A Demand Draft (DD) is a secure method of payment, but sometimes the draft may not be needed or might have been issued with errors. In such cases, the customer can cancel the DD and request a refund. To initiate this process, banks require a DD cancellation letter along with the original draft.
What is a DD Cancellation Letter?
A DD cancellation letter is a formal request submitted to the issuing bank for cancelling an unused demand draft and claiming a refund. It mentions key details like the DD number, issue date, amount, and beneficiary’s name. The letter acts as proof of your request and helps the bank process the cancellation smoothly.
Why is a DD Cancellation Letter Important?
The cancellation letter ensures there is a proper written record of your request. It prevents misuse of the draft, allows the bank to verify your identity, and helps initiate the refund process. Without a cancellation letter, banks may not process your request as quickly.
Format of a DD Cancellation Letter
Here’s the standard format for writing a DD cancellation letter:
To,
The Branch Manager
[Bank Name]
[Branch Address]
Subject: Request for Demand Draft Cancellation
Respected Sir/Madam,
I request you to kindly cancel the demand draft issued in my name and refund the amount. The details of the DD are as follows:
- Demand Draft Number: [Insert DD Number]
- Date of Issue: [Insert Date]
- Amount: [Insert Amount]
- Beneficiary Name: [Insert Beneficiary Name]
I am enclosing the original demand draft with this request. Kindly process the cancellation at the earliest and refund the amount to my account/cash, as applicable.
Thanking you,
Yours faithfully,
[Your Name]
[Your Account Number]
[Contact Details]
Sample DD Cancellation Letter
Here’s an example for better understanding:
To,
The Branch Manager
State Bank of India
MG Road Branch, Bengaluru
Subject: Request for Demand Draft Cancellation
Respected Sir/Madam,
I am writing to request the cancellation of the demand draft issued from my account. The details are as follows:
- Demand Draft Number: 4589321
- Date of Issue: 02/09/2025
- Amount: ₹15,000
- Beneficiary Name: ABC Institute of Technology
The draft is no longer required. I am enclosing the original demand draft along with this letter. Kindly refund the amount back to my savings account (Account Number: 123456789).
Thank you for your assistance.
Yours sincerely,
Rahul Sharma
Contact: 9876543210
Final Thoughts : A DD cancellation letter is a simple but important document that helps ensure smooth cancellation and refund of a demand draft. Always include the DD number, date, amount, and beneficiary details in the letter, and don’t forget to attach the original draft. Using a proper format makes the process quicker and hassle-free.
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