Demand Draft Cancellation Form: Download and Fill Online

Demand Draft Cancellation: To acquire a draft, an individual typically pays the amount upfront to the bank, demand draft cancellation charges which then issues the draft. The purchaser subsequently dispatches the draft to the payee’s location through either regular or registered post. The bank, responsible for issuing the draft, imposes a commission for providing this service.

Demand Draft Cancellation Guide

i) Non-Delivery of Draft to the Payee: There are instances where a draft purchased from the bank is not dispatched to the payee for various reasons. In such situations, the purchaser is entitled to a refund of the draft amount. The purchaser can request the bank to annul the draft and return the amount. demand draft cancellation charges

ii) Bank’s Obligation: The bank is obligated to reimburse the draft amount to the purchaser, but this action is contingent upon the bank’s satisfaction that the draft has not been handed over to the payee. The contract between the bank and the payee remains incomplete until the draft is delivered, making it revocable until the actual delivery to the payee.

Demand Draft Cancellation

iii) Legal Provisions: As per Section 46 of the Negotiable Instrument Act, the completion of a promissory note, bill of exchange, or cheque is achieved through delivery, either actual or constructive. In the case of an order instrument, mere endorsement without delivery does not transfer the title to the endorsee. Delivery of the instrument is indispensable. Thus, unless the draft is delivered to the payee, the payee has no legal claim to the draft, and the purchaser can request the cancellation and refund of the draft amount.

iv) Bank’s Discretion to Decline Draft Cancellation: If the bank suspects that the draft has already been delivered to the payee, it may reject the cancellation request. This is because the contract between the bank and the payee is considered complete upon the delivery of the draft. The bank becomes liable to pay the draft amount to the payee and cannot cancel the draft without the payee’s confirmation.


What is the procedure for cancelling a demand draft?

To cancel a demand draft, the purchaser should visit the issuing bank, fill out a demand draft cancellation form, and provide the draft for cancellation. The bank will verify that the draft has not been delivered to the payee and may refund the amount.

Can anyone cancel a demand draft?

Yes, the purchaser of the demand draft has the right to cancel it. However, the cancellation is subject to the condition that the draft has not been delivered to the payee.

Is there a time limit for cancelling a demand draft?

Generally, there is no specific time limit for cancelling a demand draft. However, it is advisable to initiate the cancellation process as soon as possible to avoid any potential issues.

What documents are required for demand draft cancellation?

The purchaser typically needs to provide the original demand draft, a duly filled cancellation form, and identification documents as per the bank’s requirements

Is there any fee for cancelling a demand draft?

Banks may charge a nominal fee for the cancellation of a demand draft. The exact charges can vary between banks.

Sanjeet Kumar is a graduate of Journalism, Psychology, and English. Passionate about communication - with words spoken and unspoken, written and unwritten - he looks forward to learning and growing at every opportunity. Pursuing a Post-graduate Diploma in Translation Studies, he aims to do his part in saving the 'lost…

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