BANKING AFFAIRS

Detailed explanation-1: -If a draft is lost by the payee and he immediately sends a letter to the bank informing the same then the bank will not his caution and stop the transfer as well as bank will advise the payee to contact the payer for another draft. Was this answer helpful?

Detailed explanation-2: -However, if the draft has been lost, stolen or destroyed, the buyer may be able to cancel the draft by returning to his bank, explaining that the draft is irretrievable by either himself or the seller, and presenting to the bank the reference number or a printed copy of the draft.

Detailed explanation-3: -A Demand Draft represents a transaction that has already taken place. Hence, it cannot be cancelled once it is delivered to the payee. If the demand draft gets lost, stolen, or altered with and the funds are cashed out by the wrong person, the bank is not responsible for replacing the lost money.

Detailed explanation-4: -Where a draft is lost, the person who was the holder thereof at the time of the loss may apply to the issuing branch of the bank to give him a duplicate, giving, if required security to the branch to indemnify it against all persons whatever in case the lost draft is found again.

Detailed explanation-5: -Your bank draft is irrevocable as soon as you hand it over in payment. After that, you can’t cancel it. Even if you realize you’ve been sold a lemon, you won’t be able to stop payment.