SBI Demand Draft (DD) Charges Calculator
SBI Demand Draft (DD) charges are statutory fees levied by State Bank of India based on four amount slabs: flat ₹25 up to ₹5,000; flat ₹50 for ₹5,001–₹10,000; ₹5 per ₹1,000 (min ₹60) for ₹10,001–₹1,00,000; and ₹4 per ₹1,000 (min ₹600, capped at ₹2,000) for amounts above ₹1,00,000. All charges include 18% GST.
SBI Demand Draft & Banker's Cheque Charges Calculator
Calculate exact commission, 18% GST, online courier fees, and cancellation charges for SBI drafts
Enter the exact amount you wish to draw in the name of the beneficiary/college/court.
₹5 per ₹1,000 or part thereof (Minimum ₹60). 25 units × ₹5 = ₹125
Includes Draft Face Value (₹25,000) + Total Service Fees (₹125).
- Valid for 3 months from the date of issue across all SBI and associate branches.
- No extra cash-handling charge is levied if paying cash for draft creation at branch.
- Under RBI guidelines, Demand Drafts for ₹50,000 and above cannot be issued against cash; debit from account is mandatory.
- PAN submission is mandatory for transactions of ₹50,000 and above under Rule 114B of Income Tax Rules.
Official SBI Demand Draft / Banker's Cheque Slab Rates (FY 2025–26)
Source: State Bank of India Schedule of Service Charges for Inter-Office Instruments (IOI). Rates are inclusive of 18% GST.
| Draft Amount Range (Slab) | Service Charges (Incl. GST) | Minimum Charge | Maximum Charge | Worked Example |
|---|---|---|---|---|
| Upto ₹5,000 | Flat ₹25/- | ₹25 | ₹25 | ₹3,000 draft fee = ₹25 |
| Above ₹5,000 upto ₹10,000 | Flat ₹50/- | ₹50 | ₹50 | ₹8,000 draft fee = ₹50 |
| Above ₹10,000 upto ₹1,00,000 | ₹5/- per ₹1,000 or part thereof | ₹60 | ₹500 | ₹25,000 draft fee = ₹125 |
| Above ₹1,00,000 | ₹4/- per ₹1,000 or part thereof | ₹600 | ₹2,000 (Statutory Cap) | ₹2,50,000 draft fee = ₹1,000; ₹10L fee = ₹2,000 |
Mathematical Formulation of SBI Demand Draft Commission
The commission fee $C(x)$ for an SBI Demand Draft of face value $x$ in INR is governed by the following piecewise function (inclusive of 18% GST):
25, for x ≤ 5,000
50, for 5,000 < x ≤ 10,000
max(60, ⌈x / 1,000⌉ × 5), for 10,000 < x ≤ 1,00,000
min(2,000, max(600, ⌈x / 1,000⌉ × 4)), for x > 1,00,000
• Part Thereof (⌈x / 1,000⌉): Any fraction of ₹1,000 is rounded up to the nearest ₹1,000. For instance, ₹25,200 is treated as 26 thousand units (26 × ₹5 = ₹130).
• Statutory Cap (≤ ₹2,000): No customer can be charged more than ₹2,000 commission on a single draft, even for ₹50 Lakhs or ₹1 Crore.
