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How to Cancel a Demand Draft from Bank?


Cancellation of a Demand Draft (DD) will be processed by Bank Officer based on the certain guidelince issued by the Reserve Bank of India and some internal verification procedure. Whenever we wanted to cancel a DD either it was drawn using the Cash or with a Account Payee Cheque, you need to contact the Branch from where you have collected the DD. Banker will deduct a sum of amount as DD Cancellation Charges from the DD bearing amount and the remaining amount will refund to you on the spot You can collect the refund amount either in Cash mode or a Banker Cheque mode if you want to deposit into your Bank Account. Before that you need to accomplish the following details to satisfy the Banker that you are the genuine drawer of the DD.

  1. Draft a Letter to the Branch Manager of the Bank requesting about the cancellation of the DD with a reason.
  2. Mention the refunding method either in Cash or Banker Cheque.
  3. Enclose the DD in Original if you have lost the DD at lease enclose the counter foil or write the DD is missing in the Letter to the Branch Manager.
  4. Your signature on the Letter to the Branch Manager should tally with the signature that you have singed in the DD Voucher while requesting for a DD.
  5. Submit the Letter to the Bank Office, then he verifies the documents and gives you either a Token for Cash refund or a Banker DD by deducting the Cancellation Charges.
  6. In some banks you need to paste a 1 Rupee Stamp on back side of the Withdrawal Form, if you are requesting the refund as Cash. So, keep a 1 Rupee Stamp with you.

If you have requested a Banker Cheque then ask them to prepare in favour of a person name in which account you are going deposit for collection. Otherwise you can simply wait for a couple of minutes to collect your cash by returning the Token to the Cashier, which is provided by the Bank Officer.

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{ 108 Comments... read them below or add one }

Naga Sai Chaitanya said...

Is there any time span for this process....if so....please mention the duration of time from the time of dd processing

Venkkatesh K said...

There is not time limit for Cancelling the DD only the DD should not be cleared.

Unknown said...

I want to cancle the dd if not cleared? How much time does it take for dd to ne cleared???

Venkkatesh K said...

The Demand Draft (DD) will be credited into the Beneficiary Account within 2 working days if the DD Issued Bank is available in their local area otherwise it will be cleared within 7 to 15 days based on your Bank Instrument Clearing Policy.

Aslam Mohammed said...

Hi Venkkatesh,

How can I cancel dd it was issued in month of July and money also got deducted from my account I was knowing the procedure of cancelling DD
Please help me out to cancelling DD.

Regards
Aslam

Venkkatesh K said...

Go through this article if any doubt in any stage ask that particular point.

Aslam Mohammed said...

What if the DD is cleared and how can I cancell the DD

Venkkatesh K said...

Once the DD is cleared by the Beneficiary it can not be Cancelled.

Aslam Mohammed said...

Thanks

anish said...

Hey
When DD is removed is money instantly deducted from the account ?

Venkkatesh K said...

When you draft a DD you have to pay the Cash to the Bank and Bank will issue the DD with their Amount.

Neha said...

Is the procedure same for online issued DD.

prithivihari said...

Bank manager is asking for the counterfoil tho I have my original draft. Is tat mandatory tat the counterfoil must be produced during the cancellation process.? And tis the case in IOB.
Reply asap

Venkkatesh K said...

For Online Issued DD also the procedure is same but take the print out of the applied form from your Online Account.

Venkkatesh K said...

Counterfoil is not mandatory but the signatory must be same in the Request Letter against the Application Form.

Unknown said...

suppose somebody issues a dd from a bank branch and gives it to the person whom this dd is meant for, now the person who has issued the DD goes to the bank and ask to get it cancel before the other person submits the DD at his own bank branch. i want to know if receiving the payment by DD is safe as the issuer can cancel the issued DD before the other person (receiver) submits the DD to bank

Venkkatesh K said...

You can cancel the DD with proper Documents required for it.

Unknown said...

Dear Sir, Can we cancel DD through online without going to the bank

Venkkatesh K said...

