Quick answer: An SBI demand draft (DD) is a prepaid bank instrument you can buy at any SBI branch or through OnlineSBI internet banking. Charges start at ₹25 (GST included) for drafts up to ₹5,000 and are capped at ₹2,000. DDs of ₹50,000 or more cannot be paid in cash, and every SBI DD is valid for 3 months.
| Point | SBI demand draft rule |
|---|---|
| Where to apply | Any SBI branch (paper form) or OnlineSBI (account holders) |
| Issue charge | ₹25 to ₹2,000, GST included, based on DD amount |
| Online courier fee | ₹50 + GST (only if you choose courier delivery) |
| Cash limit | Below ₹50,000 per DD (RBI rule) |
| Validity | 3 months from date of issue |
| Cancellation | Branch only, ₹0 to ₹100 + GST |
Charges as per SBI’s service charge schedule updated on 30.09.2025. Confirm at your branch before issuing.
What Is an SBI Demand Draft (SBI DD)?
An SBI demand draft is a payment instrument issued by State Bank of India that guarantees payment to a named payee. You pay SBI the full amount upfront, so the draft cannot bounce the way a cheque can when funds run short. SBI’s service charge schedule groups DDs and Bankers’ Cheques together as “Inter Office Instruments” (IOIs), which is why you may see that term on your receipt.
Colleges, recruitment boards, courts, landlords and government offices still ask for DDs because payment is assured before the instrument changes hands.
Who is involved:
- Purchaser (you): the person paying for the DD. Since September 15, 2018, RBI requires the purchaser’s name to be printed on the face of the draft.
- Payee: the person or institution named on the DD, for example “Registrar, XYZ University”.
- Issuing branch: the SBI branch that issues the draft.
- Payable at: the city or branch where the payee will present the DD.
If these roles feel unfamiliar, our guide to drawer, drawee and payee explains the same structure for cheques.
SBI DD vs Cheque: Why Institutions Ask for a DD
A demand draft is prepaid by the bank, while a cheque depends on the balance in the writer’s account on the day it is presented. That single difference is why fee-collecting bodies prefer DDs.
| Feature | SBI Demand Draft | Cheque |
|---|---|---|
| Who issues it | SBI (the bank) | Account holder |
| Funds | Paid upfront to SBI | Debited only when presented |
| Can it bounce? | No | Yes, if balance is short |
| Who can buy it | Account holders and non-customers | Account holders only |
| Cost | ₹25 to ₹2,000 per DD | Usually free (cheque book charges apply) |
| Validity | 3 months | 3 months |
A cheque that fails for insufficient funds can lead to penalties and legal notices, as covered in our post on what happens when cheques bounce. For a deeper comparison, read demand draft vs cheque.
How to Issue an SBI Demand Draft Online (Online DD SBI)
You can request an online DD through SBI’s retail internet banking (OnlineSBI) if you hold an SBI savings or current account with internet banking active. The DD amount plus charges is debited instantly, and the physical draft is either kept for collection at a branch or sent by courier.
Before you start, keep ready:
- OnlineSBI username, password and the profile password (if set)
- Registered mobile number for the OTP
- Exact payee name as the institution has asked for it
- Amount and the city or branch where the DD should be payable
- Enough balance for the DD amount plus charges
Step-by-Step: Online DD in OnlineSBI
- Log in to OnlineSBI (retail internet banking).
- Open the Payments/Transfers menu and select the demand draft option (shown as “Issue Demand Draft” on many accounts).
- Choose the debit account from which the DD amount and charges will be taken.
- Enter the payee name exactly as required. Spelling mismatches are the most common reason a DD gets rejected by a college or office.
- Enter the amount in figures. Check it twice, since the draft cannot be changed after issue.
- Select where the DD is payable (city or branch).
- Pick delivery mode:
- Collect from branch: no extra fee; carry ID when you collect.
- Courier: ₹50 + GST is added; the DD goes to your address registered with SBI.
- Review the summary, including commission, then confirm with the OTP sent to your registered mobile.
