BANK CORRESPONDENCE

Finance is the life blood of business. To perform

trade operations banks has to correspond with
• The customers
• The head office
• Other banks
Correspondence with customers (opening of a
bank account)
• Account opening form duly filled in, has to be
submitted.
• Incase of firms, all the partners must sign the letter and
enclose a copy of the partnership deed.
• Incase of corporate enterprises, the articles of
association and memorandum of association and a copy
of the resolution permitting the company to open the
bank account should be submitted.
• The letter has to be signed by the authorized signatories.
• It is a formal letter, so nothing irrelevant has to be
included.
A customer requests his bank to stop payment
of a cheque
• Give particulars of the cheque number, date on which
drawn, payee’s name account.
• Mention the reasons for stopping payment.
(most cases cheque has been misplaced)
• Request the manager to take necessary steps in the
matter.
Customers request for overdraft if credit facility is
not provided by the supplier
Bank refusing overdraft – due to bank policies,
 Correspondence with head office
• Proposals for advances and OD facilities
• Letters concerning their staff – their transfers,
promotions, dismissals, etc
• General administration of the branch
• Letters suggesting ways and means of developing the
branch business
Correspondence with Other banks:
Status enquiries
Letters of credit
Acceptance of bills on behalf of customers
Negotiating bills etc.
 INSURANCE CORRESPONDENCE
• Need for insurance
-overcome the loss / damage in goods / business thru
natural calamities
• Types of insurance
- fire insurance (damage caused thru fire)
- Marine insurance ( damage caused thru marine
losses)
- life insurance (assurance)
Correspondence relating to Life insurance covers the
following situations:
• Enquiry regarding terms and conditions
• Submission of proposal
• Acceptance or refusal of proposal
• Reminders from insurance corporation to pay premium
• Notice of the lapse of policy
• Proposal for surrendering a policy or converting it into
a paid up policy
• Revival of a lapsed policy
• Assignment of a policy
• Loan against a policy.
 Correspondence of a company secretary:
Secretary and his duties:
- acts as a vital link b/w company, BOD, share holders and
govt.
- Formulation of long range and short term policies and
programmes.
- Raising funds thru public deposits, public issues, private
placements, etc.,
- Looks after secretarial functions, such as filing various
company returns with registrar of companies and other
authorities, registration of transfer and transmission of share,
correspondence with share holders, etc
- Acts as a corporate development planner, responsible for
identifying opportunities for expansion, diversification,
mergers and takeovers, etc.