Demand Draft DD stop payment Letter to Bank for cancellation

Cancellation of Demand Draft (DD) i.e. stopping payment of such DDs, only happens under special circumstances unlike stopping payment of Cheque which is rather simple. Once the Demand Draft is issued by the bank and you have given it to the party for encashment, then it will not be possible for the bank to cancel it for you.

DDs are cancelled only in few situations like :

a) if you have the original demand draft then you can return it to the bank - requesting for cancellation and refund of money;

b) in case you've lost the demand draft for any reason like misplaced it, it got stolen, it's destroyed, etc, then you'll have to produce the proof of original DD issued - a photocopy of it, some banks might insist on additional documents as a proof of DD lost i.e. police FIR copy, affidavit, undertaking, etc.

Do enquire with your bank first about the documents requirement as per your situation.

Following request letter to bank for cancellation of DD is a sample template, each bank might have their own application form for this.

FORMAT

Date: ...........................

From

(Name of Person/DD/Account-holder)

(Address, Tel. No., Email id)

To

The Manager

(Name of the Bank)

(Name of the Branch)

(Branch Address)

Sub.: Request for Cancellation of Demand Draft

Ref: DD Number .................. dated ....................

Dear Sir/Madam,

I am a customer of your bank having savings account number ....................... and customer id ...................... I had earlier obtained a Demand Draft from the bank bearing number .............. dated ................... for a sum of (amount) favoring (name of the party), which was issued to me on my request.

I hereby kindly request you to cancel the above mentioned DD and refund the amount thereof to me. The refund amount can be credited to my savings account bearing number ...........................

Reason of cancellation: Since the transaction has been cancelled with the party to whom the said Demand Draft was to be given, there is no more requirement of the DD.

I am enclosing herewith the original copy of the Demand Draft for your records and cancellation purpose.

Appropriate charges for cancellation of the said Demand Draft may kindly be debited to my said savings account with your bank.

I have read and understood the terms and conditions of the bank with regard to cancellation of Demand Draft and I agree/undertake to abide by the same at all times, including any amendments thereto in future.

I further agree and undertake to indemnify your bank against all claims, demands and losses suffered by the bank as a result of this cancellation of demand draft.

Kindly do the needful in this regard and oblige.

Thanking you!

Yours faithfully,

signature

(Name of the DD/Account-holder)