The most commonly used financial method for transferring money is a Demand Draft. A DD is created by deducting money from the account and instantly transferring the amount you have raised for. A DD cancellation letter is written to the bank in case a person wishes to withdraw a DD. In order to raise a cancellation request, the person will have to write an application for cancellation of demand draft and should follow the DD cancellation letter format for a smooth process.
- Why is a DD Cancellation Letter to Bank Raised – Reasons and Procedure
- How to Write a Demand Draft Cancellation Letter?
- Demand Draft Cancellation Letter Format
- Sample Application for Cancellation of Demand Draft
- Frequently Asked Questions on DD Cancellation Letter
Just like other leave application for work, letter to a friend, acknowledgement for assignment, etc., letters to be sent to the banks also have a format. For the DD cancellation letter to the bank, read the below article and know the format for it.
Why is a DD Cancellation Letter to Bank Raised – Reasons and Procedure
A Demand Draft cancellation letter to the bank is written to withdraw the raised DD for the transaction. While writing a DD cancel application, the person needs to explain the reason behind it. The reasons for a demand draft cancellation letter can be wrong information of payee details, deactivation of bank account, etc.
In order to cancel the raised demand draft, the person will have to write a DD cancel application to the bank where you have applied and submit it by visiting the bank.
- After you have submitted your demand draft cancellation letter along with the cash payment receipt, you will retrieve your payment.
- If you have paid cash, then you will receive it in cash after a small cancellation charge deduction.
- If you have paid through cheque, then the paid amount will be credited to the bank account.
How to Write a Demand Draft Cancellation Letter?
Writing a bank letter is very crucial because most people don’t understand the tone of writing an application. There is a format to every kind of bank application; similarly, there is a demand draft cancellation letter, and people need to be aware of the format.
To help people write an application for cancellation of demand draft with ease, we have provided a few pointers and samples. Read below to get the samples of writing a DD cancellation letter to a bank.
- The language and tone of the dd cancellation letter should be formal and professional.
- Do not forget to add the subject, your bank details correctly, the reason for the DD cancellation and your name.
Demand Draft Cancellation Letter Format
An application for cancellation of demand draft should be written by the person who had submitted it. The person needs to follow a specified format in order to write a DD cancellation letter to a bank.
A DD cancel application must be submitted by visiting the bank along with the payment receipt. The application for cancellation of demand draft must include the proper bank details, bank address, the amount of DD and the DD number. For your better understanding of the demand draft cancellation letter format, we have provided a few samples below.
Sample Application for Cancellation of Demand Draft
Check the below-provided samples of DD cancellation letters for a better understanding of the demand draft cancellation letter format.
Date: 11th February 2022
The Branch Manager
Market City Branch
Subject: Cancellation of Demand Draft
I had raised a DD request on 20th January 2022 favouring Mr. Namit Bijlani for Rs. 60,000 at the City Lane branch of your bank. Due to the closure of the receiver’s account, I request you to kindly cancel my DD with DD No.34567. I further ask that the funds be credited to my account number 123456789000 at your branch.
In addition, I authorise the bank to collect any and all fees associated with the cancellation of the demand draft.
- Original DD receipt
Name of the bank
SUB: Cancellation of My DD with No.____
You are hereby requested to withdraw the above-mentioned Demand Draft with no ___, which was issued by your bank on ____ for rupees _____ in favour of _____. The DD has not been used due to _____ reasons.
I would like you to cancel the DD and put the funds into my savings account with ______ (A/c number) number. If any charges are incurred, they must be paid in cash.
Frequently Asked Questions on DD Cancellation Letter
Can I cancel my demand draft online?
No, a demand draft cancellation cannot be made online. It is compulsory for the person to visit the bank for dd cancellation.
Can I visit any branch for the DD cancellation?
No, the person will have to visit the same branch for the DD cancellation. The demand draft can only be cancelled by the person who had applied for it and not someone on behalf of him.
What is the deadline for cancelling a DD?
A demand draft can be cancelled within 3 months from the date of issue. According to the Reserve Bank of India (RBI) regulation, a demand draft is valid for three months from the date it was issued by the bank. You can revalidate the DD after the third month by writing to the issuing bank.