How to Cancel a Lost Indian Bank Demand Draft: A Comprehensive Guide
Are you wondering how to cancel a lost demand draft (DD) issued by an Indian bank? Navigating the process of canceling or indemnifying a lost DD can be quite complex, but with a strategic and meticulous approach, it can be managed effectively. Here’s a detailed, step-by-step guide to help you understand your options.
Understanding the Process of Cancellation
Firstly, it's important to understand the prerequisites for canceling a lost DD. To initiate the cancellation process, you need to submit the counterfoil and prove that you are the original applicant. The branch will verify your identity based on the information provided and the counterfoil.
Submitting a Request for Cancellation and Refund
Writing a formal letter to the bank is the first step in initiating the cancellation and refund process. Make sure to enclose the counterfoil issued by the bank, provide the draft number, the date, and the payee's name. If the draft has not been encashed, you are likely to receive the refund. However, if the amount of the draft is particularly large, you may have to provide additional indemnity to the bank to cover the risks associated with the potential loss.
Handling Duplicates and Cancellation in Transit
In case the draft is lost in transit, the entitlement passes to the payee, and his consent is required before cancellation. You should not inform the bank about this; instead, you should proceed to the nearest branch and submit an application for its cancellation or the issuing of a duplicate draft.
Upon visiting the branch, the bank will ask the payee's branch to confirm if the draft has already been paid. In cases where the draft amount is below INR 5000, they can credit the amount instantly without waiting for a non-payment certificate. For amounts above INR 5000, you might need to wait for about 2 weeks to get the non-payment certificate from the Reserve Bank of India (RBI). However, if the amount exceeds INR 1 lakh, you might need to furnish a surety and an indemnity bond.
Seeking Special Assistance for High Value Drafts
For high-value drafts or if the payee belongs to a special category, you might require additional assistance. In such cases, providing detailed information or an image to the branch manager can help hold the draft temporarily, preventing misuse. The manager might ask for a written application for this.
In some cases, especially if the bank's policy permits, the cancellation of a lost DD can be done online. This process saves you from the hassle of visiting the branch and can be significantly more convenient. However, the bank may still require an FIR (First Information Report) or a self-attested letter to cancel the draft and credit the amount to your account after deducting the corresponding charges.
Conclusion
Managing a lost Indian bank demand draft can be daunting, but with careful planning and the right approach, you can successfully cancel or indemnify the lost draft. Always keep your documents organized, maintain a clear communication with your bank, and follow the prescribed procedures to ensure a smooth process.
Additional Tips
1. Always keep a copy of the counterfoil and any related documents for future reference.
2. If you suspect that your draft has been disclosed, immediately report it to the bank.
3. For online cancellation, check if your bank offers such a service and follow their specific guidelines.
4. Maintain good communication with the bank to stay informed about the status of your application and any pending actions.