Authority Letter for Bank: Format to Authorise Someone

An authority letter for a bank is a short, signed letter that lets a named person act on your behalf for a specific task, such as submitting documents, collecting a cheque book or picking up a statement. The letter must name the person, describe exactly what they may do, and be signed by the account holder or an authorised signatory, with the representative carrying their own ID. Banks decide what they accept, so a clear, narrow letter works best.

Key takeaways

• Keep the authority specific: one task, one account, one person, and ideally a date range.
• Include the representative's name, ID type and number, and a specimen signature if the bank asks.
• For companies and LLPs, the letter goes on letterhead and is signed by someone already authorised on the account.
• Banks may refuse certain tasks through a representative. Ask the branch first.
• Do not use an authority letter to share passwords, PINs or OTPs.

When you need one

Authority letters are for routine, physical tasks when you cannot visit the branch. Typical uses:

What an authority letter usually cannot do is replace your own consent for sensitive actions like changing signatories, closing an account or transferring funds. Those generally need the account holder's own signature, mandates or a board resolution. If you need to change who operates the account, see our signatory change letter instead.

What to include

A good authority letter has eight parts:

1. Date and place.
2. Addressee: The Branch Manager, bank name, branch address.
3. Subject line: "Authority letter for [task] – Account No. XXXX1234".
4. Account holder details: name, account number (consider masking all but the last four digits if the bank allows), customer ID.
5. Representative details: full name, relationship or designation, ID type and number.
6. The authority itself: a precise description of what the person may do, and for how long.
7. Specimen signature of the representative, attested by you, if the bank asks.
8. Your signature, name and, for businesses, designation and company seal if you use one.

Sample format: individual account holder

Date: 12 October 2026 Place: Nagpur

To, The Branch Manager, [Bank name], [Branch address]

Subject: Authority letter to collect cheque book – Savings Account No. XXXXXX4521

Dear Sir/Madam,

I, Anil Deshmukh, holder of the above savings account, authorise Mr Rohan Deshmukh, my son, to collect the cheque book issued against my account on my behalf. His details are given below.

Name: Rohan Deshmukh ID: PAN, number on the attached copy

Specimen signature of Rohan Deshmukh: ______ (attested by me)

This authority is valid only for collection of the cheque book and until 31 October 2026.

Yours faithfully, (Signature) Anil Deshmukh

Sample format: company authorising an employee

[On company letterhead]

Date: 5 October 2026

To, The Branch Manager, [Bank name], [Branch address]

Subject: Authority to submit Export Declaration Form and supporting documents – Current Account No. XXXXXX7788

Dear Sir/Madam,

We, Brightline Software Pvt Ltd, holders of the above current account, authorise Ms Priya Nair, Finance Executive, employee ID BL-214, to submit our monthly Export Declaration Forms (EDF), covering letters and supporting invoices at your branch, and to collect acknowledgements on our behalf, for the period 1 October 2026 to 31 March 2027.

Ms Nair is not authorised to sign the EDF, operate the account, or give any instructions regarding funds.

Her ID proof is attached. Her specimen signature is given below.

Specimen signature: ______

For Brightline Software Pvt Ltd (Signature) Rahul Menon, Director (Authorised signatory)

Notice the second paragraph. Spelling out what the person cannot do protects the business and makes the bank more comfortable.

Worked example: an exporter's monthly submission

Brightline Software, from the sample above, files its EDF each month with its AD bank. The bank accepts physical submission at the branch. The director who signs the EDF travels often, so the company issues a six-month authority letter allowing its finance executive to deliver the signed EDF, invoices and cover letter, and collect the stamped acknowledgement.

The director still signs Part 4 of the EDF himself. The authority letter covers delivery, not signature. When the six months end, the company issues a fresh letter. If the bank also accepts submission by email or portal, the authority letter may not be needed at all; ask the branch. Our EDF cover letter is the natural companion document.

What to attach

• Copy of the representative's ID (self-attested by them).
• Copy of your ID for individuals, if the bank asks.
• Board resolution or authority extract for companies, if the bank asks who may issue such letters on the company's behalf.

Some banks have their own authority form. If yours does, use it, and attach your letter only if they want it.

Common mistakes

• Open-ended wording like "to do all banking work on my behalf". Banks are wary of it, and it exposes you.
• No validity period. Add an end date.
• Missing ID details. The representative will be turned away.
• Signature mismatch. Sign exactly as you signed the account opening form.
• Asking the representative to sign forms. The account holder or authorised signatory signs; the representative only delivers or collects.

This is general information, not legal advice. Banks set their own requirements for accepting third-party authority.

Frequently asked questions

What is an authority letter for a bank?

It is a signed letter from an account holder authorising a named person to carry out a specific task at the bank, such as collecting a cheque book or submitting documents. The bank decides whether to accept it for that task.

Does an authority letter need to be on stamp paper?

For routine tasks like collecting a cheque book or submitting documents, banks generally accept a signed letter on plain paper or letterhead. For wider powers, a bank may ask for a power of attorney instead. Ask the branch.

Can I authorise someone to withdraw cash with a letter?

Some banks allow withdrawals by a bearer with a cheque, but authority letters for cash withdrawal are often restricted. Check the bank's policy before sending someone.

Who signs the authority letter for a company account?

An authorised signatory already recorded with the bank, typically a director or someone authorised by board resolution. The letter goes on company letterhead with their name and designation.

Can my employee sign the EDF under an authority letter?

The EDF declaration in Part 4 should be signed by an authorised signatory whose signature the bank holds. An authority letter for delivery does not make the employee a signatory. If you want the employee to sign, update the bank's mandate properly.

Bottom line

Keep authority letters narrow, dated and signed exactly as on your account. Generate one in a minute with our authority letter for bank tool, on your own letterhead if you are a business.