What is the Full Form of DD?

2 minute read
DD Full Form

The full form of DD is Demand Draft. One of the financial tools used to simplify payments is the demand draft. It is utilized to start transactions between banks. It is a negotiable instrument that promises to pay a certain sum of money to the designated recipient. Demand drafts may only be issued by banks and individuals are not permitted to issue their own DDs. It is frequently used when both parties are not familiar with one another.

Also Read: What is the Full Form of CBS?

Demand drafts offer more security than cheques. This is so that the drawer may pay before writing out the cheques. This is because a cheque may be written without verifying that there are enough money in your bank account, whereas the drawer must make payment before issuing a bank draft to the bank. Cheques may therefore bounce, but drafts ensure safe and prompt payment. Demand Drafts are known as such because they are payable on demand.

Also Read: What is the Full Form of EMD?

Characteristics of DD

  • It is a safe method of receiving payment.
  • Typically, it lasts for three months.
  • The transfer takes place between banks.
  • It facilitates payment.
  • Like with cheques, it might potentially be disregarded.

Also Read: Career in Banking 2023

People Involved in DD

  • Drawer: A demand draft maker who approaches a bank.
  • Drawee: The bank that delivers money to the receiver is known as the drawee.
  • Payee: The individual who shows the DD to the bank in order to receive payment.

Also Read: What is the full form of EDC

Demand Draft Usage

  • When a transaction will be made between two strangers or those who lack confidence, a demand draft will be employed.
  • Demand drafts assure complete payment.
  • Like cheques, demand drafts guarantee no bounce. For instance, the majority of institutions only take cash and DD payments due to the DDs’ dependability.

This was all about DD full form. Visit the General Knowledge page to discover more intriguing articles about full forms. Get in touch with the experts at Leverage Edu in order to kickstart your study abroad journey. 

Leave a Reply

Required fields are marked *



25,000+ students realised their study abroad dream with us. Take the first step today.
Talk to an expert