All Banks are nor providing such a service so it is advised to contact your Branch before you do.

S Gharat said...

what are the documents required for cancelling DD?? when it with beneficiary and not cleared.

Venkkatesh K said...

The following are the basic documents required for cancellation of DD.
1. DD Issued counter foil (Not mandatory).
2. Request Letter for DD cancellation (If counter foil is missing that should be mentioned in the Letter).
3. Some Banks ask the Confirmation Letter from Beneficiary of the DD.
4. Signature in the Request Letter should tally with Signature in the Application Form.

muruli lola said...

Sir, actually am going to give a dd for 1 lakh only for document purpose and again i want to cancel it and amount should be come back to my account so how i can do this process and how much time required for this and one more doubt i have i,e, am not issuing the dd to the beneficiary but am only shearing the dd number so that there is any chances to get transfer the amount to the beneficiary without hard copy of DD

Please help me with your suggestion since i need to prepare the dd in urgent my ID murulilola@gmail.com

Venkkatesh K said...

Without the Original DD no Beneficiary can withdraw the amount. And If you want to cancel the DD you can cancel with a Request Letter along with the Counter Foil. But some banks will ask to submit a Request Letter from the Beneficiary as well.

paridhi said...

I made a DD in Pune from Bank of Maharashtra. Now I am in Delhi. I need to cancel this DD. Is it possible to send the DD, counterfoil and request letter to my family in Pune and get the DD cancelled? I do not want to travel to Line just for this DD cancellation.

Venkkatesh K said...

Obviously, but mention in the letter that you can not reach the branch and request the Branch Manager to hand over the instrument balance to the person carried the letter and mention in his name in the letter.

Unknown said...

Sir, can i cancel a DD when its with beneficiary and he has not encashed it? Actually I suspect a fraud/scam for a DD issued yesterday which has not been cleared yet. Can i somehow stop that payment?

Venkkatesh K said...

Read the already answered Comment to know the answer.

MAYANK SOOD said...

I went to the bank today for cancellation of the DD mentioned above & they refused to cancel without beneficiary's NOC. The beneficiary refused to return the DD & NOC. Im feeling helpless, the amount has still not been transferred to the beneficiary but I am unable to stop the transaction.

Venkkatesh K said...

As i told you the NOC Letter from the beneficiary is mandatory as per the Bank. Contact a Lawyer in this regard to take an action.

Satwant Singh sattu said...

how can i know that the other party is still cleared my demand draft or not

ramanuj bhattacharyya said...

I am giving a draft to my college on 20tfeb but there call me today they can not accept the DD for reason . so I need to knw how will I refund the cash and the DD I have make is other SBI account other branch I have SBI account not that branch so please tell me plz

Venkkatesh K said...

Write a Request letter to your Branch (Draft taken Branch) enclose the following document along with the letter

1. Photostat Copy of the Counter Foil of DD Application
2. Confirmation Letter From the Beneficiary of the Draft to cancel the DD.

Mention your Account Details to transfer the Cancelled amount to your account. and Courier the Document to the Branch(Draft taken Bank).

ramanuj bhattacharyya said...

Only a letter and a DD slip any other

vamsee krishna Maddu said...

Sir thank u for writing this article which clarifies almost 90% doubts of a first timer like me.this is the best article i found...

Unknown said...

Sir
I did DD and i courier respective address but in that the DD is lost..
Now how can i take money back without DD now i don't have any documents about it i have only DD Number Plz give me solution for this

Venkkatesh K said...

Contact the concerned Banker.

Kanush Dhawan said...

If i had made a DD in favor of any insurance company. But now company is not accepting it due to wrong name of company. Can i cancell that DD? And get my cash in hand?

Venkkatesh K said...

You can encash by submitting the Original DD along with a Request Letter & Counter Foil.

Arman Khan said...

Do i know in which account dd is credited if yes what is the procedure?

Arman Khan said...


How can we trace the details of the account in which DD is credited

Venkkatesh K said...

Debit the Ledger account from which the DD is drawn. (Generally Bank or Cash Ledger)

Jadgdish Chander Tiwari said...

