How Can I Cancel a Demand Draft?
When you need to cancel a bank demand draft, it's crucial to follow the appropriate procedures to ensure a smooth process. Here’s a comprehensive guide to help you understand the necessary steps and requirements.
General Information for Financial Transactions
If you are looking to cancel a demand draft (DD) that you have initiated from a bank, you can do so by visiting the same branch and providing your photo IDs. Banks typically allow the cancellation of demand drafts without much hassle. The process usually involves:
Visiting the Branch: You need to go to the branch where the DD was issued. Identification: Present your photo IDs to verify your identity. Processing Fee: A small fee may be charged for the cancellation. Payment Options: The amount can either be credited back to your account or provided to you in cash, subject to verification of your signature.Returning a Demand Draft That Was Deposited in Your Name
If you received a demand draft in your name and wish to cancel it, you must return the draft to the person who provided it. According to legal requirements, only the person who drew the demand draft can cancel it. Here are the steps:
Return the Draft: Hand over the demand draft to the person who issued it or provide them with the necessary details. Verification: The person will verify the authenticity of the draft and proceed with the cancellation if required.Branch-Specific Cancellation Procedures
In some instances, the branch that issued the demand draft can also cancel it. The specific requirements and processes may vary by bank. Typically, the following steps are involved:
Branch Visit: Visit the branch where the demand draft was issued. Manager’s Assistance: Speak to the manager who can guide you through the process. Proper Identification: Provide proper identification documents to verify your identity. Cancellation Fee: A nominal fee is often charged for canceling the draft. Payment Method: The refund amount can be credited to your account or provided in cash, depending on the bank’s procedures.Special Circumstances: Lost or Misused Demand Draft
If you have lost a demand draft or have concerns about its misuse, you can take the following actions:
Contact the Bank: Visit the branch and inform them about the situation. If you have the details or an image of the draft, it can be helpful to have it "put on hold." Writing Application: At least write a detailed application to the manager requesting to cancel the draft and refund the money. Cancellation Process: The bank may require an FIR (First Information Report) or a self-attested letter to proceed. After verification, the amount will be refunded to your account after deducting the cancellation charges. Online Cancellation: If your bank allows online cancellation, it can save you from any hassles associated with physical visits. Loss Declaration: If the draft is lost, fill out a cancellation form or send an email to the bank, stating that you have lost the draft and need it to be canceled and the money refunded. Provide all relevant details like the draft amount, date, and the drawee’s name.Conclusion
Whether you are canceling a demand draft that you initiated or one that was deposited in your name, it is important to follow the correct procedures. Always keep track of your draft details, and if in doubt, visit the bank branch and seek assistance from the manager. By adhering to these guidelines, you can ensure that the cancellation process is handled efficiently and without complications.
Frequently Asked Questions
Q: Can I cancel a demand draft online?
A: Yes, if your bank offers online cancellation, it can be a convenient option to avoid physical visits.
Q: What if the draft has already been paid?
A: If the demand draft has already been paid, the bank may require an indemnity bond to refund the amount after deducting any cancellation charges.
Q: What does an FIR mean?
A: An FIR (First Information Report) is a report filed with the police regarding the misuse of a demand draft.