction code.

The first variable is the DD number which will be of 6 digits, followed by 9 digit MICR code, then followed by the next 6 digits (may not exists in some banks) and lastly the 2 digit transaction code.

As far as the DD CHARGES go, the countries largest bank SBI charges are as follows:

Up to Rs.5000: Rs.25

From 5000 till 10000: Rs.41

From 10000 till 1 lakh: Rs.3 per every 1000 (minimum charge of Rs.51)

Above 1 lakh: Rs.3 per every 1000 (minimum charge of Rs.306)

Note: These rates are as on 1 June 2013 and may change any time.

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  1. CDR NJ premnath(Retd)

    Sir, am a retired defence officer and intend making a DD through SBI for making payment to Canteen Stores Dept. I will request you to clarify if am required to pay any commission charges.

    • Yes. But certain discount is provided for sr citizens and pensioners. Do mention it to the bank if you belong in that category.

  2. You mention that usage of DDs has come down. Are there any numeric data with you? Like how many DDs used to be issued by a bank earlier and how many now? All tenders, property registration, most govt fees, employment applications, entrance applications etc still require DD as the mode of payment. The number of applicant for all these services have increased over last many years. It is becoming increasing more common for residents in urban areas to buy/sell properties than earlier. So numeric data will be really useful.

    • Hi Manoj.

      No, that wasn’t backed up by any stats. Just personal experience and a foresight (although I agree, when I look at it now, I feel I should have been a little less authoritative when I said ‘significantly decreased’; this was written in 2009). All those you mentioned have alternative online options as well. Online applications, for jobs or schools, e-tenders, e-portals for Government’s services etc. Personally, its been atleast 6 years that I have had to use a DD and I have gone through job applications, buying a home in these years and paid so many Govt taxes/bills every year.
      It’s just a matter of adoption. Also, RBI is strictly pushing Green Banking channel to decrease use of paper instruments. So I would say, if the usage is not any less today, it will be tomorrow. Just a matter of time.

  3. Is service tax levied on the DD commission charges by SBI.

  4. How much is the dd charge for 3,00,000 rupees for most banks.

  5. How many charges will be paid to sbi for making dd of Rs.150000

  6. What is the charge for DD of 1,00,400.

  7. How many numbers are there in SBI DD.

  8. What is the validity period of DD.


  10. What is the making charge of Rs.25000/- in SBI.

  11. Please tell me the validity of SBI DD in India?

  12. I am a defence person…. and want to make a DD of 1,50,000.00… tell me how much SBI will charge me?

  13. what is charge for dd of Rs

  14. I am a defense service personnel (DSP) account holder. If I make a Demand Draft of 2 lac then what amount I have to pay for DD making charge? or it will be absolutely free?

  15. Transaction code on demand draft is 30, Kindly suggest whether this is a valid demand draft or not?

  16. Maharashtra Shetkari Sugar Ltd

    Can you tell me Commission charges for Rs. 26,37,000/-

  17. what are dd charges for 1900 rupees

  18. My my amt. is -376318.00 ol send DD charges

  19. true blue voice india pvt ltd

    2129198 what is the SBI current ac bank charges

  20. sir please tell me from where & how i can track my DD information of SBI bank ?

  21. pl tell me what is the dd charges for 7,00,000

  22. when amount we have pay 2000 Rs. then charge ?
    And what’s actual DD amount ?
    Commotion have to add in dd amount or not Piz guide me …
    Piz answer me what actual amount becomes DD of.

  23. What will be the D.D. charge of Rs.500000.00

  24. may I know the situation of DD no. 822059

  25. Pls help,
    I had subscribed for 2 years to BBC Knowledge magazine in march of this month by sending Rs 1200 as DD. As per the offer it contained an assured gift along with it but i have not received it yet. What do i do if i forgot the DD number??

