CBSE Class 12 English Business Letters Notes Set 02

Bank correspondence is the topic of this English letter writing page for Class 12, starting with a short note on what such letters are about. It has 17 sample letters in the formal business format, such as opening an account, stopping payment of a cheque, loans, overdraft facility, minimum balance and nomination, with the bank's replies.

(d) Bank Correspondence

These include letters exchanged between bank and its clients, bank's head office and branches and between two individual banks. These may be written regarding various different purposes such as to open an account, request for overdraft facility, stopping payment, regarding dishonoured cheque, to issue standing instructions etc.

Some letters of Bank Correspondence are as follow

Letter to open a current account with a bank

Excellent Construction Co Ltd
11 Moti Nagar
New Delhi
Telephone 2658473
10 April, 20XX

The Manager
Royal Express Bank
New Delhi

Subject: Open a Current Account

Sir

We want to open a current account with your bank. We are enclosing a certified copy of the resolution for your reference and appointing the Royal Express Bank at New Delhi, as our banker.

The following documents are enclosed as required by you
1. Accounts Opening Form duly completed
2. Specimen signature of the directors
3. Copies of the Company's Certificate of Incorporation and Certificate to Commence Business

I, the Chairman and Managing Director of the company, have been authorised by the Board of Directors, to sign all the cheques and other documents on behalf of the company. Please open the account and issue a cheque book, containing hundred leaves.

Thanking you

Yours faithfully
Rajiv Chaddha
Chairman & Managing Director

Letter confirming the telephonic instructions to stop the payment of a cheque

1256 Royal Street
Bandra, Mumbai
11th April, 20XX

The Manager
UB Bank
Mumbai

Subject: Confirmation of Telephonic Instruction to Stop the Payment of a Cheque

Sir

I confirm my telephonic instructions given to you in the morning today to stop the payment of a cheque, details of which are as follows

Cheque no 0177894, dated 15/04/20XX, amounting to Rs. 15380 favouring K S Finance Ltd.

Please confirm having stopped the payment of the above mentioned cheque at the earliest.

Thanking you

Yours faithfully
NK Mani

Letter to the bank for non crediting the proceeds of the cheque

137/1, Vikas Colony
New Delhi
12th March, 20XX

The Manager
XY Bank
New Delhi

Subject: Non-crediting the Proceeds of Cheque

Sir

I had deposited a cheque no 118947 dated 5/02/20XX for Rs. 16700/- drawn on State Bank of India to be credited in my saving account no 2136 with you.

I regret to note that even after a month, the amount of the cheque has not been credited in my account. You are requested to look into the matter and arrange to get the amount of cheque credited in my saving account immediately, along with the interest for the delay as per norms.

Thanking you

Yours faithfully
Sunil Sharma

As manager of a bank, write a letter to a customer informing him that his cheque has been dishonoured

XY Bank Ltd
Adarsh Nagar, Jaipur
19 March, 20XX

Mr Sunil Sharma
137/1 Vikas Colony
Jaipur

Subject: Cheque no 118947 Amounting to Rs. 16700/- Drawn on SBI (Jaipur)

Sir

With reference to your letter dated 12/03/20XX, we inform you that your above cheque was received back by us due to insufficient funds.

The cheque has since been sent to you by Registered Post dated 15/03/20XX at your corresponding address.

You are requested to consult the post office in your area regarding the non-delivery and take necessary action on your part as soon as possible.

We are always at the service of our clients.

Thanking you

Yours faithfully
RD Gupta
(Manager)

Letter from bank, sending a cheque book

Punjab Bank Ltd
7, Bhikaji Cama Place
New Delhi
25th January, 20XX

M/S Ram Prakash & Sons
Lal Market
New Delhi

Subject: Issuing a New Cheque Book

Sir

As desired in your requisition slip, we are enclosing a cheque book containing 50 leaves bearing numbers JHK1245751 to 1245800.

For the protection of your own interest as well as that of the bank, we'll be obliged if you please acknowledge receipt of the cheque book by affixing your usual signature on the appended form and send it to us by return post.

