Q1.
Write down the accounting entries passed while issuing a
DD/PO ?
Ans-
Q2. Write notes –
a) DD printing process
b) DD commission
Ans- a) DD printing process
How to make Demand Draft
1. Fill the form– Visit any bank and ask for a demand draft application
form or fill the form online.
2. Form Details– You need to fill up the details like the mode in which
you want to pay through cash or from your account using cheque. in
whose favour the DD is to be made (beneficiary), the amount , the
place where DD will be encashed, cheque number,your bank account
number, your signature etc
3. Demand draft charges– The bank will provide the demand draft once
you submit the form along with the money/cheque and the demand
draft charges. The charges vary from bank to bank
4. Pan card details– If amount exceeds more than Rs 50,000 and you
are paying my cheque then PAN card details needs to be submitted.
Make Demand Draft by filling Form at bank
Name in whose favor DD is required or to whom you want to pay: The
University of Kanpur
City where DD is payable: Ahmedabad
Draft amount: 5,000
Branch name where DD is applied for Bangalore
Amount of commission : Rs 370
Name of applicant: Anil Kumar, 4/4 M G road Bangalore
b) DD commission
Demand Draft charges of some of the popular Banks in India
Name of the Bank Demand Draft Charges
Up to Rs.5,000 - Rs.25
Rs.5,000 to Rs.10,000 - Rs.50
State Bank of India* Rs.10,000 to Rs.1 lakh - Rs.5 per Rs.1,000 (Min. Rs.60)
Above Rs.1 lakh - Rs.4 per Rs.1,000 (Min. Rs.600; Max.
Rs.2,000)
Up to Rs.50,000 - Rs.75 (Rs.50 via Phonebanking)
HDFC (Through bank) Rs.50,000 to Rs.1 lakh - Rs.2.50 per Rs.1,000 (Min. Rs.100)
Above Rs.1 lakh - Rs.2 per Rs.1,000 (Min. Rs.250; Max.
Rs.5,000)
HDFC (Through Up to Rs.1 lakh - Rs.30
Third-party DD up to Rs.50,000 - Rs.100 (Limit per
netbanking) customer ID per day)
Up to Rs.25,000 per day - Nil
ICICI Bank Above Rs.25,000 - Rs.3 per Rs.1,000 (Min.Rs.75; Max.
Rs.15,000)
At Axis Bank- 15 DDs free per day, after which Rs.50 per
Axis Bank DD
At other locations - Rs.1 per Rs.1,000 (Min.Rs.25 per DD)
From HSBC Bank -
Up to Rs.1 lakh - Rs.100**
HSBC Rs.1 lakh and above - 0.1% of DD amount (Max. Rs.2,500)
Non-bank locations (correspondent banks) - 0.3% of DD
amount (Min. Rs.100)
Non-bank locations (inter-branch transfers)- Free
Up to Rs.5,000 - Rs.50
Rs.5,000 to Rs.1 lakh - Rs.3 per Rs.1,000 (Min. Rs.50; Max.
Bank of Baroda Rs.300)
Above Rs.1 lakh - Rs.5 per Rs.1,000 (Min. Rs.500; Max.
Rs.15,000)
Punjab National Bank Non-Individuals (General public) -
Up to Rs.10,000 - Rs.40
Above Rs.10,000 - Rs.4 per Rs.1,000 (Min. Rs.50; Max.
Rs.12,000)
Individuals (Urban, semi-urban, & metro branches) -
Up to Rs.10,000 - Rs.35
Above Rs.10,000 - Rs.3.50 per Rs.1,000 (Min. Rs.40; Max.
Rs.12,000)
Individuals (Rural branches, pensioners, & senior
citizens***) -
Up to Rs.10,000 - Rs.30
Above Rs.10,000 - Rs.3 per Rs.1,000 (Min. Rs.30; Max.
Rs.12,000)
Students (Education/exam fees only****)-
Up to Rs.5,000 - Rs.20
Above Rs.5,000 - Normal charges applicable
Q3. Write steps involved in cancellation of demand draft ?
Ans- Cancellation of Demand Draft
Once you create (Demand Draft) DD, the amount will be deducted
immediately from your account. If for any reason, you want to cancel
the DD and want to get the deducted money back into your account,
you must have to go to bank. There is no online facility in any banks in
India to cancel the DD.
If you already have original DD, there can be two cases.
1- You got the DD by paying cash- If you got the DD by cash deposit,
you need to submit original DD as well as receipt of cash payment.
Amount will be refunded to you in cash immediately with some
deduction of amount (around Rs 100-150).
2. If you paid the amount of DD from your account- In this case you
just need to submit original DD with filled cancellation form. Amount
will be credited back into your account with some cancellation charge
of around Rs 150.
3. If you don’t have Original DD with you (you may have lost the DD in
your home or it may get lost in postal service etc), then the process of
refunding or cancelling the DD it tough work.
To cancel the DD and if you don’t have the original DD with you, you
need to sign Indemnity bond in stamp paper for the bank. After that,
most of the bank refund the amount with taking some time i.e within
one week, but some bank will take time till expiry date of DD.
Q4. Explain briefly the processes involved in issuing a cheque book to
a customer with proper flow diagrams ?
Ans-
