Technology for Layman


Difference between Demand Draft and Banker’s Cheque

Sometimes you might need to get a demand draft (DD) issued for someone. On certain occasions you may get a Banker’s cheque instead.

Demand Drafts and Banker’s Cheques are almost the same. In both cases, you pay the money in advance to get this. Or money is taken from your account for this reason. So you may consider both as something a pre-paid stuff. Unlike with ordinary cheques, here the amount is assured by bank. There is no fear of something being dis-honoured.

Now, the difference.

When you give the DD to someone, he/she tries to get it encashed or deposited to account. If the account is in a branch of same bank, (e.g. you gave a Citibank demand draft and the receiving person also has Citibank account) it gets cleared in that branch itself. So finally the Demand Draft get’s cleared in any branch of the issuing bank.

Banker’s Cheque goes the same way until the clearance part. Banker’s Cheque is to be cleared in the very specific branch of the bank that issued it. That is, if the Banker’s Cheque is issued at Bangalore branch of Citibank, it will finally get cleared in Bangalore branch. But this is not the user’s worry. Bank takes care of it once you submit the cheque to any of their branches.

So you can safely use a Banker’s cheque instead of a Demand draft if needed.


  1. Shree

    That means a cheque is different form a bankers cheque?

  2. Doc

    Yeah. Cheque is normally not guaranteed. But a banker cheque is guaranteed.

    • mohan

      thanks for this blog..

      • Maadhav

        Difference between a Banker’s Cheque and a Demand Draft, as far as I know is this:

        (i) When you wish to take a Demand Draft in favour of an organization which is present in the same city as that of the Bank from which you want the Demand Draft (for eg., if you want to take a D.D in favour of a company located in Hyderabad, and go to any Bank, say SBI, located in Hyderabad), then the Bank will issue you a ‘Bankers Cheque’ and not a Demand Draft. Generally, Demand Drafts are issued for outstation purposes i.e., in case of the organization in whose favour the Demand Draft is being drawn is present in some other city.

        (ii) Secondly, a Banker’s Cheque is the Cheque of the Bank. It is NOT a personal cheque of an account holder which has the likelihood of bouncing. A Banker’s Cheque will NEVER bounce. Normally, we see cheques get bounced or dishonoured due to insufficiency of funds in the issuer’s account or for some account related issues. But a Banker’s Cheque will NEVER get bounced because it is taken against money already deposited by the customer who is requesting for demand draft.

        This is what I know of the difference between the two. Please crosscheck once if you had any occasion to get a DD or Banker’s Cheque.

  3. Smideep

    Thanks for the info. Can you please solve my queries?

    is there a difference of who can get demand draft and who can get bankers cheque? Anyone can go to bank and get a DD. the same for Bankers Checque? Cn I walk into the bank and ask for a cheque even if i dont have account in the bank?

  4. Doc

    Yes anyone can go to a bank and ask for a bankers cheque as you do for a DD.

  5. Mutharasi

    1. In which circumstances we use banker’s cheque instead of
    demand draft.
    2. Who is the beneficiary in this case (Drawer or Drawee?)
    3. Any charges is applicable for bankers cheque like DD commission

    • Nims

      As far as i know, bankers checkues offer more security. Someone cant just encash your cheque in any branch.

      2. Beneficiary is the person who will get the money.

      3. Charges are almost same as that for DD

  6. Mutharasi

    Thanks for the information Nims.and I am not at all cleared for those answers pls help me to understand.

    1. what is the necessity of issuing banker’s cheque? (Is
    banker’s cheque is crossed one? ie., a/c payee or not?}

    2. If we don’t have any bank a/c, how it will be encashed?
    (If DD has not crossed, anyone (ie., office staff may) can
    go to bank and easily we can encash even though we don’t
    have bank a/c.

    But in your answer i understood that if we get bankers’
    cheque we should have the bank a/c? or we directly go
    to bank?

