Are you looking to know about DPN full form? If yes then you came to right blog.

In this article you get to know about DPN full from, DPN limitation and other details related to DPN.

DPN full form in banking refers to DEMAND PROMISSORY NOTE.



In simple words DPN means its document between debtor and creditor when there is no fixed period of repayment of loan. In This case Creditor is a Bank or Financial Institution and Debtor is a person who took a loan from Bank or Financial Institution.


  1. DPN should be signed by the debtor (borrower)
  2. DPN should be dated.
  3. DPN must mention the name of debtor and creditor.
  4. DPN contain the debt amount in figures as well as in words.
  5. DPN must contains Interest rate.
  6. DPN should be compulsory to be stamped as per Indian Stamps Act.
  7. DPN do not carry any specific maturity date.
  8. DPN is not signed by the Guarantor.


As per the law of limitation act 1963, DPN limitation period is three (3) years from the date of execution. In simple words it means if loan not repaid within 3 years becomes time barred after three years from the date of loan documents. The Bank or Financial Institution has to get the fresh documents for extending period or they need to take AOD (Acknowledgment of Debt) otherwise need to file a suit to recover your money before expiry of that three-year period.


Dear reader in this article you get to know about DPN full from, DPN meaning, DPN law of limitations, Demand Promissory Note in Banking. If you have any query regarding this article kindly comment below.  

What is DPN in finance?

DPN in finance refers to it is a an instrument deposited by the borrower as a promise to make a repayment to the lender.

What is the validity of DPN?

DPN validity is 3 years from the date of transaction.

Is promissory note a legal document?

Yes promissory note is a legal document.

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