Yours faithfully
Manager

Letter from a customer, acknowledging receipt of the cheque book

M/S Ram Prakash & Sons
Lal Market
New Delhi
27th January, 20XX

The Manager
Punjab Bank Ltd
New Delhi

Subject: Acknowledgement of Received Cheque Book

Sir

This is to acknowledge receipt of the cheque book containing 50 cheques from 1245751 to 1245800 which I have counted and found correct.

Yours faithfully
PK Jhanwar

Letter of request for sanction of advance under Personal Loan Scheme for pensioners

B 29 Block 3
Paschim Vihar
New Delhi
12 January, 20XX

The Manager
Punjab Bank Ltd
New Delhi

Subject: Advance Under Personal Loan Scheme for Pensioners

Sir

I request you to grant me an advance of Rs. 100000 (Rupees one lakh only) for meeting my personal needs. I am eligible for the loan applied for under the above scheme for pensioners.

I am drawing a monthly pension of Rs. 23000 (Rupees twenty three thousand) having retired in the year 2009. The pension is being credited in my SF/CA A/c no 117219 maintained with your branch.

I agree to repay the said advance of Rs. 100000 (Rupees one lakh only) in 24 equal monthly instalments along with the interest @ 2% p. a. I agree to pay interest tax, if any, in force. The interest chargeable shall be subject to changes as prescribed by the bank from time to time. In the event of my death or for any other reason deemed fit, the bank shall have the right to recall the loan outstanding immediately irrespective of repayment period fixed.

I also agree to execute all the documents prescribed and to abide by all terms and conditions of the scheme from time to time.

Yours faithfully
Amit

Letter of authority given by a pensioner for recovery of loan

B 29, Block 3
Paschim Vihar
New Delhi
January 25, 20XX

The Manager
Punjab Bank Ltd
New Delhi

Subject: Recovery of Loan

Dear Sir

With reference to the loan of Rs. 100000 (Rupees one lakh only) granted to me by you towards meeting my personal needs, I give you my irrevocable authorisation to recover the monthly instalments commencing from the month of February from my SB/CA A/c 117219 with you in which my pension is credited.

This may be treated as a standing instruction for my SB/CA A/c.

Yours faithfully
Amit

Letter of authority given to the bank for a loan against hypothecation of assets

139/1 'B' Kranti Nagar
New Delhi
February 27, 20XX

The Manager
Punjab Bank Ltd
Kranti Nagar
New Delhi

Subject: Loan Granted to me Against Hypothecation of Assets

Dear Sir

With reference to the term-loan for Rs. 2500000 (Rupees twenty five lakhs only) granted by you to me in respect of which I have executed a term-loan agreement............, I hereby authorise you to debit my Savings account no 413792 with you with amount of Rs. 80000/- on 25th day of each month starting from March 20XX towards the instalment payable by me for adjustment of my aforesaid loan together with the interest accrued at the stipulated rate.

I undertake to keep sufficient balance in my said Current Account no 413792 to enable the bank to debit the account with the monthly instalment and the interest. This authority is irrevocable until the loan alongwith interest is fully adjusted.

Yours faithfully
Vipin Chawla

Letter to a Bank Manager claiming balance in the account of a deceased customer (when nomination is made)

20, Subhash Nagar
New Delhi
February 12, 20XX

The Manager
Union Bank of India
Vikaspuri, New Delhi

Subject: Transfer of Balance from A/c no 14789 in the Name of Deceased Smt Shakuntala Devi

Sir

It is to inform you that my mother Smt Shakuntala Devi W/O Sh Ram Kapoor expired on 18th July, 20XX. She had a savings account number 14789 with you. I am the nominee in this account.

I am enclosing the death certificate of my mother for your records. I request you to transfer the balance in her saving account to my savings account number 15897 with you. I am also enclosing the passbook of my mother. Please acknowledge the receipt.