    3. Is the bankers cheque isn’t just like ordinary “self” cheque.

    • Urva

      @Mutharasi’s qns:
      3.Ordinary ‘self cheque’: The receiver does not know if you have money in bank. your cheque may bounce if you dont have money and simple wrote a cheque.

      Banker’s cheque: Cheque is given against HARD CASH or CASH IN YOUR ACCOUNT. You can’t fake it.

  7. Timms

    While taking DD you will have to fill “Payable at”. If you “payable at” place is in the same city where the bank is then they will issue Bankers cheque or else they will issue DD.

    • NISAM C

      very useful i was confused with getting a bankers check instead of dd…for same city purpose…

  8. unknown

    thanx for the information.but it did not really helped me much!!!!!!!!!!!!!!!!!!!

  9. unknown

    thanx for the information but it did not really helped much!!!!!!!!!!!!!!!!!!!!!!

  10. luna

    Recently i had requested for demand draft and instead of demand draft i got the cheque heading wuth banker’s cheque and i deposited that cheque into my account.So is there any chances of problem by having got banker’s cheque.

    • Vishy

      Will a Bankers Cheque issued from one city be honored in another city within the same state ?

      • Karun

        I think it will be honoured at any branch of the same bank. But finally the cheque wil have to come to the original branch for collection.

  11. jigme namgyal

    i have a banker’s cheque where my surname is typed first and date is not mention there is there any problem in chasing it.

  12. jigme namgyal

    i have a banker’s cheque where my surname is typed first and date is not mention there is there any problem.

  13. Udai Singh

    All are wrong.
    D.D is issued for outside city.
    if its used whitin a particular city its refers as banker’s cheque.

  14. suryakant

    I have taken bankers cheques almost nine years back and i not utilised that bankers cheque and want to cancel the same and the money should be credited in savings account can bank do so?

    It is nationalised bank and i want to know the RBI guidelines about the same.

    Thanks & Regards


    • Radan

      both DD , CHEQ and Banker chq is valid for max 6 months only based on the RBI guidelines.

      so ur Chq is already expired.

  15. kaushik


  16. Radan


    Thanks for the info.
    But if i am getting a banker chq from branch1 in city A and depositing in branch 2 in same city A.
    which branch is the clearing happen?
    Is it on branch 1 or branch 2.

  17. sandeep

    The difference is that in the case of cheque,cheque may be dishonoured.

    but in case of draft ,since it is from the bank,signed with authorities it cant be dishonoured.

  18. Arun Kumar

    While taking DD you will have to fill “Payable at”. If you “payable at” place is in the same city where the bank is then they will issue Bankers cheque or else they will issue DD.

  19. dr.gaurav bansal

    i hd a bankers cheque issue by a bank n i hv mine acc. in dat bank only…bt nw i cant live there so can i deposit this bankers cheque in my city branch of same bank only…is mine bankers cheque get cleared by dat same bank bt the brach is different….plz resolve mine problem….thnx

  20. Akash

    I want to know if i can use bankers cheque outside the city or not?

  21. praveen

    bankers cheque will be paid within the city


    The following are the main differences between a cheque and a demand draft:
    1. A cheque is issued by an account holder, who is called the drawer of the cheque. A bank Draft, on the othr hand, is issued by a bank.
    2. A cheque is drawn on a customer’s account in a bank. But, a draft is issued by a bank, by one branch of a bank on another branch of the same bank.
    3. A cheque is defined in the Negotiable Instruments Act, 1881. But a demand draft has not been defined in the NI Act.
    4. In a cheque, the drawer and the drawee are different persons. But in a draft, both the drawer and the drawee are the same bank.
    5. Payment of a cheque can be stopped before its payment, where as payment of a draft cannot be stopped.
    6. A cheque can be dishonoured for want of sufficient balance in the customer’s account, where as a demand draft cannot be dishounoued except on techncal grounds. For ex. post dated draft, amout in words and figures do not tally, etc.Here, it is not dishonoured, but the payment is postponed till the corrections are made and presented again for payment.
    7. A cheque is drawn payable to a specified person or his agent or its bearaer. A bank draft can be issued payable only to a specified person.