I had made a DD of Rs.5000/- DD bearing No.860245 from ICICI Bank Gurgaon dated 19th May 2007 and lost.
On 6th August 2015, I closed the account but find that the DD neither encashed nor refunded me.
I requested to ICICI Help line - helpdesk@icicibankdirect.com, they advised me to coordinate with branch on dated 21.8.2015, from the date the branch officials are not entertained my matter neither they acknowledged that I coordinate with the branch as per the helpdesk advise.
On regular follow up, on 16.4.2016, a Bank officials told me to submit NOC from beneficiary along with affidavit on Rs.100/- non judicial stamp paper from my side and 2 nos reputed account holders signature of ICICI Bank to process the matter further action but not assure you to release the above amount.
I requested to bank officials to give me this all in writing, as well confirmation of non-encashment of the DD till date so that I MAY approached the Beneficiary for NOC because why the beneficiary will entertain me.
Banks are not given me this in writing
Please advice.
Thanks and regards
ICICI Bank S/Ac-017701003365 (Closed on 6.8.2015)

Venkkatesh K said...

Writer a Request Letter to the Branch Manager to reply him for the requirements for cancellation of the DD and withdrawing the same and Post the letter to the Bank with Acknowledgement. And keep the Acknowledgement with you. After you get the acknowledgement contact a Lawyer to send a Legal notice in this regard.

Unknown said...

Sir, DD was taken by my friend for a register office.. but we dropped the thing and there is no chance to use dat DD and was having the DD with us. Now I want to cancel the DD...but the person who had taken the DD was no more...counterfoil also missed....

Can u gv me a solution how to cancel the DD and the amount to be refunded. ..

Venkkatesh K said...

You can not do anything without the DD drawn person. So, contact the Bank Manager in this regard.

Ratan Raj said...

I have made a DD in favor of XYZ Company. Is there any chance of any third person ( or ABC Company) to know whether the DD has been cashed out by XYZ company???

Please let me know ASAP...

Thanks in advance...

Venkkatesh K said...

If the third person is having the DD information with his he can know that by his influence at Bank.

Goutham said...

sir i did DD on the name of hcl i didnt submit the DD copy to the beneficiary is there any need to noc from the benificiary to cancel DD

Venkkatesh K said...

As you have the Original DD with you and you do not need any NOC just reach the Bank with your Original DD, Counter foil and a Request Letter.

Unknown said...

Sir, I did DD on the name HCL I submit the SNAPSHOT image to them. Is there any need to noc from the beneficiary to cancel DD

Venkkatesh K said...

As per Bank rules it is mandatory to obtain the NOC from the Beneficiary if the Original DD is not with the Drawer.

Unknown said...

If DD is tear of one side what can I do





Venkkatesh K said...

It is hypothetical incident just contact the concerned Bank Manager regarding this.

Ajay thakur said...

Hi sir I won a giveaway organized by Samsung and I sent them a DD of 9k as a gift tax but due to some reasons they didn't receive it in time and hence disqualified me and sent my DD back! Sir do you think bank will cancel the DD and return my money? Because it's been almost two months since they issued the demand draft. Please reply sir. thank you!

Venkkatesh K said...

If you have the Original DD and Counter foil you can cancel your DD from the Bank and can en-cash it.

Snigdha Kucharlapati said...

what if I don't have the dd, but have the receipt and want to cancel the dd?

Venkkatesh K said...

I have alredy answerd this query Read this Comment to know it

Bruce Wangkhem said...

Sir,
The dd's validity is only for 3 months. So, after 3 months time, will the amount automatically revert back to my account? Will the DD automatically cancel by itself after 3 months?

Venkkatesh K said...

The Demand Draft or DD amount will held with the Branch Office until unless either the Beneficiary or the Drawer claims it.

Noni said...

Can I get cash back for PNB non refunfable DD.

Venkkatesh K said...

You are saying that the DD is Non Refundable. Then how can you draw it back?

vijay bhaskar reddy said...
This comment has been removed by a blog administrator.
vijay bhaskar reddy said...

