How to Replace a Lost SBI Demand Draft: A Comprehensive Guide

Receiving a financial instrument like a SBI Demand Draft (DD) is a significant event, especially for business transactions. However, losing such a document can be distressing and challenging. In this guide, we will navigate the steps to replace a lost SBI Demand Draft, ensuring you understand the process and have all the necessary information to regain control of your financial obligations.

Understanding the Situation

First, it's essential to assess the situation. If you've lost your SBI Demand Draft issued more than 2 years ago, the bank might not be able to provide a duplicate draft. This is because demand drafts have a specific validity period, typically 3 years, after which they cease to be valid.

Steps to Replace a Lost SBI Demand Draft

Photocopy and Letter to the Branch Manager

If you possess a photocopy of the lost DD and have the necessary information, you can address a letter to the concerned branch manager. In this letter, mention the details of the instrument and attach a photocopy of the original DD. It's crucial to enclose the counterfoil of the application form filled when the original DD was issued. The bank may ask you to provide an indemnity form on a non-judicial stamp paper of a specified value.

When the Original DD Details are Known

If you know the details of the lost DD and it hasn't been encashed and is still outstanding in the bank's books, the purchaser of the DD can request a duplicate by submitting the required documents along with a letter from the payee. In case the draft is lost in transit, the entitlement passes to the payee, and their consent is required before cancellation. However, you do not need to inform the bank about this situation; you can proceed with requesting a duplicate draft.

Requesting a Duplicate Directly from the Branch

Now, you can visit the SBI branch where the draft was issued. Make a request to the branch manager that the draft has been lost and you need to get a duplicate issued in lieu of the original. If the amount is below the specified limit (Rs 5000 or Rs 10000, depending on the bank), they will check whether the lost draft is already paid or not, cancel the original, and issue a duplicate. For amounts above Rupees 10000, you might need to provide an indemnity bond and two sureties.

Bank's Procedure for Duplicate Issuance

SBI clearly instructs their staff on how to proceed in the case of a lost Demand Draft. Foremost, they require an Indemnity Bond for a duplicate issue of a Draft. For amounts above Rs. 10000, two sureties are required. The Duplicate Draft will be issued after receiving confirmation of non-payment of the original Draft by the Drawee Branch. If the customer/applicant is maintaining a KYC compliant and satisfactorily conducted account for at least 6 months as on the date of the original Draft, the requirement of sureties can be waived up to an amount of Rs. 50000. For amounts below Rs. 10000, the confirmation of non-payment is not necessary.

Time Frame and Compensation

The bank has a time limit of 14 days to issue the duplicate Draft. If a Duplicate Draft is not issued within this period, the bank will pay interest applicable to a Fixed Deposit for the corresponding period to compensate for the delay. After the issuance of the Duplicate Draft, a refund request can be made with a written request letter. The draft will be cancelled, and the amount will be credited to the applicant's account after deduction of appropriate cancellation fees.

Conclusion

Losing a Demand Draft can be a stressful experience, but with the right approach, you can replace it effectively and efficiently. Following the procedures and guidelines mentioned above, you can ensure a smoother process of obtaining a duplicate draft and restoring your financial operations.