- Save the reference number shown on the confirmation screen. You will need it to follow up.
Practical tip: If the DD is needed within a day or two, choose branch collection. Courier timelines depend on your location and are not guaranteed by SBI.
OnlineSBI also handles utility bills and government challans. See our guide on SBI bill payment and challan payment online.
Who Cannot Use Online DD SBI
- People without an SBI account. Non-customers must buy a DD at a branch.
- Anyone without internet banking or with a dormant OnlineSBI profile.
- Anyone needing to pay with cash. Online DDs are always funded by account debit.
How to Make an SBI Demand Draft at a Branch
Buying a DD at the branch works for both SBI customers and non-customers, and the draft is usually handed over the same day.
- Visit any SBI branch and ask for the DD application form at the draft or enquiry counter.
- Fill in the payee, amount, payable-at city and your details (field-by-field guide below).
- Choose a payment method: cash (below ₹50,000), a cheque, or a debit instruction from your SBI account.
- Attach ID proof if the branch asks, especially as a non-customer paying cash.
- Submit the form with payment. The branch verifies details and issues the DD.
- Check the DD before leaving the counter: payee name, amount in figures and words, date and your name as purchaser.
- Keep the counterfoil and cash receipt safely. Both are needed for cancellation or a duplicate.
SBI states that no separate cash handling charge is added for DDs bought with cash, so the issue charge is the only fee.
SBI DD Form: How to Fill It Correctly
The SBI DD form is a one-page application available at every branch. Each field maps to something printed on the draft, so an error on the form becomes an error on the DD.
| Field on SBI DD form | What to write | Common mistake |
|---|---|---|
| Date | Today’s date | Leaving it blank |
| Name of payee / In favour of | Exact name given by the institution | Short forms or wrong spelling |
| Payable at | City or branch where the payee banks | Writing your own city |
| Amount (figures) | Exact amount, e.g. 1,500.00 | Mismatch with words |
| Amount (words) | “Rupees One Thousand Five Hundred Only” | Missing “Only” |
| Commission / charges | As told by the counter staff | Guessing the amount |
| Total | DD amount + charges | Adding wrong |
| Mode of payment | Cash / cheque number / account debit | Not filling cheque details |
| Applicant name, address, mobile | Your details | Unreadable handwriting |
| Account number | Only if paying by debit | Wrong number |
| PAN | Only if the branch asks for it | Skipping it when asked |
| Signature | Your usual signature | Mismatch with bank records |
Writing the amount in words follows the same rules as a cheque. See our guide on writing amounts in words for formats that banks accept.
SBI DD Form PDF: Can You Download It?
SBI does not publish an official downloadable retail DD application form PDF on its website. Forms circulating on third-party sites may be outdated or belong to other banks, and branches can refuse them.
What to do instead:
- Collect the free form at any SBI branch counter.
- Use OnlineSBI, which needs no paper form at all.
- Use the field table above to prepare your details in advance, so filling the form takes two minutes.
SBI Demand Draft Charges 2026
SBI charges a slab-based commission on every DD. All amounts below include GST, as stated in SBI’s service charge schedule updated on 30.09.2025.
| DD amount | SBI DD charge (incl. GST) |
|---|---|
| Up to ₹5,000 | ₹25 |
| ₹5,001 to ₹10,000 | ₹50 |
| ₹10,001 to ₹1,00,000 | ₹5 per ₹1,000 (minimum ₹60) |
| Above ₹1,00,000 | ₹4 per ₹1,000 (minimum ₹600, maximum ₹2,000) |
| Courier for online DD | ₹50 + GST extra |
Worked Examples
| DD amount | Calculation | Charge |
|---|---|---|
| ₹3,000 | Flat slab | ₹25 |
| ₹8,000 | Flat slab | ₹50 |
| ₹20,000 | 20 × ₹5 | ₹100 |
| ₹50,000 | 50 × ₹5 | ₹250 |
| ₹1,50,000 | 150 × ₹4 = ₹600 | ₹600 |
| ₹5,00,000 | 500 × ₹4 = ₹2,000 | ₹2,000 |
| ₹8,00,000 | 800 × ₹4 = ₹3,200, capped | ₹2,000 |
Note the jump at ₹1 lakh: a ₹1,00,000 DD costs ₹500, but a ₹1,05,000 DD costs ₹600 because of the higher minimum. If the payee allows it, two smaller DDs can sometimes be cheaper.
