Legal Question in Banking Law in India

i have made a Demand Draft from oriental Bank of commerce in the name of some college, but then i decided not to take admission in that college. Now Bank is asking to get it written from the college in the back of the DD that 'Allowed for cancellation' and get it sealed from college.

Is there any RBI guidelines for this, when i am in possession of the draft why should i get it written from the college and in the first place why would college write such a thing. Please suggest if there is any guidelines.


Asked on 5/11/16, 6:09 am

2 Answers from Attorneys
Dr Katta Venkata Rama Krishna Drkattavrk

1) If the DD has not been delivered to the College, the Bank is wrong in asking u to seek endorsement of the payee.

2) Complain first to OBC HO followed by Ombudsman.

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Answered on 5/11/16, 8:03 am
Fca Prashant Chavan Expert Edge LLP

11.05.2016

Dear Sir / Madam,

Demand Draft - Promise to pay on demand when presented. You should ask the Bank to provide you with a copy of their prevailing policy comprising rules and regulations for cancellation of Demand Drafts. In my opinion, since the original draft made by you is in your custody, it has not been presented for payment. You should submit an application to the Bank stating the reason for cancellation of the DD in brief, and requesting the Bank to credit the DD proceeds less cancellation charges, if any to your A/c. If you had taken the DD by paying cash to the Bank, it is advisable and recommended to attach the counterfoil of the DD pay-in-slip which bears your signature and matches with the application for cancellation. Some banks do follow a practice of requesting beneficiary confirmation for cancellation.

Regards,

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Answered on 5/11/16, 9:50 am


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