How to Cancel a Bank Draft: A Comprehensive Guide

Bank drafts, also known as cashier's checks, can be a valuable tool for making payments, particularly in larger transactions. However, there may be instances where a bank draft needs to be cancelled. This guide outlines the process of cancelling a bank draft, important considerations, and what to do if the draft has already been deposited.

Understanding the Process of Cancellation

Cancelling a bank draft is a process that typically involves several steps and can vary depending on the bank's policies. Understanding the steps involved can help ensure that the process is completed efficiently and accurately.

1. Contact the Bank

Begin the cancellation process by contacting the bank where the draft was issued. This can usually be done through the following methods:

Telephone Online banking Visiting a branch in person

2. Provide Necessary Information

To proceed with the cancellation, you will need to provide the bank with the following details:

The draft number The amount The date of issue The name of the payee

3. Verify Your Identity

The bank will require you to verify your identity to ensure you are authorized to cancel the draft. This may involve:

Answering security questions Providing identification

4. Complete Required Forms

In some cases, you may need to fill out a cancellation form or provide a written request to cancel the draft.

5. Pay Any Fees

Be aware that some banks may charge a fee for cancelling a bank draft. It is important to confirm any potential charges before proceeding.

6. Wait for Confirmation

After submitting your cancellation request, you should ask for confirmation that the draft has been cancelled. This process can take a few days, and you should receive documentation of the cancellation.

7. Monitor Your Account

It is crucial to monitor your account to ensure the funds are returned to your account if the draft was not yet cashed or deposited by the payee.

What to Do if the Draft Has Already Been Cashed or Deposited?

If the bank draft has already been cashed or deposited by the payee, it may no longer be possible to cancel it. In such cases, you may need to:

Discuss alternative solutions with your bank Consider reporting the draft as a lost or stolen item if necessary

In some situations, you may need to provide an official discharge on a revenue stamp on the reverse of the draft for cancellation.

The bank may request the draft to be surrendered to the issuing branch with a request letter for cancellation. If the draft is lost, inform the bank with details to prevent it from being paid and arrange for cancellation on confirmation.

Conclusion

Cancelling a bank draft requires attention to detail and adherence to the bank's policies. By following the steps outlined in this guide, you can ensure a smooth cancellation process and avoid any unnecessary complications.