A bank certification letter is a letter issued by a bank that confirms an individual has an account with that bank and the total value of the funds in the account.

Banking Correspondence is also a type of business communication as banks are business houses and play a vital role in business field. Whether private or public and local or foreign, banks face tough competition just like business firms among themselves. In various business transactions like lending loans for business, credit transactions and in others, banks are relevant and essential. More over banking correspondence is of a special nature as it deals with finance and one must be vigilant and must maintain confidentiality while composing
banking letters.
“Any letter exchanged between bank and its clients or any other letter written by bank to any other party else for performing its banking activities” is known as banking correspondence.

This banking correspondence happens between a bank and its customers or between a bank’s head office and its branches and employees or between a bank and other banks through printed letters or through hand written letters.

Banking correspondence happens at three levels –

• Between a bank and its customers.
• Between a bank’s head office and its branches.
• From one bank to another.

Reasons /Motives – 

The motives behind banking correspondence vary from customers to a
bank’s branches or from a bank’s head office to other banks when they correspond with each other. Customers may write letters to a bank for the following reasons and banks write replies to these letters:-

1. To open an account.
2. To seek an explanation for dishonouring a cheque.
3. To request to sanction loan.
4. To request for overdraft facilities.
5. To instruct the bank to buy shares.
6. To stop payment of a cheque.
7. To provide a letter of credit.

The branch of a bank may write letters to its head office for the following reasons – 

1. To recommend extending overdraft facilities to a customer.
2. To request the head office to ratify an advance by a branch.
3. To ask the permission of the head office to withdraw a loan facility.
4. To permit them to ask a customer to close his/her account.

The only reason for which one bank writes to another is to obtain credit status enquiries.

Characteristics:- Banking correspondence must have these following characteristics –

1. Courteous
2. Confidential
3. Clear
4. Concise
5. Completeness

Request for Loans and Suitable Replies –

Customers write letters to banks with different reasons and motives and they in turn get replies from the bank. Among them the main and
common reason is to request for loans. It may be for individual loans or business loans. While writing letters requesting for loans one must mention the purpose and collateral details. Format and structure must be same as in other business letters.

a. Rajashri Silk Saree Centre, Bangalore writes a letter to the Indian Bank’s branch near their area asking for a loan of rupees ten lakhs against the security of their shares.

b. Write a suitable reply from the bank.