What is a Demand Draft (DD)?
A Demand Draft (DD) is a prepaid negotiable instrument issued by a bank that allows the transfer of money from one person to another. It is commonly used for:
- Payment of college or exam fees
- Business transactions
- Government-related payments
- Secure transfers without using cash
Since the money is already debited when a DD is issued, it is considered one of the safest methods of payment.
What is a Demand Draft Number?
A Demand Draft Number is a unique identification number printed on every demand draft. It serves as a reference code for:
- Tracking the DD status
- Confirming authenticity
- Resolving disputes or errors in payment
Banks and institutions often ask for the DD number while processing applications, payments, or refunds.
Where to Find the Demand Draft Number?
The DD number is easy to locate if you know where to look.
1. On the Top Right Corner
Most demand drafts have the DD number printed on the top-right corner of the draft. It is usually a 6- or 7-digit numeric code.
2. Near the Bank Details Section
Some banks print the DD number near the bank’s branch details or MICR code.
3. On the DD Receipt (Counterfoil)
When you purchase a demand draft, the bank gives you a receipt or counterfoil. The DD number is also printed there, which you should keep safely until the payment is cleared.
Why is the Demand Draft Number Important?
The demand draft number plays a vital role in multiple ways:
1. For Tracking Payment Status
The DD number helps both payer and payee track whether the draft has been cleared or not.
2. For Refunds or Cancellations
If the draft is not used or needs to be cancelled, the bank requires the DD number to process the refund.
3. For Application Submissions
Educational institutions, government bodies, and businesses often ask for the DD number in the application form as proof of payment.
4. For Security and Verification
The DD number ensures that the draft is genuine and prevents fraud. Banks use it to verify authenticity during clearing.
Difference Between Demand Draft Number and Other Numbers
It is easy to confuse the DD number with other numbers printed on the draft. Here’s how they differ:
- DD Number: Unique identifier for tracking the draft.
- MICR Code: Related to the bank branch and clearing system.
- Serial Number: Internal tracking number for the bank.
Always use the DD number when asked for payment reference.
Tips to Keep Your Demand Draft Number Safe
- Always note down the DD number immediately after receiving the draft.
- Keep the receipt/counterfoil secure until the payment clears.
- Share the DD number only with the concerned party (e.g., college, business, or institution).
- In case of loss, immediately contact your bank with the DD number details.
Final Thoughts: The demand draft number may look like just another code, but it plays a key role in payment verification, tracking, and refunds. Knowing where to find it and how to use it ensures smoother transactions, especially when dealing with critical payments like exams, government fees, or business deals.
Author