Sir
I lost DD in class bt cancellation process taking time for some problems third person is having the my DD that third person can take my DD amount it's possible or not sir

Venkkatesh K said...

Either the DD Drawer or Beneficiary of the DD can withdraw it through Bank Account.

Raju said...

Hi,
As I was outstation, I told my friend to take DD Rs.2lacs for Govt. Tender EMD purpose. Also, deposited the fund in his account. He had taken a DD from his account and deposited the DD for Rs.2lacs Govt. Tender EMD purpose in my company XYZ name. Now, Tender has cancelled Govt. dept refund the Original DD to me. Issue a letter that tender got cancel and back side of DD, seal and sign of govt. dept to release for payment by bank.
As the Original DD is with me, now I am not taking to my friend. We had some business fight. Can you give me a solution how to cancel the DD and the amount to be refund?
Problem is that DD has taken from his account and deposited the DD for EMD in my company Name.

Venkkatesh K said...

As per Law only the DD Drawer i.e. your friend only can get refund of the DD Amount.

Bhavesh Mehta said...

I have a dd in which i have given wrong address and want to cancel it ccan i do it

Aayush Verma said...

Sir,i need to make a dd of 70000 for college counselling.is it possible to issue a dd from delhi and cancel the same in uttarakhand? My account is of uttarakhand.

Aayush Verma said...

Sir,is it possible to generate a dd from delhi and cancel the same in uttarakhand? My abank account is from uttarakhand and i have to make dd for counselling and have to leave for uttarakhand.

Aayush Verma said...

Sir,i need to make a dd of 70000 for college counselling.is it possible to issue a dd from delhi and cancel the same in uttarakhand? My account is of uttarakhand.

Venkkatesh K said...

The DD Drawer can cancel the DD with proper document from the Home Branch of the DD Drawn only. From other Branches he/she can not cancel.

Venkkatesh K said...

Yes you can.

deepak garg said...

Dd was issued in bangalore,karnataka can it be cancelled in any branch of another state

Venkkatesh K said...

You have the answer for this query read this comment.

Mitesh Joshi said...

I want to cancel demand draft from Andhara bank.
Is there any difference for cancel process in this bank or it is similar for all?

Venkkatesh K said...

Yes it is same.

GOWTHAM RAVURI said...

Hii
I am a college student studying in westbengal as my hometown is vizag. I took scholar loan for my education in vizag (sbi) . As the current academic year has begun the college authorities advised us to pay the respective college fee through sbi collect. Since i have a bank loan the respective bank authorities issused me a demanddraft in the name of college But the college authorities are saying that they do not accept any dd's the fee payment should be done through online or should pay the amount by hand in the respective college sbi branch. As my fee payment last date is in 4 days what can i do to pay the fee. Since both the banks where i took the loan and the college bank are sbi.can i seek any help from them? Please suggest

GOWTHAM RAVURI said...

Hii
I am college student pursuing my graduation in west bengal as my hometown is vizag. I took education loan in my hometown vizag(sbi). As the current academic year is going to start .The respective college authorities advised us to pay the fee.since i have a bank loan the respective bank where i took loan issused me a demanddraft in the name of college. But the college authorities are saying that the fee payment should be made either in online through sbicollect or by hand in the respective college bank (sbi). Since the last date for the fee payment is in 5 days. How can i pay the fee ? Since both the banks the bank where i took a loan and the college bank are sbi is there any help can i seek from them? Please suggest some help.

Venkkatesh K said...

Bank followed the correct procedure as per Education Loan Norms. Even you would have the option to credit the Loan amount in your or your Guardians SB Account. But that is not done. In this case you have to options.

1. Contact your College Principle or Secretary to accept the DD (or)
2. If the College Authority is not Ok with the DD just ask them to issue NOC Letter for the Cancellation of the
DD with proper reason as the DD is issued in favour of the College. Then approach your Bank with the
NOC Letter, Original DD, and request letter to transfer the Loan amount to either in your SB Account or
in your Guardian Account.