  23. As Demand Draft and Bankers Cheque are almost the same, most of the poeple opt for Demand Draft only as it has a wider acceptance…


    I have my account with ICICI Bank in bangalore and if I receive Bankers cheque from a person in Bareilly(Uttar Pradesh) from other bank say Bank of India. Now my question is that
    1) Can I deposit that banker cheque in bangalore ?
    2) or Should I deposit in Bareilly ICICI bank (even though my mother branch is in Bangalore)?

  25. jasbir singh

    Thanks for useful information 🙂 🙂


    jasbir singh

  26. kian

    Bankers Cheque is issued for within the city/state.
    DD will be used specially ther state.

  27. dave orosz

    once i have received a bankers cheque payable to me can the bank who issued it take it back

  28. Sir,
    A company wants a DD from me.
    The company has account in a bank at near by branch.
    If I take a DD / BC, in the same bank but at different branch in the same city, will it affect the company – delay in withdrawing my money and delay in my work getting done?

    • Sindhu

      Absolutely no problems. Drafts get encashed immediately no matter where you draw it.

  29. mahalakshmi

    i took a banker cheque instead of dd to pay my college fees.
    will they accept this in institutions ? or shld i need to cancel it and take a dd?
    plz anyone reply .

  30. Thiagharajan

    Dear Ms Maha, BC and DD have absolutely make no difference for us. Specifically in your case, if the bank you took DD and college’s bank account are of the same bank(not necessarily same branch), the Bank will issue a BC even if you asked for a DD. However, if the college’s account is in some other bank then the bank will issue DD.

  31. Vishnu

    Hi guys,
    I made a $150 DD from kuwait to pay my exam fees to IEI, Kolkata from Mashreq bank psc, New York, through an Exchange company. They ensured that it will be payable anywhere in India while issuing the DD. But in the IEI website it is mentioned as ‘payable at kolkata’. Also Mashreq bank has no branch in Kolkata. Will that be a problem for the DD encashment for IEI. Please advice on this matter.

  32. shreya

    will my college accept banker’s cheque instead of dd?

  33. jimmy

    Hi I want w apply in dda housing they want both DD and banker cheque my opint is that I have normal check my account in SBI and I can deposit money in any sbi branches in delhi my point is that what should I write inccheck SBI and that completed my bankes cheque or should I go to bank branch and as I make DD I have to di that kind off work in bank to get my bankers cheque

  34. Chenna

    My question is specific to Banker cheque and wrong(?) beneficiary name. I got two bankers cheques from SBI where my surname is not mentioned. I guess, they generated the cheque based on account name which was opened with name on my PAN card. Now, I am not able to deposit those cheques in any of my other bank accounts. (the reason is the beneficiary name is not matching.). I work from onsite and can’t go back to India at this moment. But I can send someone to branch with aadhar card and PAN card. As all you know the cheques are valid for 3months, any idea how to encash or transfer money to another account. thanks in advance.

  35. Yogesh Mishra

    Can you plz define the MICR Cheque…??

  36. T Joseph

    can I a bankers cheque from bank of india into my state bank of india account..pls advise

  37. Dipali

    Bank issued demand draft in favour of my name,instead of what name i want.if i dont want to cancel dd ,can i submit to my account same as do for cheque.reply me

  38. kamlesh

    Hi.. i want to purchase one machinery system from china.. payment is $585.0.. they want payment in dollor.. i have account in india.. how can i possible for bank to bank transfer they need IEC Code but i do not have.. is Banker cheque or DD possible for that and if it is possible then suggest me bank also.. thanks..

  39. manoj dabhi

    Give me information

  40. Asif

    what if the banker cheque is lost or stolen how would we claim back again from that bank where we had made banker cheque?