  26. What is the commission on Rs 29630/- Rs 26220/- Rs 4370/-

  27. Sir,
    Please tell me how much demand charges will be paid of amount Rs. 1,24,000.00. Can I make this d.d against my account in SBI., Bistupur, Jamshedpur. In one cheque can i filled this amount with commission. please advice me through mail .

  28. vinod chandra vyas

    what is DD commission on Rs. 45000/-

  29. THANKS for SBI DD information.

  30. Hiya, it is very informative and also understandable. Thank you for providing such info.

  31. dd charges in sbi bank

    Please tell me dd charges for Rs-103666

  32. HOW MUCH COMMISSION OF DD RS.59411 pl tell me ………………rajeev

  33. Thanx, quiet helpful.

  34. DD Charges How Much For 5Lakhs

  35. what are the charges for cancellation f DD.please give reply

  36. can i get a draft canceled online? please guide me.

  37. could you tell me what are the charges for 50$ (2250) DD to usa.
    and also if i cancel the DD how much you will deduct.

  38. how many extra charges rupees will be give to SBI in demand draft of Rs.6300/-

  39. HIii… I have js made an international dd from SBI.,.. can you please tell me where can i find da dd number… ?

  40. please give me the details about cancellation of demand drafts

  41. if once DD is drafted,wil that money come back?


    How much charges do i have to pay to SBI for making DD of Rs 25385/-

  43. Please tell me …what would be the exchange rate for Rs.300000 and 400000.

    Many thanks in advance

  44. i want to know current dd charge of 800000

  45. DD Amt. 436000

  46. may i know current dd charges for 53923

    • 53923

      We have to make this a roung fig 54000
      => 10000+44000
      => 30+(44000/1000*2.5)
      => 30+44*2.5
      => 30+110
      => 140

      Therefore the DD charges for 53923 is 140.

  47. Helo sir,i hv a question. the Additional charges involved to Demand draft are called SURCHARGE or COMMISSION? plz reply

  48. may i know the dd charges of Rs.300000/-

  49. The draft number is the one within the double quotes right?

  50. how to find transaction id no for demand draft

  51. May i know about the current DD charges for Rs 90,000,000/-

  52. Please tell me how much bank charge ( Canara Bank ) of DD Rs. 220000/- payable at U.P

  53. How many charges will be paid to SBI for making DD on college faver of 40,000/rs
    ple rpl soon on my email id

  54. i want to know for which account the demand draft number 179449 and 179450 dated on 11/08/2006. was cleared. dd was on favour of m murali krishna rao.

  55. what is the current charges for cancellation of demand draft of Rs. 300 in sbi bank?


  57. please tell me dd charges for Rs 16675/-

  58. plzz tell me the DD charges of sbi for 63550 Rs.


  59. plzz tell me the DD charges of sbi for 87,725Rs

  60. Plz provide me the SBI dd charges for Rs.9,00,880.

    It is urgent

  61. How many charges will be paid to SBI for making DD of Rs 12,500/-


  62. how many rupees do you charge on a purchase of demand draft for Rs.20100/-.

  63. How many dd charge of rs 4000 in sbi by cheque.

  64. Detail of extra charges in demand draft

  65. how many extra charges rupees will be give to SBI in demand draft of Rs.17,000/-

  66. Bhagat Ram Mamta

    DD charges on government transactions

  67. thanks a lot…..!information was very much help full for me.

  68. The information posted helped me at right time . good

  69. Sriraj…whomever u r..u rock dude…thanks a lot

  70. Information is really helpful to me…
    Thanks a lot..!

  71. Thank you very much for kind co-operation.

  72. please tell us about sbi information

  73. Through Internet banking of SBI, there is a fee waiver of 30 rupees upto amount of 10,000 rupees .

  74. Thanks U Very Much !!!!

  75. Thanks dude..
    Was gettin a little frustrated here..

  76. it is very much usefull to me to fii bank application form.

  77. Thank you very much.
    Your information is very helpful to me .

  78. Thank you very much. Very much helpful

  79. Tat was a useful one for me in filling online appln form

    Thank u yar….

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