GK
BANKING AWARENESS AND SEBI
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Stop payment
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Performs no action
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Not act on the request
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Note caution and will advice the payee to contact purchaser of the draft
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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: -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.
Detailed explanation-3: -Your bank draft is irrevocable as soon as you hand it over in payment. After that, you can’t cancel it.
Detailed explanation-4: -If you lose your DD, you need to sign an Indemnity Bond in stamp paper for the issuing bank. A copy can be helpful to present when you visit the bank. The bank will take some time to process the payment. Some banks clear payments for lost demand drafts in one week while others wait until the expiry date of the DD.