  41. Rohit Singh

    I got a sbi bankers cheque from a government Division,but unfortunately it lost.what should I do?

  42. ved

    Getting a Banker’s Cheque from SBI Noida, to be deposited in SBI Bangalore Is That in order?

  43. Fredrick prem.l

    I want to apply for MBA counseling in the address of (the secretary government college of technology )in coimbatore by (DD) I didn’t have any account in bank so I used my friend account and take Demand Draft but his name only mentioned in the DD for it have any problem please tell sir urgent

  44. beivateitha

    i received a bankers cheque issued from allahabad bank,noida. i have an sbi ac with home branch Saiha, Mizoram. i dropped it at sbi greater noida but on the slip i mistakenly mentioned the branch as alpha 1, greater noida instead of my home branch which is Saiha. will my bank ac still be credited..waiting for your feedback

  45. aditya

    If I draw a dd from bank of Baroda can it be encashed by the recieving party in icici bank.I mean can dd be used across banks.

  46. Can we give gold through DD CHECK

  47. Can we give gold through DD CHEQUE

  48. Sagar Pardeshi

    Ive taken A DD from HDFC bank To pay My ICAI registration In favour Of Secretary Of ICAI …In Dat It is written Tht It a A cheque and not a Demand fraft Or pay order…But Bank Gaved dat only With amouny below the cello tape.m

  49. azeemuddin

    iam an nri i made a bankers cheque from my overseas bank to my indian nri bank acc , the cheque went to the corresponding bank(to my overseas bank mentioned in the cheque) after a few days the corresponding bank sends a message to my bank quoting”isnsufficient funds” and hence cannot clear the bankers cheque.
    it has never happened before,is it possible i thought bankers cheques are guaranteed i would like to add that the overseas bank is fully viable and the cheque is genuine

  50. srinivasan

    respected sir,

    here i have sbi account at perambur branch. i taken a demand draft
    from perambur branch ( sbi account ). mistakenly , backside of the
    demand draft ,i over written the name wrongly and striken the name
    as like this ( ////// / )dash symbols. after leaving the gap i written the name with full details as correctly . my problem is
    whether my demand draft will be rejected ????. kindly mail me
    iam still confused whether it will be rejected or not. ( actually
    i presented the demand draft to school institution only ). school
    institution having sbi account at annanagar branch only.
    kindly clarify my doubt and tension in mind. whether it will be
    rejected or accepted ???
    kindly help me to solve it


  51. Arunaa

    I am applying for Can fin homes . I went to SBI Bank and asked for demand draft but they have given bankers cheque …
    Is there any problem will come…?

  52. Arunaa

    I am applying for Can fin homes . I went to SBI Bank and asked for demand draft but they have given bankers cheque …
    Is there any problem will come…?

  53. kanchan

    I have received a bankers cheque and has not been encashed ,it is 5 mnths past ,can it still be encashed and if not then what is to be done

  54. Aman

    I got a dd for my salary and it says a/c payee so is it as good as a crossed check

  55. if i issue a banker cheque from my account to a institute favour to attain interview but unfortunately i m unable to attain that interview
    is there any chance to get back tht amount in my account

  56. noor alam

    Dear Sir,

    i would like to say that before same day i make 4 Bankers Cheque rs of each 2000 in SBI but particular person not accept cheque he want to take amount in cash .

    so i want to cancel the cheque

    Kindly guide me that what is the process to cancel cheque



  57. Suryapratap Singh

    Do I need to put the payinst draft in a drop box of the same bank or I can do the same in the other bank drop box also?

