Bank Correspondences :
A bank is a financial institution the main business of which is to receive deposits from the public and to grant loans to them. With the modern advancement in business world the banks have to undertake other functions as well. A bank is judged by its financial stability and the efficiency with which it carries out its various functions. As some of these functions are accomplished by means of letters, the technique of writing these letters requires to be cultivated. As in other business letters, the essential elements of successful bank correspondence are brevity, accuracy, clarity, secrecy and courtesy and tact.
Bank correspondence may take place between the following :
Letters exchanged between the Bank and the customers : Letters from the Bank to its customers include replies to enquiries and complaints and to requests for overdrafts and loans. On the other hand letters from the customers to the banker consist chiefly of requests for opening accounts, enquiries about interest rates, status enquiries, application for loans and overdrafts, standing instructions regarding making payments etc. While drafting these letters the customer should try to express briefly and provide accurate information. The Bank while drafting their replies should follow the general principles of a business letter noted above and should not use technical language not commonly used.
Letter issued from the Head Offices to the Branch Offices : Such letters generally contain the decision of the Head Office in regard to the granting of credit to certain customers on the recommendation of the Bank branch. If the Head Office decides not to act on the recommendations of the Bank branch the reasons for arriving at such decision should invariably be communicated to the Bank branch. This is essential so that the branch manager who often knows his customers personally may find himself in a position to convince them regarding the reasonableness of the decision taken by the Head Office.
Letters from the branches to the Head Office : These letters consist of the branch manager’s reports on the administration of the branch, on local trade conditions or on ways and means of developing branch business. These may also be in the form of recommendations for the appointment of members of the staff, their promotion, transfers, dismissals, etc., on recommending the granting of advances to customers of the branch. Such letters should be accompanied by Loan Application Forms filled in by the customers. In the covering letter, the branch manager should provide his own estimate of the applicant’s business integrity, trustworthiness and his ability to reply the amount.
Letters from one bank to another : These letters comprise the status enquiries, negotiations of bills of exchange, granting of letters of credit, etc. and to matters which are of common interest to banks. In these letters technical terms which are common in the business of banking are generally used.
The specimen letters of bank correspondence are given as under.
- Letter Regarding An Application to Open A Current Account
- Letter Regarding Pass Book to Be Made Up
- Letter Regarding Issuing A Certificate of Balance
- Letter Informing A Customer that His Current Account is Overdrawn
- Letter Asking Bank to Explain The Reason to Dishonour A Cheque
- Reply to The Letter Asking Bank to Explain The Reason to Dishonour A Cheque
- Letter Enquiring About The Rate of Interest on Fixed Deposit
- Reply to The Letter Enquiring About The Rate of Interest on Fixed Deposit
- Letter Instructing A Bank for Stopping Payment of A Cheque
- Reply to The Letter Instructing A Bank for Stopping Payment of A Cheque
- Letter Regarding Dishonoured Cheque Referred to Solicitors
- Letter Regarding Enhancement of Interest
- Letter to A Customer for Dishonoured Cheque
- Letter Returning An Unpaid Cheque
- Letter of Instruction for Remittance
- Letter in Compliance of The Instruction for Remittance
- Letter Enclosing Receipts
- Letter Intimating The Remittance
- Letter Asking to Deliver The Pass Book
- Reply to The Letter Asking to Deliver The Pass Book
- Letter Asking for Overdraft Facilities
- Reply to The Letter Asking for Overdraft Facilities
- Letter Instructing The Bank to Purchase Securities
- Letter Intimating The Purchase of Securities
- Letter Procuring Acceptance
- Letter Regarding Protest for Non Payment
- Letter Requesting for Issue of The Letter of Credit
- Letter Requesting A Bank to Issue A Sterling Draft
- Letter Regarding Confidential Enquiry as to The Status of A Client
- Reply to The Letter Regarding Confidential Enquiry as to The Status of A Client
- Letter of Complaint Regarding Mistake in The Account
- Reply to The Letter of Complaint Regarding Mistake in The Account
- Letter to Bank Regarding The Draft
- Reply to The Letter to Bank Regarding The Draft
- Letter Informing about The Non-Receipt of Draft
- Letter Requesting Bank to Accept Documentary Bill
- Favourable Reply by The Bank
- Letter Providing Instruction to A Foreign Bank
- Letter to A Customer to Arrange for Securities to Cover Overdraft
- Reply to The Letter of Inquiry for Facilities Offered by The Bank
- Letter from The Branch Office to The Head Office Recommending Loan
- Reply to The Letter from The Branch Office to The Head Office Recommending Loan
- Letter Regarding An Overdraft Account
- Letter Regarding Withdrawal of Credit
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