Guide to Demand Drafts: Meaning, Application, Charges

A demand draft is a pre-paid financial instrument issued by a bank or NBFC that guarantees payment to the specified payee. Unlike cheques, demand drafts ensure secure and reliable transactions as the amount is already paid to the issuing institution. This eliminates the risk of payment default, making demand drafts a preferred choice for high-value transactions.

Purpose and function

Demand drafts are widely used for:

• Educational fee payments: Universities and schools often require payments via demand drafts for added security.
• Property transactions: When purchasing real estate, demand drafts ensure guaranteed payment to sellers.
• Business dealings: Companies prefer this instrument to avoid cheque bounce risks and ensure timely payments.

By offering guaranteed payment, demand drafts provide peace of mind to both the payer and the payee.

While both demand drafts and cheques are used for payments, they differ significantly in terms of functionality and reliability. Here is a comparison:

Demand drafts are ideal for situations requiring secure payments, such as property purchases or educational fees, while cheques are better suited for routine transactions.

Applying for a demand draft online is a streamlined process, especially for Bajaj Finserv customers. Follow these steps to apply for a demand draft using the Bajaj Finserv Service Portal:

Step-by-step guide:

1. Log into your Bajaj Finserv account: Access the Service Portal using your registered credentials.
2. Navigate to the demand draft section: Select the relevant option under financial services.
3. Enter details: Fill in the payee’s name, amount, and other required details accurately.
4. Verify and confirm: Double-check the information and confirm the request.
5. Complete payment: Make the necessary payment to initiate the demand draft issuance.
6. Track application status: Use the Service Portal to monitor the status of your demand draft.

Tips for a smooth application process:

• Ensure all details are accurate to avoid delays.
• Use Bajaj Finserv’s chatbot for assistance during the application process.
• Check the "Fees and Charges" section to understand the applicable costs.

Call to action: Log into your Bajaj Finserv account now to apply for a demand draft seamlessly.

Charges associated with issuing a demand draft

Demand drafts come with nominal charges, which vary depending on the issuing institution and the amount. Bajaj Finserv ensures transparency by clearly outlining these charges in its "Fees and Charges" section.

Common charges:

• Issuance charges: A small fee based on the demand draft amount.
• Cancellation charges: Applicable if you cancel the draft after issuance.
• Courier charges: If the demand draft is delivered to your address.

It is essential to review these charges before applying for a demand draft. Bajaj Finserv makes this process easy by providing all relevant details on its platform.

Call to action: Visit the Bajaj Finserv "Fees and Charges" section to calculate your demand draft costs instantly.

How Bajaj Finserv integrates demand draft services

Bajaj Finserv enhances the efficiency of demand draft applications by leveraging its robust Service Portal and customer-centric features. Here is how Bajaj Finserv integrates demand draft services seamlessly:

Key features:

• Service Portal: A user-friendly platform for demand draft applications, tracking, and statement downloads.
• Chatbot assistance: Instant help for resolving queries during the application process.
• Eligibility: Services are exclusive to existing Bajaj Finserv customers with completed transactions or established relationships.

Benefits for customers:

• Convenience: Apply for demand drafts online without visiting a branch.
• Transparency: Access detailed information on charges and terms.
• Reliability: Enjoy secure transactions backed by Bajaj Finserv’s trusted platform.

Call to action: Explore Bajaj Finserv’s Service Portal today to experience hassle-free demand draft applications.