Unknown said...

I took a dd today how to cancel that and whats the time limit to cancel

Venkkatesh K said...

The DD can can be cancelled at any time after the date of Issue of the DD. And cancellation process explained in the above comments. Read from above.

Venkkatesh K said...

Yes you can. Just verify your Bank Account Statement against the DD Amount and Date.

Venkkatesh K said...

Along with that Confirmation Letter from the Beneficiary to cancel the DD is required.

Venkkatesh K said...

By asking the Banker with the DD details from where you have drawn the DD.

sagar mandal said...

I made a dd of wrong name and i want to a get a dd with the name i want ? , so can this process be made in few hours?

Venkkatesh K said...

You can change the DD within few hours but you have to write a letter and the Charges will be levied.

Unknown said...

Sir , i made dd of 16630$ on the 24th june but bcoz of some reason now i want to cancel it. But i made that DD from private agent. Nd now he told me that , i will be get 50-60 thausand less from it. So , i want to knw about the cancelation charges. Nd can i cancel it from another bank ? Plz help me...

Venkkatesh K said...

You can not cancel a DD from other than the Branch that you drawn from but in some special cases you may based on the rules of the Banks and the DD Charges may vary based on the Amount of DD and time.

Bhanusairam Narala said...

Sir I had taken dd of amount 25k will this amount will be given to hands or will be deposited in bank account. I took dd in sbi

Venkkatesh K said...

A DD is similar to an Account Payee Cheque so in order to withdraw a DD you have to present the Cheque in your Bank.

Arvind Baloda said...

Sir,
I issued a dd from karnataka bank in gurgaon and can I withdraw money from Delhi branch

Venkkatesh K said...

Only the beneficiary can withdrawn the DD only from the Location mentioned in the DD.

Unknown said...

I have made a dd with wrong amount can I change the amount without changing the dd no. Coz I have already filled that in a application form... Reply asap coz its very urgent...

Venkkatesh K said...

Once the DD is issued it can not be changed but we can cancel it and take a new DD.

Unknown said...

Sir can i cancel new firm DD But that firm cancelled then what is the procedure to cancel firm dd

Venkkatesh K said...

For the Firm DD you have to write a request letter in firm Letter Head.

Unknown said...

Sir
I have teared dd on the side of date column and pasted, whether it is acceptable or not...

Venkkatesh K said...

As per per latest information as on date even a small fold is there in the Cheque or DD it will be rejected as most of the Banks are following this rule in India. Hence, you have to obtain a new DD.

Mirza Baig said...

Hi sir..i made d.d in favour of university australia and they told me they are not accepting then i cancel that d.d with required document which is listed above..i want to know that how much time it will take to cancel its almost 5 days but till now no cancelletion...sbi bank

Venkkatesh K said...

Usually the cancellation process will be done between 1 hour to 7 days based on the criteria.

Unknown said...

I made dd for some documentation purpose from Mumbai.and now I am in kerala can I cancel dd from here ?SBI bank

Venkkatesh K said...

You have to contact the Branch from where you have taken the DD.

HIMANSHU RAI said...

I made a DD from union bank of India now I want it to cancelled can I get my refund money in my other sbi account and also benificiery noc is mandatory?? Because it will not issue noc

Venkkatesh K said...

Mr. Himanshu Rai,
Only from which account you have drawn the DD, it will be credited back to the same account otherwise you can request for cash back. It is mandatory to get NOC from the beneficiary for the cancellation of the DD for most of the banks.

HIMANSHU RAI said...

The amount is Rs 70000 shall they refund in cash

Venkkatesh K said...

Based on their Banking Policy mostly they will either direct deposit to your account or issue a Banker's Cheque.

Unknown said...

I had done a DD to CA authority payable at Mumbai. But I think it has to be done payable at Chennai. DD is with me. If name is same does the payable at location matter.

Venkkatesh K said...

Absolutely, the place of DD to be drawn is matter. So, you have to cancel the wrong DD and take a new one.

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