Thanking you

Yours faithfully
Prerna Kapoor (D/o Shakuntala Devi)

Reply of the Bank Manager for the above

Union Bank of India
Vikaspuri, New Delhi
February 15, 20XX

20, Subhash Nagar
New Delhi

Subject: Call for Official Visit to the Bank Along with Required Documents

Dear Mrs Kapoor

With reference to your application dated 12th February, 20XX in respect to transfer the balance standing in the name of Shakuntala Devi (deceased), in your account, you are requested to visit the branch any day during working hours. Please bring with you any document confirming your identity.

Thanking you

Yours faithfully
Manager (Claims)

Letter to Bank Manager requesting overdraft facility

Sea-View Maiden Hotel
Manu Marg, Goa
Telephone : 2568543
Fax : 4585957
January 24, 20XX

The Manager
Royal Bank, Goa

Subject: Request for Overdraft Facility

Dear Sir

I would like to remind that we have been maintaining a current account with you for the last ten years. Presently we are in need of an overdraft facility for Rs. 200000/- (Rupees two lakhs only) for a period of one year, for repairing and furnishing of our hotel.

I can offer deposit receipts as security, if you need. Please treat the matter as urgent and reply immediately.

Thanking you

Yours faithfully
RS Randhawa
General Manager

Reply of the Bank Manager for above

Royal Bank
Goa
January 29, 20XX

The General Manager
Sea-View Maiden Hotel
Manu Marg, Goa

Subject: Overdraft Facility

Dear Sir

With reference to your letter dated January 24, 20XX regarding the need of overdraft facility, we apprise you as follows.

We can allow you the overdraft of Rs. 200000/- (Rupees two lakh only) against the security of bank's term deposit. Please visit the bank on any working day with deposits receipts to avail the facility of overdraft.

Thanking you

Yours sincerely
PK Mohanti (Manager)

Letter informing a customer about expiry of an overdraft facility

Royal Bank
Goa
December 15, 20XX

M/S K K Ice Factory
120, Subhash Marg
Kolkata (West Bengal)

Subject: Reminder about Expiry of Overdraft Facility

Sir

This is to inform you that the overdraft facility granted to you on your current account is expiring on 31st December, 20XX. We shall appreciate if you arrange to get the overdraft amount deposited before 31st December.

However, if you are interested in renewing the overdraft facility, kindly submit a fresh application for the same.

Please note that in case you do not deposit the overdraft amount upto 31st December, the bank will charge interest @ 2% on the outstanding balance. The bank can also initiate legal action for the recovery of the dues at your cost and expenses.

Please cooperate.

Yours faithfully
RP Sharma
(Manager)

Letter from the bank advising the customer to maintain minimum balance

State Bank of India
Mayur Vihar
New Delhi
February 15, 20XX

H No 22 Block A
Mayur Vihar
New Delhi

Subject: Requesting to Maintain Minimum Balance in the Account

Sir

It has been observed that you have not been maintaining the prescribed minimum balance of Rs. 5000/- in the current account of your firm. As you are aware failing to maintain minimum balance in the current account will entitle the bank to charge the penalty of Rs. 50/day and to close the account without any prior notice.

You are, therefore, advised to keep the minimum balance in the current account of the firm at all times.

Thank you

Yours faithfully
Manager

Letter to the Bank Manager to make nomination in FDR account

State Bank of India
Goa
August 18, 20XX

Subject: Appointing Legal Nominee for FDR A/c no 1247 for Rs. 100000

Sir

I have an FDR account no 1247 for Rupees one lakh with you. I want to make a nomination in this account. Kindly send me a form for appointing a legal nominee to my mailing address.

Thanking you

Yours faithfully
Bharka Taneja

Reply of the bank supplying form for making nomination in FDR account

State Bank of India
Goa
August 23, 20XX

Dear Sir

With reference to your letter dated 18th August, 20XX, please find enclosed a copy of the form required for making nomination in your FDR account with us. Please submit the form after completing it. You are advised to contact our help desk during any working day in case of any problem.

Thanking you

Yours faithfully
Manager