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Foreign Currency Demand Draft
At a Glance
A Foreign currency demand draft is a negotiable instrument used by banks to facilitate payment.
There are many ways for an NRI to send money to India and one of the most common ways is through foreign currency demand drafts. Foreign currency demand drafts need to be drawn in favour of the beneficiary and can be used to make different kinds of payments.
Features and Benefits
DBS Treasures offers many avenues to remit money to India and one of them is the foreign currency demand draft. A foreign currency DD has several benefits:
- It is a low-cost option though you do have to pay a minimal fixed fee and applicable service tax
- They cannot be misused because the beneficiary’s details are always mentioned
- They can be issued in various currencies like USD, GBP, EUR, AUD, SGD, etc.
- They can be drawn up to any amount per the Foreign Exchange Management Act (FEMA) rules
Process / Time to transfer
Here’s an outline of the process and time for sending money through a foreign currency DD:
- You can download the demand draft request form (payment application form) by clicking here
- A typical request form will ask you for the following information:
- Name of the recipient
- Name of the sender
- Amount to be transferred
- The location where the transferred money needs to be paid
- The mode in which transferred amount needs to be paid. It could either be in cash for though a bank account
- How the money will be paid to the bank
- Time taken for the money to be remitted is generally between 7-28 days
- If a demand draft is lost, one can always request for a duplicate
How to Apply
Open an NRI Savings Account
A Relationship Manager will reach out to you shortly.
Frequently Asked Questions
Sending money to India through a demand draft is safe because it is issued in the name of the beneficiary. So even if the draft is lost or stolen, it cannot be misused.
Currency conversion charges are applicable to convert the amount to Indian rupees. The prevailing exchange rates will be considered.
You can apply for a foreign currency DD online. Alternatively, you can download a demand draft request form (payment application form) and submit it at the DBS Treasures branch.
A foreign currency demand draft can be used to make payments in other countries. This could be towards university fees or home loan payments. It could also be used for medical expenses and to pay for the cost of migration to other countries, etc.
If a foreign currency demand draft is lost or misplaced, you can request a duplicate demand draft. Cancelling a demand draft and issuing a new one will incur a fee.