raghu 28 January 2015

Demand draft cancellation - need help

Hello Sir/Madam,

On 24th Jan 2015 I purchased a DD at SBI Bank for Rs780000/- and paid around Rs3200 as exchange rate for the DD.

Later I realized that DD was not required at all as third party would accept the local cheque as well.

When I checked with the Bank on cancellation of the DD, they are telling me that they can do this but I need to pay additional Rs100/- . I am okay with paying the cancellation charges of Rs100. But the catch is that they are saying they won't refund the Exchange rate amount (Rs3200) that I've paid for the DD creation.

Though I did a mistake of not checking up with the third party on the mode of payment, I would like to know how to go about on this.

What do the RBI guidelines say wrt the cancellation of the DD ? Do RBI mandates that banks should refund he exchange rate the consumer has paid while availing the DD ?

What do the SBI bank guidelines say on refund of exchange rate ?

Any quick help or suggestion on this is much appreciated.

Regards,

Raghu

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5 Replies

raghu 29 January 2015

Hello All,

Can you please respond to my query and help me out. Thank you.

Regards,

Raghu

Sunil S Nair (lawyer) 31 January 2015

Have you spoked to the branch manager make an application to him find what he has to say. The applicant for getting issued a Bank Draft is known as the purchaser of the draft whose signatures and address appear on the application submitted to the Bank/Branch as the time of getting the draft. The payee of the draft is beneficiary. In case, the draft has not been sent to payee and there is no marking as to show that the draft has been sent to payee, the purchaser of the draft can only get the payment of draft by cancellation. Full amount will be refunded minus exchange charged at the time of issuing the draft and charges, if any for cancellation. It is so because of the fact that draft is not a bearer instrument. If such would have been the case and the draft is dropped by you some where and the person who gets hold of the draft may come to bank and get the payment by cancellation. The payment for cancelled draft is made by the Bank duly verifying the signatures of the purchaser on the application form.

raghu 03 February 2015

Hello Suni S Nair Sir,

Thank you so much for your response.

Yes, I've spoken to the SBI Branch manager on the same day and he told me that cancellation is possible but no exchange charged will be returned. Further he told me that for cancellation I need to bear Rs100 towards cancellation charges.

When I checked recently with the SBM (yes SBM) manager at different locality about this issue, I came to know that it is possible for cancellation of the DD (with exchange charged returned to the purchaser of the DD) but it is under the discretion of the branch manager -

If that were the case, what do the RBI guidelines or SBI guidelines say about this. All customers must be treated the same way I believe.

Btw, the DD is still with me -

Regards,

Raghu

Sunil S Nair (lawyer) 06 February 2015

Raghu as replied earlier your amount cannot be charged more by bank only cancellation charges can be deducted

raghu 09 February 2015

Thanks Sunil S Nair Sir for your response.

I approached the bank again last friday and approached the branch manager. Branch manager contacted the controllers of SBI and was told that exchange money cannot be reversed with the cancellation of the DD.

Please treat this issue to have closed - Will approach this forum again if in case I need any help. Thanks everyone.

Regards,

Raghu