A balance confirmation letter request asks your bank to certify the balance in one or more of your accounts as on a specific date, usually 31 March for year-end audits. State the exact date, list every account to be covered, and say where the bank should send the confirmation, because many auditors want it directly from the bank. A sample format follows.
Key takeaways
- Auditors commonly ask for bank balance confirmations as at the balance sheet date.
- Your request must name the date and every account: current, savings, fixed deposits, EEFC and loan accounts.
- Some auditors want the bank to reply to them directly; say so in your letter.
- Exporters with EEFC accounts should ask for balances in the foreign currency, not just a rupee figure.
- Each bank has its own process and charges; ask your branch.
Why businesses ask for balance confirmations
A balance confirmation is independent evidence that the cash shown in your books actually exists. Statutory auditors, tax auditors, lenders, government tenders and potential investors all ask for it at different times. The most common trigger is the annual audit, when the auditor wants confirmations as on 31 March.
For service exporters, the year-end confirmation has an extra use. It helps reconcile foreign receipts, EEFC balances and the year's export invoices. In FY 2026-27, the first year with EDFs under the FEMA (Export and Import of Goods and Services) Regulations, 2026, that reconciliation is worth doing carefully.
What to include
| Element | Example | Notes |
|---|---|---|
| Letterhead | Asha Design Studio, Bengaluru | Your business details |
| Date and reference | 2 April 2027, ADS/BANK/27/004 | For follow-up |
| Addressee | Branch Manager, [bank], [branch] | The branch holding the accounts |
| Subject | Request for balance confirmation as on 31 March 2027 | Specific date |
| Account list | All accounts, with type and number | Include FDs, EEFC, loans, overdrafts |
| Details required | Balance, interest accrued, lien or charge if any | Match your auditor's request |
| Currency | INR, and foreign currency for EEFC | State both if relevant |
| Delivery | To you, or directly to the auditor | Give the auditor's name and address |
| Signature | Authorised signatory | Must match bank records |
Ask your auditor for their exact list of items before you write. Some want only balances; others want interest accrued, securities held, guarantees issued and any charges on accounts.
Sample balance confirmation request
[Your business letterhead]
Date: 2 April 2027 Ref: ADS/BANK/27/004
The Branch Manager [Bank name] [Branch address]
Subject: Request for balance confirmation as on 31 March 2027
Dear Sir/Madam,
We request you to confirm the balances in the following accounts held by Asha Design Studio (proprietor: Asha Kulkarni) with your branch, as on the close of business on 31 March 2027:
Sr. Account type Account number Currency 1 Current account XXXXXXXX4471 INR 2 EEFC account XXXXXXXX9020 USD 3 Fixed deposit XXXXXXXX3318 INR Kindly include, for each account, the balance, any interest accrued but not credited, and details of any lien, charge or encumbrance.
The confirmation is required for our statutory audit for FY 2026-27. Kindly send the confirmation directly to our auditors at the address below, with a copy to us:
[Auditor firm name] [Address] [Email]
Any applicable charges may be debited to our current account listed above.
Yours faithfully,
[Signature] Asha Kulkarni, Proprietor
Our balance confirmation request generator fills this in with your accounts and auditor details.
Tips for exporters
EEFC accounts. If you keep export proceeds in an Exchange Earners' Foreign Currency account, ask for the balance in the foreign currency as well as any rupee equivalent the bank shows. Your books may carry it at a different rate. Our glossary entry on EEFC accounts explains what they are.
Multiple banks. If you have accounts with more than one bank, send a separate request to each. A single letter cannot cover accounts at another bank.
Unmatched receipts. If your year-end review shows foreign credits not yet linked to invoices, sort them out with your bank alongside the balance request. Unmatched receipts usually point to EDPMS entries still open.
Interest certificates. Fixed deposit interest often needs a separate interest certificate for tax purposes. Our interest certificate request letter covers that.
Why confirmations get delayed or rejected
Most delays trace back to a handful of avoidable slips:
- Signature mismatch. The letter is signed by someone who is not an authorised signatory in the bank's records, often after a change of directors or partners that was never updated with the bank.
- Missing accounts. A fixed deposit or an old overdraft is left off the list, and the auditor sends the request back.
- Vague date. "Year-end balance" instead of "as on close of business on 31 March 2027".
- No delivery instruction. The bank sends the confirmation to you when the auditor needed it directly.
- Unpaid charges. The bank waits for you to pay the fee before releasing the letter.
If your signatories have changed recently, sort that out first; our signatory change letter helps.
A short worked timeline
Kestrel Analytics LLP plans its FY 2026-27 audit:
| Date | Action |
|---|---|
| 25 March 2027 | Auditor shares confirmation request list |
| 2 April 2027 | Kestrel sends balance confirmation requests to both its banks |
| Mid-April 2027 | Banks send confirmations to the auditor (timing depends on each bank) |
| April 2027 | Kestrel reconciles balances with books, including EEFC in USD |
| April–May 2027 | Year-end export reconciliation: invoices, EDFs, FIRAs and closures |
Turnaround depends on the bank and the time of year; April is busy for every branch, so send requests early. This is general information, not legal or tax advice.
Frequently asked questions
What is a balance confirmation letter?
It is a certificate from your bank confirming the balance in your accounts on a specified date, often with interest accrued and any charges or liens. Businesses request it mainly for audits, loans and tenders.
Who can request a balance confirmation from the bank?
The account holder, through an authorised signatory. Some auditors send their own request with your authorisation; others ask you to request it and have the bank reply to them directly.
Can I get balances for all my accounts in one letter?
Yes, for accounts at the same bank. List each account with type, number and currency. For accounts at different banks, send a separate letter to each bank.
Should EEFC balances be confirmed in foreign currency?
Yes, ideally. Ask the bank to state the balance in the account currency, such as USD, so you can reconcile with your books. A rupee equivalent alone can cause differences due to exchange rates.
Does the bank charge for a balance confirmation?
Banks set their own charges. Check your bank's schedule of charges or ask your branch, and mention in your letter that charges may be debited to a named account.
Bottom line
A balance confirmation request is a short letter, but getting the date, the account list and the delivery instructions right saves weeks of back-and-forth during audit season. Generate yours with the free balance confirmation request tool.
This guide is general information for Indian businesses, not legal or tax advice. Rules and bank processes change — confirm specifics with your AD bank or chartered accountant.