A bank authorization letter is usually written by an account holder to the bank manager. The purpose of writing this letter may vary with, case to case. Some write it to allow their family members or business partners to do monetary transactions while others draft such letters to operate their closed bank accounts.
An authorization letter is also written to give power of attorney to a specific party. Each bank has its own requirements so it is advised to contact your bank directly to identify the need for an authorization letter.
How to write a bank authorization letter?
An authorization letter is a legal paper that is written by a person or a group of persons to transfer the authority to someone else for a particular purpose. It gives legal permission to do something that is commonly not allowed. Such a letter is usually given when a person is physically not present. The main reasons for issuing the authorization letter could be medical problems, legal bindings, and financial issues.
The first thing that you should keep in mind is that a bank authorization letter is a formal document. The accent of the letter should be formal and you should avoid using informal terms in such letters. You have to be careful about your intonation.
A polite and professional emphasis is recommended. On the left side of the page, start by putting your name and address. You have to mention the date also.
Be careful about the date! You can’t afford such silly mistakes in an authorization letter.
It is mandatory to mention the name of the recipient. In the authorization letter for a bank, the recipient is the branch manager. You can also use the common phrase “To Whom It May Concern”. This will avoid any confusion.
In order to keep it simple, we have summarized some essential points.
The tone or the accent of the letter: Keep the accent of the letter to formal. An authorization letter is a business letter. There should be no compromise over the formal style of the letter.
The date of the letter: Make sure you specify the correct date. This will ensure the awareness of the writer and saves you from future difficulties. You must write the full year on the date. For example, use 2020, not just 20.
The body of the letter: Try to keep it as short as possible. You must use simple vocabulary throughout the letter. Keep it brief and talk only about the subject.
Your points must contain straightforward details. Like any other formal letter, you need to provide complete information in your authorization letter for the bank as well.
Accuracy is most important in writing such letters. You must read and check it once before concluding it. At the end of the letter, the following details are usually mentioned.
- Your full name
- Your signature along with a hand-written date under it.
- Attach a photocopy of an ID proof issued by the government.
Parties Involved in a Bank Authorization Process.
First of all, we should understand; “What is a party?” in the context of authorization letter. A party can be a single person or a group. They are the owners of the accounts in the bank. A party may have a personal account or a business account. The business account can also be termed as a party.
There are 3 parties involved in such situation. This includes the First Party, the person granting authority. Second Party is the bank usually. Lastly, the Third Party is the person receiving the authority.
The first party writes a letter to the second party to authorize the third party.
The first party explains the rights which the third party can exercise. The third-party is either an individual or a corporation.
Suppose the second party is not known then the authorization letter for a bank account can be addressed as “To Whom It May Concern.”
The third party’s actions are binding for the first party. The first party is responsible for the activities of the third party under his or her authorization.
Different Purposes of Bank Authorization Letters
There are different objectives for writing an authorization letter. You may need to write such a letter to the bank for various operations related to your account. Some common reasons for writing an authorization letter to the bank are mentioned below-
- If you want the bank to hand over your account statement to some else
- When you want to close your account
- If you want to change the nominee or add another nominee to your account
- When you wish to transfer your account to a different branch
- To activate your account if it is frozen
If your bank asks you to write an authorization letter and you have no idea about that then do not worry. The bank authorization letter format is very straightforward. Here, we included some sample letters for your convenience.
Feel free to download and use it according to your needs.
Sample Authorization Letter for Bank Statement
The Branch Manager
This is to inform you that I have a current account (account number – XXXXXX) in your branch. I need the account statement at regular intervals to keep a check on monetary activities but my health is deteriorating day by day due to which I am unable to visit your branch often. So, I want to authorize my son, Pulkit Saxena, to collect the account statement. I do not have any objection if my son collects the statement on my behalf.
Kindly take the needful action as early as possible. I would be very grateful to you for your help in this case.
Sample Bank Authorization Letter for Account Closure
The Branch Manager
I would like to inform you that I had opened a savings account in 2014, with account number – XXXXXX. Now, I am not in a situation to continue the transaction in that account as it was a salary account and I quit that job 2 months ago. I am returning all the items including the ATM card, passbook, and cheque book.
It’s a humble request to transfer the leftover balance in my another account through a demand draft. There would be no deduction if you transfer it through NEFT with the details mentioned below. In view of my position as acknowledged above, I request you to kindly arrange to close my account soon.
Sample Authorization Letter for Account Transfer
With due respect, I want to inform you that my savings account is in your Lajpat Nagar branch (account number – XXXXXXX). Since my family has shifted to Sarojini Nagar hence it becomes quite difficult for me to visit your branch often. It would be helpful if you transfer my account to the Sarojini Nagar branch as I am facing inconvenience in operating it.
Kindly facilitate immediately for this transfer and provide me with a confirmation mail once the transfer is done.
Sample Authorization Letter for Operating Bank Account
This is to bring your kind attention on a very important matter that I currently have a savings account ( account number- XXXXXX) in your bank, due to professional needs I have to travel out of town many times in a month, which affects the day to day payments of my business. Hence I want to authorize my brother, Mohit and my business partner, Rohan to operate my account on my behalf.
I already gave the cheque book along with ATM to Mohit. I request you to allow him to withdraw the funds. Please contact me for any kind of formality or doubt.
Sample Letter for Change of Nominee
With regards, I want to inform you that I have a savings account (account number – XXXXXX) in your branch. My wife Deepti is a nominee for this account since the time of opening. Now I want my brother Rahul as a nominee for my savings accounts as well as fixed deposits. I am attaching an ID proof of Rahul in order to prove his identity and address.
Therefore, I request you to kindly change the nomination and add my brother Rahul as a nominee. I will be very pleased with your service.
Sample Authorization Letter for Bank Account Verification
I am writing this letter to seek your attention on a regular formality work. I want to open a savings account in your bank. Due to my heart problems, I am unable to make my physical presence in your branch. I authorize my son Alok Sukla to submit my documents that are required for the verification. I have self-attested all the documents with my signature on each document. Your officials may visit our residence for any verification.
Hence I request you to verify all the documents and open my account with my son as an authorized person. I will be very much indebted for your help in this case.