Step-by-Step Guide to Cancelling a Demand Draft

A Demand Draft (DD) is a secure method of payment issued by banks. However, there may be situations when the draft is no longer required, issued with incorrect details, or the purpose of payment is cancelled. In such cases, you can apply for a DD cancellation and claim a refund from the bank. This guide explains the process step by step.

Step 1: Gather the Required Documents

To cancel a demand draft, you will need:

• The original demand draft
• A DD cancellation letter addressed to the bank manager
• Your bank account details (if refund to account is requested)
• Valid ID proof (if the DD was purchased in cash)

Step 2: Write a DD Cancellation Letter

A written request is necessary for cancellation. The letter should include:

• Demand Draft number
• Date of issue
• Amount
• Beneficiary’s name
• Your contact and account details

This ensures the bank has a proper record of your request.

Step 3: Submit the Request at the Bank

Visit the issuing bank branch and submit:

• The original DD
• Cancellation letter
• Any required ID proof

The bank official will verify the details before initiating the refund.

Step 4: Pay Applicable Charges

Banks usually charge a small cancellation fee, which may vary depending on the amount and bank policy. The fee is deducted from the refund.

Step 5: Refund Process

Once cancellation is approved, the refund is processed either:

• By crediting the amount back to your bank account, or
• By giving cash (only for cash-purchased DDs within the allowed limit).

Refunds are generally completed within 2–5 working days.

Important Points to Remember

• Always keep the DD number and receipt safe until cancellation is complete.
• If the DD is lost or misplaced, additional documents and an indemnity bond may be required.
• Double-check beneficiary and amount details before requesting cancellation to avoid delays.