Letter Writing

DD Cancellation Letter

Demand draft is one of the most used monetary ways of moving cash. It is a prepaid way. Therefore, there is zero possibility of your draft getting shamed. In fact, the bank issues a demand draft to the customer to pay a specific amount to the payee. However, sometimes it happens that some customers wish to withdraw a DD. Hence, they need to write write a DD cancellation letter to the bank.

In today’s article, we will see how to write a DD cancellation letter. Let’s get started.

 DD cancellation letter

How To Write A DD Cancellation Letter?

Knowing how to write a letter to a bank is very important. In fact, many individuals do not know the tone of writing an application. However, there is a designated format that everyone must follow. When writing to the bank, make sure to be very detailed and to use a lot of specifics. Therefore, I have compiled a few guidelines, formats, and samples for you guys.

Guidelines For Writing A DD Cancellation Letter

  • Firstly keep the format of the letter very formal.
  • Next is the tone of the letter. I must be very professional and straight to the point.
  • Address the letter to the bank manager.
  • Then add a clear subject that states the purpose of writing the DD cancellation letter.
  • Also, you can mention your DD number in the subject.
  • Moreover, add your account number, DD number, and amount of DD in the body.
  • Explain the reason for cancelling the DD shortly and crisply.
  • At last, conclude the letter formally.

Format For Writing A DD Cancellation Letter?

Complete address

Date: dd/mm/yy

The Branch Manager

Bank name

Branch address

Subject: Cancellation of Demand Draft

Dear Sir/Mam,

I am writing this request you to cancel the DD number XXXX dated dd/mm/yy for Rupees xx. This DD favours (Name of the person) at (name of payee branch). Mention the reason for the cancellation of DD.

Therefore, I request you cancel the DD and credit the amount in my account (account number) with (branch name) or else make a cash payment to me. Also, I have attached a copy of the DD for your reference.

Thank you.

Yours Sincerely,


Your name


Samples To Write a DD Cancellation Letter

Sample 1 –

56/B, Vikram apartment

Dadar Colony

Mumbai – 400014

Date: 08/08/2022

The Branch Manager


Goregaon Branch

Mumbai – 400063

Subject: Cancellation of Demand Draft

I Anupama Chopra, raised a DD request on 06/08/2022 to Miss Nalini Upadhyay for INR 30,000. Furthermore, it was deposited in the Ghatkopar branch of your bank. I am writing this letter to request you cancel the DD. 

Consequently, the receiver is closing the account that I raised a DD. Therefore, kindly please cancel the DD. Additionally, the DD number is 123456. Also, please transfer the funds back to my bank account. Moreover, I am willing to pay any cancellation fee for the DD.

Bank account number: 1120xxxxxxx9912

Additionally, I have attached a copy of the DD receipt and my bank passbook for your reference. 

Thank you

Yours sincerely,


Anupama Chopra


  • DD receipt
  • Passbook copy

Explore More Sample Letters

Sample 2 –

Plot no. 102,

Hutatma Chowk

Mumbai – 400023

Date: 08/08/2022

The Branch Manager

Bank of Baroda

JB Nagar Branch

Mumbai – 400059

Subject: Cancellation of Demand Draft

I am Vijay Shahare and I am writing this to request you to cancel my DD request. To sum up, I raised a DD to Mr Rahul Kashyap on 7th August 2022. It was INR 50,000 at the I.I.T Powai BOB branch. 

Consequently, the receiver’s details are incorrect. Therefore, I want to cancel the DD I raised. Also, I request you to transfer the funds to my bank account at 2311xxxxxxxx7659.

Additionally, the DD number is 45622. Moreover, I am willing to pay any cancellation charges(If any).

Also, I have attached the DD receipt for your reference. 

Thank you

Yours sincerely,


Vijay Shahare


  • DD receipt

What Are The Charges For DD Cancellation?

Every bank has a different DD cancellation fee. Therefore, we have listed the average cancellation fee that banks usually take.

Up to INR 5,000 -> INR 25

INR 5,000 – INR 10,000 -> INR 50

INR 10,000 – INR 1 Lakh -> INR 5 per INR 1,000

Above INR 1 Lakh -> INR 4 per INR 1,000

Frequently asked questions

Q1. How do I cancel my DD?

Answer. If you want to cancel a DD, you have to write a letter to the bank. To summarize, you need to write a letter to the bank manager requesting him/her to cancel the DD.

 Q2. What are the reasons for the cancellation of DD?

Answer. Consequently, the reasons for cancelling DD are incorrect details, the closing of an account, used mistakenly, etc. In fact, you can easily cancel it by writing a DD cancellation letter to the bank manager. On the other hand, you cannot do it online. However, some banks do give online facilities. But, you still have to visit the bank to collect the demand draft.

 Q3. What is the time limit for DD cancellation?

 Answer. Accordingly, the validity of a DD is for 3 months. Afterwards, you can re-validate it by writing an application to the bank.

 Q4. Does DD get bounced?

 Answer. Of course, DD is a safer method for transferring money. In fact, in business transactions, cheques are not usually accepted. Because there is a potential risk of fraud as the drawer and payee do not know each other. Therefore, DD is preferable here. 

 Q5. How do you convert DD to cash?


  1. The receivers have to present the draft to their bank branch.
  2. Then the bank asks for documents like bank account number, DD receipt, etc to proceed.
  3. As soon as the documents are verified, the amount will be transferred to the account. 
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