  58. vinayak

    sir Maine ek dd 2011 m SBI se college k favour m banwai
    thi.baad m pta chala ki WO dd college account m ni submit hui.aur SBI walo ne written apne pad pr de diya ki kis date m bani aur kb paid hui.aur Maine CLG k account dhekha us date m wha koi credit ni hua h..sir m kya karu na bank help kr rhi h na college plz koi suggestion jldi bataiye mai 6 months se paresan hu plz sir

  59. siva

    U had given some clariry thanks

  60. osman

    I had submitted some kind of form in my college but along with we have to submit demand draft. But due to some urgency, the administrator told me to submit money to them only and in return they will make the demand draft for me from bank as many are there to do the same. Today they gave me the demand draft so that I can write the demand draft no. in my form. But I noticed there ware his name written on demand draft above somewhere it is stated something ‘issued by’ and his name. So now I am in doubt if he cancels the demand draft, will he get returned for it as I don’t have any proof. Because after filling I had submitted my form to him only. Thanx in advance. Please reply fast I’m worried now

  61. Naina

    I have a problm..
    I hane a DD which was issoed by my college ..and i have bank account in ajmer but my home town if jalore can i withdraw the money from jalore if yes than what is the procedure

  62. anil reddy pasham

    How can I cancel the bankers cheque. How much I lost if I cancel the bankers cheque for One lakh money. I need urgent

  63. Navveen

    I have a new problem in my DD. My Bank official just overwritten a DD which was poorly printed. DD has to be given to my college fee. They do not accept overwritten DD. But my bank official just yelled at me that overwriting is not a problem. Can a DD be overwritten??

  64. Pratiksha

    I had a DD issued on college name of 28k and I lost it ..are the money gone

  65. Cheques r not gauranteed by rbi but still they r accepted as money .why? Plz help me out….

  66. Shubhi agrawal

    Thnq….dis solved my query

  67. if a dd or bankers cheque is issued by a bank in bangalore and it needs to be encashed at kerala , will the bank in kerala charge collection fees when presented?

  68. Sophia Argon

    Helpful commentary . Incidentally , if anyone has been searching for a TX SOS 801 , my company found a fillable document here


    I have a demand draft. But here is no citi bank branch, can i exchange it any other bank.

  70. Anirban Mukherjee

    I have to pay my college semester fee.I have an educational loan in sbi.College has asked to pay through dd but the bank has issued a bankers cheque.Will it be accepted?The college has asked to submit fee in idbi bank.

  71. Meenal

    I have a bankers cheque of hdfc bank pahar ganj new delhi….my question is can i deposit the banker cheque in central bank subhash nagar or kotak mahindra bank in janak puri…..??? Aisa zaroori to nahi hdfc mai hi deposit karaya jaye jabki hdfc ka account nahi hai mere paas pls solve my query

  72. Armaan malik

    I have a bankers cheque of hdfc bank yamuna vihar new delhi….my question is can i deposit the banker cheque in any other bank as icici bank, sbi bank at same place …..??? Aisa zaroori to nahi hdfc mai hi deposit karaya jaye jabki hdfc ka account nahi hai mere paas pls solve my query

  73. Armaan malik

    Can anyone answer my q ?
    Can anyone help me to provide info about it ?
    I have a bankers cheque of hdfc bank yamuna vihar new delhi….my question is can i deposit the banker cheque in any other bank as icici bank, sbi bank at same place …..??? Aisa zaroori to nahi hdfc mai hi deposit karaya jaye jabki hdfc ka account nahi hai mere paas pls solve my query

  74. rakesh singh

    is bankers cheque account payee ?

  75. Rajesh Poojary

    Hi.. just wanted to know about the procedure of Banker’s Cheque, my company is getting a fund from a company based in UK, it will be coming under ECB guidelines of RBI, the investor would be issuing a bankers cheque of the amount he would be interested in, I am clueless hiw the procedures of Banker’s Cheque as the issuer is saying he would be sending the soft copy and after the acceptance based on soft copy they would be sending the hard copy, would appreciate if you can give us some information on this.


  76. Vamshi

    The company has asked to pay DD ,But by mistakei have paid bankers cheque is there any problem with that?

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  78. Shahul

    If the bankers cheque given a date and i want to withdraw cash before the given date is it possible ? or i have to wait till that commenced date ?

  79. Thanks for sharing this information. Very useful indeed.

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