Demand Draft DD stop payment Letter to Bank for cancellation

Cancellation of Demand Draft (DD) (stopping payment of DD) only happens under special circumstances unlike stopping payment of cheque, which is rather easy. 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:

i) If you have the original demand draft then you can return it to the bank - requesting for cancellation and refund of money.

ii) In case, you have lost the demand draft for any reason viz. misplaced it, it got stolen, it is destroyed by mistake, etc., then you will 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.

Here is a format of request letter to the bank for cancellation of DD. Each bank might have their own application form for this.

TEMPLATE

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

From

(Name of DD/Account-holder)

(Address)

(Phone Number)

(Email Id)

To

The Branch Manager

(Name of the Bank)

(Name of the Branch)

(Branch Address)

Sub.: Request for Cancellation of Demand Draft 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 ..................... (IFSC: ................).

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 anymore.

I am enclosing herewith the original copy of the Demand Draft for your records and cancellation purpose. I am also enclosing herewith a self-attested copy of my PAN and Aadhar card for verification purposes.

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 the future.

I further agree and undertake to indemnify your bank against all claims, demands and losses suffered by the bank because 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)

Encl.: As above