If the purchaser reports to the issuing branch the loss of the draft without any endorsement, the banker may safely refuse payment of the same because of absence of any endorsement thereon, on behalf of the payee, would deemed to be forged and title of the holder would not be considered good.
If the draft is presented for payment by some one, the banker should return it with the remark “Draft reported to be lost. Payees endorsement requires verification”
a) On receipt an application from the purchaser of the draft regarding its loss and issues of duplicate one along with the copy of GD entry, the signature of the application is verified from the original application.
b) The drawee branch is informed of the loss of draft and requested to exercise caution by letter or
telegram as desired by applicant. The telegram charges if incurred are recovered from him.
c) On receipt of confirmation from the drawee branch that the draft is still outstanding in their books and that caution is being exercised by them.
d) General Banking of Head Office to be informed about the lost DD, who will circulate about the lost instrument to our all branches. After obtaining confirmation from all branches that the DD is not/will not paid, Duplicate may be issued after obtaining stamped indemnity bond.
e) The draft is issued marked Duplicate in red ink, without altering the printed number and repeating the original number.
f) A note to this effect is made on the original form and the drafts issue register “duplicate issued in lieu of the original”.
g) Drawee branch is advised regarding issuance of the duplicate draft.