If you need a demand draft (DD) from SBI, the short answer is this: the commission runs from ₹25 for small drafts up to a maximum of ₹2,000 for large ones, and GST is already included in those figures.
A demand draft is a payment instrument issued by the bank after it receives your money. Colleges, government offices and many businesses still ask for one because the payment is backed by the bank, not by your personal account. Below you will find the exact slabs, worked examples, extra costs to watch for and the steps to get a DD.
SBI Demand Draft Commission Charges – Amount-Wise Breakdown
SBI follows a slab-based fee structure for issuing Demand Drafts and Banker's Cheques. The same issuance rates apply to customers requesting a DD through a branch or SBI Internet Banking.
| Demand Draft Amount | SBI DD Commission Charges |
|---|---|
| Up to ₹5,000 | ₹25 |
| Above ₹5,000 and up to ₹10,000 | ₹50 |
| Above ₹10,000 and up to ₹1,00,000 | ₹5 per ₹1,000 (minimum ₹60) |
| Above ₹1,00,000 | ₹4 per ₹1,000 (minimum ₹600, maximum ₹2,000) |
Note: The above issuance charges are inclusive of GST, as specified in SBI's published service-charge schedule. Online DD delivery attracts an additional postage or courier charge of ₹50 plus GST.
How Much Commission Does SBI Charge for Different DD Amounts?
| DD Amount | How It Is Worked Out | Commission |
|---|---|---|
| ₹4,000 | Fixed slab | ₹25 |
| ₹10,000 | Fixed slab | ₹50 |
| ₹25,000 | 25 × ₹5 | ₹125 |
| ₹50,000 | 50 × ₹5 | ₹250 |
| ₹1,00,000 | 100 × ₹5 | ₹500 |
| ₹1,50,000 | 150 × ₹4 = ₹600, which equals the minimum | ₹600 |
| ₹3,00,000 | 300 × ₹4 | ₹1,200 |
| ₹5,00,000 | 500 × ₹4 | ₹2,000 |
| ₹10,00,000 | 1,000 × ₹4 = ₹4,000, capped | ₹2,000 |
An odd quirk: a ₹1,00,000 DD costs ₹500, but a ₹1,00,500 DD costs ₹600, because the higher slab has a ₹600 minimum. If you only need to pay around ₹1 lakh and have some flexibility, check the exact amount first.
Total cash needed: you pay the DD amount plus commission. For a ₹50,000 DD, that is ₹50,250.
How Is SBI DD Commission Calculated?
SBI does not charge the same commission for every Demand Draft. The calculation changes depending on the amount you want to issue.
For a better understanding, consider these examples:
Example 1: Demand Draft of ₹50,000
Suppose you want to obtain a Demand Draft worth ₹50,000. This amount falls in the above ₹10,000 to ₹1 lakh category.
- DD amount: ₹50,000
- Commission rate: ₹5 per ₹1,000
- Calculation: 50 × ₹5
- Total commission: ₹250
Therefore, you need to pay ₹50,250 in total, excluding any applicable delivery charges.
Example 2: Demand Draft of ₹2 lakh
If you need a DD of ₹2 lakh, the applicable commission rate is ₹4 per ₹1,000.
- DD amount: ₹2,00,000
- Commission rate: ₹4 per ₹1,000
- Calculation: 200 × ₹4
- Total commission: ₹800
Your total payment will be ₹2,00,800, excluding any applicable delivery charges.
Example 3: Demand Draft of ₹5 lakh
For a DD of ₹5 lakh, the commission calculated at ₹4 per ₹1,000 comes to ₹2,000.
- DD amount: ₹5,00,000
- Commission rate: ₹4 per ₹1,000
- Calculation: 500 × ₹4
- Total commission: ₹2,000
The applicable maximum commission is ₹2,000. Therefore, the total amount payable is ₹5,02,000, excluding any applicable delivery charges.
Are GST Charges Included in SBI DD Commission?
Yes. SBI's published Demand Draft issuance charges are already inclusive of GST. This means customers do not need to add another 18% GST to the commission amounts listed in the issuance-charge table.
However, there is an additional charge for postage or courier delivery when a customer requests an online Demand Draft to be delivered to their address. SBI lists this delivery charge as ₹50 plus GST.
It is important to distinguish between the DD issuance commission and additional services such as delivery or cancellation, as their tax treatment may differ.
Can You Get a Free DD From SBI?
Some account types include DD waivers or a monthly free quota. Salary package accounts and certain premium current accounts commonly get such benefits, but the limits differ by account and can be revised. Ask your home branch which concession applies to your account type instead of assuming.
How to Get an SBI Demand Draft
At a branch
1. Collect the DD application form from the counter.
2. Fill in the beneficiary's name exactly as they want it printed, the payable city or branch, the amount and your details.
3. Pay the amount plus commission by debit from your account or by cash.
4. Sign the form, submit it with your ID if asked, and collect the DD and receipt.
If you pay in cash, generally only smaller amounts are accepted (commonly up to ₹49,999), and PAN is needed for cash transactions of ₹50,000 and above. Ask your branch for the current limit.
Through SBI Net Banking
Log in, open Payments/Transfers, go to Other Payments/Receipt, and choose Issue Demand Draft. Then pick whether you will collect it from a branch or want it delivered. Menu names can change, so follow the on-screen options if they look different.
Validity and Other Rules
- A demand draft is valid for three months from the date of issue. After that it can be revalidated through the bank.
- Check the beneficiary's name and payable location before you leave the counter. Corrections after issue are not simple.
- Keep your receipt until the DD is paid. You will need it for cancellation or a duplicate.
Final Word
For most people the SBI DD commission is a small fee, between ₹25 and ₹2,000. Work out the amount using the slab table, remember GST is included, and check the exact total on your receipt. For the latest charges, refer to SBI's official schedule of charges at sbi.co.in.
Disclaimer: SBI DD charges are subject to change. Please confirm the latest fees and applicable terms with SBI before applying.