• Branch Issuance: Total = Face Value (x) + C(x)
• Online Courier Delivery: Total = Face Value (x) + C(x) + ₹59 (Courier Fee)
• Online Branch Collection: Total = Face Value (x) + C(x) + ₹0
Realistic Worked Examples: College Admission vs Property Tender Draft
- Draft Face Value:₹25,000
- Slab Formula Applied:25 units × ₹5 / thousand
- SBI Commission (Incl. 18% GST):₹125
- Total Debit from Account:₹25,125
- Draft Face Value:₹5,00,000
- Calculated Commission:500 units × ₹4 = ₹2,000
- Commission Charged (Max Cap):₹2,000
- Total Debit from Account:₹5,02,000
Demand Draft vs Banker’s Cheque vs NEFT/RTGS vs Cheque
Understanding when to use a Demand Draft versus faster electronic payment channels:
| Feature | Demand Draft (DD) | Banker’s Cheque (Pay Order) | NEFT / RTGS Transfer | Cheque |
|---|---|---|---|---|
| Issuing Authority | Bank (State Bank of India) | Bank (Local Branch) | Electronic Clearing (RBI) | Account Holder (Drawer) |
| Geographic Clearing | All India (Any outstation branch) | Local Clearing Zone only | Nationwide Pan-India | Pan-India CTS-2010 |
| Bounce / Default Risk | Zero (Prepaid guaranteed funds) | Zero (Prepaid guaranteed funds) | Instant / Reversible if failed | High (Subject to balance) |
| Standard Fees | ₹25 to ₹2,000 (Slab rate) | ₹25 to ₹2,000 (Slab rate) | Free (Online savings accounts) | Free (First 25-50 leaves/yr) |
| Validity Period | 3 Months from issue date | 3 Months from issue date | Real-time (Immediate) | 3 Months from cheque date |
| Cancellation Mode | Physical branch visit only | Physical branch visit only | Not applicable (Immediate) | Stop payment via App/Branch |
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Frequently Asked Questions on SBI Demand Draft & Pay Order Charges
Q:How are SBI Demand Draft (DD) charges calculated?
State Bank of India calculates draft charges based on 4 tiered slabs: Upto ₹5,000 is flat ₹25; ₹5,001 to ₹10,000 is flat ₹50; ₹10,001 to ₹1,00,000 is ₹5 per ₹1,000 or part thereof (minimum ₹60); and Above ₹1,00,000 is ₹4 per ₹1,000 or part thereof (minimum ₹600, capped at a maximum of ₹2,000). All official published rates are inclusive of 18% GST.
Q:What is the maximum charge for issuing an SBI Demand Draft?
The maximum commission payable for issuing a Demand Draft in SBI is capped at ₹2,000 (inclusive of GST), regardless of how large the draft amount is (even for ₹10 Lakhs, ₹50 Lakhs, or ₹1 Crore). The statutory rate is ₹4 per ₹1,000 subject to the ₹2,000 ceiling.
Q:Can I get an SBI Demand Draft made against cash without having an SBI bank account?
Yes, non-customers can get a Demand Draft made by paying cash at any SBI branch for amounts under ₹50,000. However, for amounts of ₹50,000 and above, RBI guidelines and Section 114B of the Income Tax Act strictly prohibit cash issuance; payment must be made via account debit, cheque, or clearing, and submitting PAN is mandatory.
Q:How much does SBI charge for Demand Draft cancellation or revalidation?
For cancelling an unused SBI DD, charges are Nil for drafts up to ₹500; ₹29.50 (₹25 + 18% GST) for ₹501 to ₹5,000; ₹59 (₹50 + 18% GST) for ₹5,001 to ₹10,000; and ₹118 (₹100 + 18% GST) for drafts above ₹10,000. For revalidating an expired DD (past its 3-month validity) or issuing a duplicate DD, the fee is ₹236 (₹200 + 18% GST).
Q:What is the difference between a Demand Draft (DD) and a Banker’s Cheque (Pay Order)?
Both instruments are prepaid and guaranteed by the bank, meaning they cannot bounce. A Demand Draft is payable at any outstation branch across India. A Banker’s Cheque (also known as a Pay Order) is payable only at local branches within the same clearing zone or city where it was issued. SBI applies the exact same slab rates for both instruments.
Q:What are the charges for requesting an SBI DD online through Net Banking / YONO?
The base draft commission remains identical to branch rates. If you choose to collect the physical draft yourself from an SBI branch, there is ₹0 extra charge. If you choose postal delivery to your registered address, an additional postal/courier fee of ₹59 (₹50 + 18% GST) is charged.
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