Bank Correspondences

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.

  1. Letter Regarding An Application to Open A Current Account
  2. Letter Regarding Pass Book to Be Made Up
  3. Letter Regarding Issuing A Certificate of Balance
  4. Letter Informing A Customer that His Current Account is Overdrawn
  5. Letter Asking Bank to Explain The Reason to Dishonour A Cheque
  6. Reply to The Letter Asking Bank to Explain The Reason to Dishonour A Cheque
  7. Letter Enquiring About The Rate of Interest on Fixed Deposit
  8. Reply to The Letter Enquiring About The Rate of Interest on Fixed Deposit
  9. Letter Instructing A Bank for Stopping Payment of A Cheque
  10. Reply to The Letter Instructing A Bank for Stopping Payment of A Cheque
  11. Letter Regarding Dishonoured Cheque Referred to Solicitors
  12. Letter Regarding Enhancement of Interest
  13. Letter to A Customer for Dishonoured Cheque
  14. Letter Returning An Unpaid Cheque
  15. Letter of Instruction for Remittance
  16. Letter in Compliance of The Instruction for Remittance
  17. Letter Enclosing Receipts
  18. Letter Intimating The Remittance
  19. Letter Asking to Deliver The Pass Book
  20. Reply to The Letter Asking to Deliver The Pass Book
  21. Letter Asking for Overdraft Facilities
  22. Reply to The Letter Asking for Overdraft Facilities
  23. Letter Instructing The Bank to Purchase Securities
  24. Letter Intimating The Purchase of Securities
  25. Letter Procuring Acceptance
  26. Letter Regarding Protest for Non Payment
  27. Letter Requesting for Issue of The Letter of Credit
  28. Letter Requesting A Bank to Issue A Sterling Draft
  29. Letter Regarding Confidential Enquiry as to The Status of A Client
  30. Reply to The Letter Regarding Confidential Enquiry as to The Status of A Client
  31. Letter of Complaint Regarding Mistake in The Account
  32. Reply to The Letter of Complaint Regarding Mistake in The Account
  33. Letter to Bank Regarding The Draft
  34. Reply to The Letter to Bank Regarding The Draft
  35. Letter Informing about The Non-Receipt of Draft
  36. Letter Requesting Bank to Accept Documentary Bill
  37. Favourable Reply by The Bank
  38. Letter Providing Instruction to A Foreign Bank
  39. Letter to A Customer to Arrange for Securities to Cover Overdraft
  40. Reply to The Letter of Inquiry for Facilities Offered by The Bank
  41. Letter from The Branch Office to The Head Office Recommending Loan
  42. Reply to The Letter from The Branch Office to The Head Office Recommending Loan
  43. Letter Regarding An Overdraft Account
  44. Letter Regarding Withdrawal of Credit

Bank Correspondences

Letter Asking A Donation
Letter Asking A Favor
Letter Asking for More Details
Letter Asking for Donations
Letter Denying of Dealership
Letter for Change of Address
Letter for Distributorship
Letter for Employment
Letter for Hotel Reservation
Letter for Letter of Credit
Letter for Line of Credit
Letter for Product Launch
Letter for Promotion
Letter for Retirement Congrats
Letter for Scholarship
Letter for Settlement of Bill
Letter for Tender
Letter for Testimonial
Letter of Agreement
Letter of Assurance
Letter of Credit
Letter of Enquiry
Letter of Order
Letter of Persuasion
Letter of Sympathy
Letter Offering Discount
Letter Related to Advertisement
Letter Related to Despatch
Letter Related to Training
Letter to A Foreign Buyer
Letter to Pen-Friend
Letter to Police
Letter with Order
Letter with Quotation
Letter Writing
Letters about Company Shares
Letters by Clubs and Societies
Letters by Landlords & Tenants
Letters for Appointment of Dealers
Letters for Business Relations
Letters for Buying and Selling
Letters for Credit & Collection
Letters for Foreign Travel
Letters for Lease & Tenancy
Letters for Loan & Borrowing
Letters for Transfer & Assignment
Letters for Insurance
Letters Noting Discrepancy
Letters of Condolence & Sorrow
Letters of Regret
Letters Regarding Maintenance
Letters Regarding Payment
Letters Related to Employees
Letters to Local Corporation
Letters to Postal Authorities
Letters to The Editor
Letters Used in Real Estate
Letters With Postal Department
Letters With Railways Authorities

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