Accounts That Get Free SBI DDs
SBI waives DD issue charges for several account types, per its 30.09.2025 schedule:
| Account type | DD waiver |
|---|---|
| All Salary Package accounts | Free, no limit on number or amount (DD must be funded from the salary account) |
| Shaurya Family Pension Account and SBI RISHTEY | Free, no limit |
| Diamond, Platinum, Palladium, Rhodium current accounts | Unlimited free DDs |
| Gold variant current account | 50 free DDs per month |
| Silver variant current account | 20 free DDs per month at home branch |
| Shubharambh Startup current account | 10 free DDs/BCs per month |
Courier charges are still recovered on waived DDs. If you hold a salary account, check you are debiting that account, or the waiver will not apply.
SBI DD Limits: Cash, Cheque and PAN Rules
The biggest restriction on an SBI DD is how you pay for it, not how large it is.
- Cash: RBI rules (circular dated August 1, 2011) bar banks from issuing a DD of ₹50,000 or more against cash. Keep each cash-funded DD at ₹49,999 or below.
- Account debit or cheque: No RBI ceiling on the DD amount. For large drafts, SBI’s ₹2,000 charge cap applies.
- Online: Limited by your OnlineSBI transaction limits, which you can check after logging in.
- PAN: Under the Income-tax Rules 2026, effective April 1, 2026, the old daily PAN requirement for cash purchase of bank drafts has been dropped, according to published summaries of the new rules. Branches may still ask for PAN or ID as part of KYC, so carry it.
If you plan to deposit cash first and then buy a DD, our post on savings account cash limits covers the deposit side.
How to Track an SBI Demand Draft
SBI does not offer a public “track my DD” page like a courier website. You track an SBI DD through your own account records and the branch.
| What you want to know | Where to check |
|---|---|
| Was my online DD request accepted? | OnlineSBI request/transaction status, using the reference number |
| Was the money debited? | Account statement or passbook entry for the DD |
| Has the courier dispatched it? | SMS from SBI or the courier reference, if shared |
| Has the payee encashed it? | Ask the issuing branch with the DD number and date |
| Is the DD still valid? | Date of issue on the DD + 3 months |
To see the DD debit and its reference, download your SBI bank statement or check your account balance for the deduction.
Tip: Photograph both sides of the DD before handing it over. The DD number, date and amount are all you need for any follow-up.
SBI DD Validity and Revalidation
An SBI demand draft is valid for 3 months from the date of issue, in line with RBI’s instruction effective April 1, 2012.
If the payee did not deposit it in time:
- Only the purchaser can request revalidation.
- Take the original DD and your receipt to the issuing branch.
- Submit a written revalidation request.
- Pay the revalidation charge, if any. SBI’s current public schedule does not list a separate DD revalidation fee, so confirm the amount at the branch.
If the DD is too old or the purpose has lapsed, cancel it instead.
How to Cancel an SBI Demand Draft
An SBI DD cannot be cancelled online, through OnlineSBI or YONO. You must visit a branch, preferably the issuing branch.
Documents needed:
- Original demand draft
- Written cancellation request (DD number, date, amount, payee, reason)
- Cash receipt or counterfoil, if you paid in cash
- ID proof
Refund method: If you paid by account debit, the refund goes back to that account. Cash purchases are refunded per branch procedure, usually after identity checks.
SBI DD Cancellation Charges
| DD amount | Cancellation charge |
|---|---|
| Up to ₹500 | Nil |
| ₹501 to ₹5,000 | ₹25 + GST |
| ₹5,001 to ₹10,000 | ₹50 + GST |
| Above ₹10,000 | ₹100 + GST |
Effective since 01.09.2021, as per SBI’s schedule updated on 30.09.2025.
