The Cancellation of Cheque Letter is a crucial document used in Indian banking operations when an account holder needs to stop payment on a previously issued cheque. This document becomes necessary in various situations, such as when a cheque is lost, stolen, or needs to be voided due to payment disputes or changes in payment arrangements. The letter must conform to Indian banking regulations and the Negotiable Instruments Act, 1881, requiring specific information including the cheque number, date, amount, and payee details. Banks in India typically require this formal written request to process a cheque cancellation, and the document serves as evidence of the account holder's instruction to stop payment. The letter should be submitted promptly to ensure the cancellation is processed before the cheque is presented for payment.

1. Sender's Details: Full name, account number, and contact information of the account holder

2. Bank Details: Name and address of the bank branch where the account is maintained

3. Date: Current date of writing the letter

4. Subject Line: Clear indication that this is a cheque cancellation request

5. Cheque Details: Specific information about the cheque including cheque number, date, amount, and payee name

6. Cancellation Request: Clear statement requesting the cancellation of the specified cheque

7. Reason: Brief explanation for the cancellation request

8. Account Holder's Signature: Signature matching the bank's records