Today I cancelled a demand draft issued from State Bank of India and here is the procedure to do so:
1. Write an application to the branch manager stating the reason for cancellation and the mode of refund i.e. cash or account transfer. I opted for cash.
2. Affix a revenue stamp on the back of DD to be cancelled.
3. Put your signature partly on the stamp and partly on the demand draft. You will have to put another signature on the DD just below it.
4. Submit the cancellation application along with the DD to the branch manager and get the application stamped.
5. Now submit the stamped application along with the DD to the cash counter to get the refund.
6. There is a cancellation charge of Rs.100/- that will be deducted from the DD amount and the rest will be returned back to you. This cancellation charge is fixed irrespective of the DD amount.