Demand Draft (DD)

byPaytm Editorial TeamLast Updated: September 10, 2025

Meaning

A Demand Draft (DD) is a prepaid instrument issued by a bank to transfer money from one branch to another.

Features

  • Safe and secure method of payment.
  • The amount is guaranteed by the issuing bank.
  • Cannot be dishonored like a cheque.

Example

If you want to pay fees to a college in another city, you can use a demand draft to transfer the money safely.

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