Sample application format to bank to cancel cheque before maturity date


Want to know the procedure to cancel a post-dated cheque? Want to know the method to write an application for cancellation of a bank cheque before the maturity date? Read this article to know when you can cancel a PDC and what are the legal issues involved in this process.

A cheque is one of the most popular and most used negotiable instruments. Every business, whether on a large scale or small scale, uses it to make and receive payments from time to time. Many times we issue a post-dated cheque to the payee. A PDC or post-dated cheque means a cheque which bears a date in the future. A person can issue PDC for various reasons. Some of the reasons are highlighted below:

  • The Drawer has to make the payment but he does not have enough balance in his bank account at present. So he puts a future date on the cheque when he expects to hold sufficient balance in his bank account.
  • You have to make advance payment for an item to be delivered to you in the future. In such a case, you can handle a PDC to the payee.

But what to do if you have already issued a post-dated cheque and you have to cancel its payment later on? You might be interested to stop the payment of a PDC because you are still not having a sufficient bank balance in your account or have not received the item for which you had made an advance payment.



How to write an application to bank manager to stop PDC cheque payment


Date

To,
The Manager,
ABC Bank,
XYZ City

Subject: Stop payment of cheque no. 123456 dated 16.08.2019

Respected Sir/ Madam,
I request you to stop payment of cheque no. 123456 dated 16.08.2019, issued to M/S Om Prakash and Sons amounting to Rs. 50,000. I had issued it as an advance payment but have not received the ordered items so far.

Thanking you

Yours sincerely,
Your Name
Current account number
Signature



Please note that you have to stop the payment before the due date or maturity date else it will be treated as dishonored or a bounced cheque and you will have to bear all legal consequences as applicable in our country. You can also cancel a blank cheque using the above provided format.



Some banks also charge nominal fees in lieu of cancellation of the cheque. Please confirm this with your bank authorities. Some banks provide a simple form which should be filled and submitted at the counter. In such a case, you need not write any application. Just fill-up that form.

Please understand that you cannot cancel the cheque yourself; rather, you have to forward instructions to your bank not to entertain any such PDC and treat it as cancelled.


Article by Nidhi
Nidhi is a freelance content writer with 7+ years experience. She has great passion to write on valuable topics so as to provide accurate information to her readers. She is also keen to provide employment to all Indians and so posts various job openings too in this website.

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