An "Affidavit for Loss of Banker's Cheque" is a legal document executed in India when a Banker's Cheque (BC) or Demand Draft (DD) has been lost, stolen, or misplaced.
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This affidavit is a prerequisite for the bank to issue a duplicate instrument or to credit the amount back to the applicant's account.
Legal and Financial Safety:
Since a Banker's Cheque is a prepaid instrument, it is as good as cash.
Therefore, banks require a notarized indemnity-cum-affidavit to protect themselves against any future claims if the original instrument is found and encashed by someone else.
In India, this is typically printed on Non-Judicial Stamp Paper of the value prescribed by the specific state's Stamp Act.