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It is not possible to encash a DD anymore. Banks have stopped paying a drawee in cash to avoid fraudulent transactions. If you are the payee, when your bank receives a DD, they will make the payment to your bank account only.
Can you have a demand draft without any bank account? Absolutely Yes but at a limit depending with the bank, For walk-in customer's drafts are served with cash. Before making a DD, one has to engage the concerned officer. If their office account can deposit cash and service charges in it, and they will...
It is not mandatory that you should have a Bank Account in the Bank from where you are preparing the Demand Draft. The Demand Draft can be made by paying the Bank in Cash as well, but for Demand Drafts exceeding Rs. 50,000 the payment should be by cheque only.
If you are going to pay for the DD in cash, submit the DD form and pay cash to get the DD. If you are going to pay from your bank account, you will need to furnish those details as well before you can get the DD. The bank will immediately deduct the money and issue you the DD.
What are details that need to be provided in the DD Form? Date. Name of the applicant. Name of the recipient in whose favour the DD is to be issued. City name where the DD is payable. Bank Branch name where the DD is made. DD amount. Service fee of the bank. Signature of the applicant.