A foreign currency demand draft is one of the methods of transferring money overseas. To make payments abroad, foreign currency drafts can be issued.
Banks in India will issue you a foreign currency demand draft (DD) in major foreign currencies, your beneficiary ( friend or relative) can directly deposit the foreign currency demand draft in to his/her overseas saving or checking account. The demand draft are sent for collection. Collection period varies depending on the local clearing regulations and country where the demand draft is drawn.
A Demand Draft, like an Electronic Transfer, is an ideal way to send a gift to family or friends overseas. A foreign currency draft is similar to foreign currency cheque and it is one of the methods of transferring money overseas. Banks( eg Citibank, ICICI, SBI, Indian Bank etc ) can issue you a Demand Draft in any of the major foreign currencies, which can be conveniently deposited into a specific overseas account.
You can send the foreign currency demand draft to a beneficiary who will receive the funds upon banking the draft into his/her account abroad.
Wire transfers is a quick way to transfer money from one bank to another, but it is expensive.
The draft can be drawn up to any amount subject to limits prescribed by RBI. You can now avail DD facility to make payments for various purposes like:
- Payment of college fees for studying abroad
- Gift remittance to a friend or relative
- Payment of application fees for various exams like TOEFL , GMAT etc.
- Payment for surgery and medical treatment abroad
- and all other permitted purposes as per the RBI guidelines.
How can I get a foreign currency draft in India?
Banks issue foreign currency drafts for any individual. Here is the list of few banks where you can get foreign currency draft in India.
- HDFC Bank
- Canara Bank
- ICICI Bank
- State Bank of India
- Indian Bank
- Co-operative Banks (some banks)
Demand Drafts can be issued in the following currencies Great Britain Pounds (GBP), UAE Dirhams, United States Dollars (USD), EURO, Japanese Yen (JPY), Australian Dollars (AUD), Canadian dollars (CAD), New Zealand Dollars (NZD), Swiss Francs (CHF), Hong Kong Dollars (HKD), Singapore Dollars (SGD), etc.
What are the charges for making Foreign Currency Demand Draft ?
ICICI Bank Foreign demand draft charges:-
ICICI Bank offers foreign currency demand drafts to be drawn in favour of the beneficiary. You can get a Foreign Currency Demand Draft for a fee of Rs. 200/- plus applicable service tax.
ICICI Bank offers the Foreign Currency Demand Draft in the following currencies: USD, GBP, SGD, EURO, CAD, AUD.
HDFC Foreign demand draft charges:-
You can get a HDFC Foreign Currency Demand Draft (FCY Demand Drafts), charges are
- Rs. 200 flat for upto USD 500 or equivalent.
- Rs. 300 flat for above USD 500 to USD 10000 or equivalent
- Rs. 500 flat for above USD 10000 or equivalent
HDFC Bank offers the Foreign Currency Demand Draft in the following currencies: USD, GBP, EURO, JPY, AUD, CAD, NZD, HKD, CHF and SGD.
Citibank Foreign demand draft charges:-
Citibank Bank offers foreign currency demand drafts and process cheques payable in USD, GBP, Euro, SGD, CAD, AUD, JPY. You can get a Foreign Currency Demand Draft for a fee of Rs. 300/- plus applicable service tax. Learn more about Citibank India Foreign Currency Draft, Where to get foreign currency draft
Issuance of foreign currency drafts depends on the Bank which issues foreign currency drafts, Check with your bank for availability.