Bank - Demand Draft Charges In Icici

ICICI’s charges are comparable to other private banks but 40–60% higher than public sector banks (SBI, PNB). This reflects private banks’ strategy of cross-selling digital alternatives and covering higher operational costs. 5. Digital Alternatives and Cost-Benefit Implications ICICI Bank actively encourages digital transfers over DDs:

Author: [Your Name/AI Assistant] Date: [Current Date] Subject: Banking Services & Fees Analysis 1. Abstract Demand Drafts (DDs) remain a crucial negotiable instrument for secure inter-bank and inter-city fund transfers in India, despite the rise of digital alternatives. ICICI Bank, one of India’s leading private sector banks, levies specific charges for issuing and canceling demand drafts. This paper provides a detailed breakdown of ICICI Bank’s demand draft fee structure as per the latest schedule of charges, compares it with public sector competitors, analyzes the impact on different customer segments (e.g., savings account holders, non-customers), and discusses the declining relevance of DDs in the digital payments era. 2. Introduction A demand draft is a prepaid instrument issued by a bank on behalf of a customer, directing another branch of the same bank or another bank to pay a specified sum to a named beneficiary. While real-time gross settlement (RTGS), national electronic funds transfer (NEFT), and immediate payment service (IMPS) have reduced DD usage, DDs are still required for certain applications (e.g., university admissions, exam fees, tenders) where electronic proof of payment may not be accepted. demand draft charges in icici bank

ICICI Bank categorizes its DD charges based on: (a) customer relationship (account holder vs. non-account holder), (b) issuance mode (branch vs. online request), and (c) destination location (domestic vs. international). The following data is based on ICICI Bank’s standard schedule of charges (as of 2025–2026). Note: Rates are subject to change; applicable GST is additional. 3.1 For Savings or Current Account Holders | Draft Amount | Charges (INR) | GST (18%) | Total Payable (INR) | | :--- | :--- | :--- | :--- | | Up to ₹10,000 | ₹50 | ₹9 | ₹59 | | ₹10,001 – ₹1,00,000 | ₹75 | ₹13.50 | ₹88.50 | | Above ₹1,00,000 | ₹3 per ₹1,000 (min ₹100) | 18% of charge | Variable | | Non-ICICI Bank DD (collection) | ₹150 – ₹250 + courier | 18% | Variable | ICICI’s charges are comparable to other private banks

| Draft Amount | Charges (INR) | GST (18%) | Total Payable (INR) | | :--- | :--- | :--- | :--- | | Up to ₹10,000 | ₹100 | ₹18 | ₹118 | | ₹10,001 – ₹1,00,000 | ₹150 | ₹27 | ₹177 | | Above ₹1,00,000 | ₹6 per ₹1,000 (min ₹200) | 18% of charge | Variable |