Demand Draft, or DD, has been a part of our financial system for a long time. Surprisingly, people often do not understand what a Demand Draft is. It is an important document that banks draw up on behalf of their account owners. A Demand Draft is made when a drawer needs to transfer funds to a payee or organisation. The bank makes the Demand Draft as a guarantee to the recipient that the payer has the necessary funds. Hence, Demand Drafts offer reliability and convenience to those who use it.
It also helps foster trust between the two parties. Knowing the process when you have to make larger payments is crucial. Before anything, to make a Demand Draft, you first need to have a bank account. This article will provide instructions to open a bank account and make a Demand Draft.
How To Open a Bank Account
Know how to open a bank account to open a bank account, you must fit the eligibility criteria. Additionally, possessing all the documents necessary to open a bank account is important.
Eligibility Criteria
· Applicants must be Indian citizens over the age of 18 years.
· If you are below 18, a parent or legal guardian must open the account.
· Foreign nationals can apply for a bank account after residing in India for over 180 days.
Documents Needed:
· Proof of Citizenship: AADHAR card, Passport, or Voter card.
· Proof of Address: Voter card, Driver’s license, or utility bill.
· PAN Card
· Showing pay stubs for the last 6 months helps boost an application’s chances of approval.
· Passport-size photographs.
· A letter of introduction from an existing account holder (if required).
Application Process:
Opening a bank account is a straightforward process you can complete online or offline.
How To Open a Bank Account (Online)
· Visit your chosen bank’s website or app.
· Choose the account type you wish to open
· Click on the ‘open new account option.
· Fill in the required details, such as name, address, date of birth, and employment status, while making a minimal initial deposit.
· Upload all the requested documents and submit your application.
Following the verification procedure, your application will be finished. This includes the process of Video KYC without any middleman intervention to complete verification. If not, this can be completed via an assisted biometric authentication journey.
How To Open a Bank Account (Offline)
· Visit the nearest branch of your chosen bank.
· Speak to a bank representative, who will hand you a bank account opening form.
· Fill in the form and submit documents of proof for verification.
· Provide necessary documents like an Adhar Card and PAN Card.
· You can also proceed with Form 60 if your PAN card is unavailable.
· Submit the application.
· Your account will be opened within minutes after biometric authentication.
How To Make Demand Draft
Now, you possess a bank account. Remember to use the demand draft feature to ensure your important payments and transactions do not bounce. Here’s how you can make a Demand Draft.
Details Needed for Demand Draft:
· The account details of the recipient.
· The date of the Demand Draft.
· The bank branch which is issuing the demand draft.
· The amount that must be transferred.
· The signature and stamp of the bank official who issues the demand draft and its unique demand draft number.
Online:
· Head to your bank’s official website and enter your login details.
· There should be a “Request and Enquiries” section or page that you can visit.
· An “Issue Demand Draft” option will be on that page.
· Select the account you want the funds to be deducted from.
· Provide details of the recipient, such as the amount, payee details, etc.
· Choose the account you wish the funds to be deducted from
· Provide the details regarding the Demand Draft requested of you, such as the amount, payee details, etc.
Choose the bank branch where the demand draft needs to be finalised. To find your branch, utilise the branch location tool or enter your branch’s five-digit branch code.
How To Make Demand Draft (Offline):
To make an offline application Demand Draft, visit your nearest branch. Request a member of the staff for a Demand Draft form. Fill out all the information as required. You can sign the application and submit all the details to the bank if all the details are correct. Complete the process by confirming how the transaction must be made (cash, cheque, online).
CONCLUSION
Knowing how to open a bank account and what is Demand Draft Why it is important in today’s banking world. Remember that Demand Drafts are pre-paid and extremely useful if you do not want your payment to bounce.
