Demand Draft is a type of negotiable instrument issued by a bank to his customer on his request ordering another bank or its other branches on any corner of the country to pay the amount specified on the Demand draft to the payee specified on the demand draft on the presentation of the same. Nowdays Demand draft is one of the popular medium of making payment as this is considered one of the safe method for payment both for the receiver and the issuer.
In this article we will learn as to how one can cancel a Demand Draft/Banker cheque. Thus when stage of draft cancellations comes the first things which comes in mind is that whether the draft will able to cancel and secondly, whether the bank would return the money back after draft cancellation. The answer is yes,for both successful draft cancel and return of money back but one should apply for its cancellation before its term of 3 months expires. Yes you read it right, the expiry of a Bank draft is of 3 month starting from the date it was prepared as stated on the top of the the draft under date coloumn.
Steps to be followed in order to cancel a Demand Draft:
In order to cancel a Demand Draft one has to write a letter addressing to the manager as to why you are cancelling the Demand Draft. You can give any reason its not compulsory to state the real reason behind cancelling the Demand Draft. A sample letter in MS-Word file format has been attached below for your convenience from where you can download the file.
Below the letter the person has to sign ( the person who is signing in the letter below should be the same person who filled the DD form an signed in the draft form at the time of preparation ) in reference to security purpose.
The Bank Charges Rs.100 as cancelling charges and return rest of your money.
In some Bank like SBI, one has to paste a one rupee revenue stamp at the back of the Demand Draft and also sign across on the revenue stamp in order to process successful draft cancellation.
So, if one goes for draft cancellation one should keep the obove points in mind for successful draft cancellation.
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