Unlike issue charges, cancellation charges exclude GST, so 18% is added on top.
Lost SBI Demand Draft: Getting a Duplicate
If a DD is lost before the payee deposits it, act the same day.
- Inform the issuing branch in writing with DD number, date, amount and payee name, and ask them to stop payment.
- Submit an application for a duplicate DD.
- Sign an indemnity bond if the branch asks for one.
- Pay the duplicate issue charge as advised by the branch.
RBI’s customer service guidelines require banks to issue a duplicate DD within a fortnight of receiving the request, with interest payable for longer delays. Keep a copy of your application with the branch stamp as proof of the date.
What Experts Say
Bank staff and finance professionals who handle DDs regularly tend to point to the same problem areas:
- Payee name errors cause most rejections. Universities and recruitment boards often specify a long payee name. Copying it from the official notice, word for word, avoids a wasted trip.
- “Payable at” matters more than people think. Choosing your own city instead of the payee’s can delay clearing, even though most DDs now clear through CTS.
- The ₹50,000 cash rule is strictly applied. Branches will not split one payment into two cash DDs for the same payee to get around it.
- Online DDs suit planned payments. For anything due within 48 hours, a branch DD collected in person is the safer option.
- Keep records until the payee confirms receipt. The receipt, DD photo and statement entry are what a branch needs to trace or cancel a draft later.
SBI Demand Draft: Quick Checklist
- Payee name copied exactly from the official notice
- Correct “payable at” city
- Amount checked in figures and words
- Cash DDs kept below ₹50,000
- Charges calculated using the slab table
- Salary or premium current account used for the debit, if eligible for a waiver
- Receipt and DD photo saved
- Deposit deadline noted (issue date + 3 months)
New to banking terms like DD, CTS or IOI? Our list of banking abbreviations explains them in one place.
Frequently Asked Questions
Can I make an SBI demand draft online?
Yes. SBI account holders registered for OnlineSBI internet banking can request a demand draft online. The amount and charges are debited from your account, and you either collect the DD from the chosen branch or get it by courier for Rs 50 plus GST.
What are SBI demand draft charges in 2026?
SBI charges Rs 25 for a DD up to Rs 5,000, Rs 50 up to Rs 10,000, Rs 5 per Rs 1,000 (minimum Rs 60) up to Rs 1 lakh, and Rs 4 per Rs 1,000 above Rs 1 lakh with a minimum of Rs 600 and a maximum of Rs 2,000. These figures include GST.
Can I download the SBI DD form PDF?
SBI does not publish an official downloadable retail DD application form on its website. The form is available free at the draft counter of any SBI branch. Online requests through OnlineSBI do not need a paper form.
What is the maximum SBI DD amount I can pay in cash?
Under RBI rules, a demand draft of Rs 50,000 or more cannot be issued against cash. For cash, keep each DD below Rs 50,000. Larger DDs must be paid by debit to your account or by cheque.
How long is an SBI demand draft valid?
An SBI demand draft is valid for 3 months from the date of issue printed on it. After that, the purchaser must ask the issuing branch to revalidate it before the payee can deposit it.
How can I track my SBI demand draft?
SBI does not offer a public DD tracking page. Track it through the request status in OnlineSBI, the DD debit entry in your account statement, SMS alerts, or the courier reference if you chose courier delivery. For payment status, ask the issuing branch with the DD number.
Can I cancel an SBI demand draft online?
No. SBI demand drafts can only be cancelled at a branch. Submit the original DD with a cancellation request, and the cash receipt if you paid in cash. Cancellation is free up to Rs 500 and costs Rs 25 to Rs 100 plus GST above that.
Sources: State Bank of India, Service Charges (updated as on 30.09.2025); Reserve Bank of India circular DBOD.BP.BC. No. 26/21.01.001/2011-12 dated August 1, 2011; RBI instructions on purchaser name on DDs (effective September 15, 2018); Income-tax Rules, 2026. Charges and procedures can change; confirm with your SBI branch before issuing a DD. FinPulse India is not affiliated with State Bank of India.