Procedure for change in bank account signatory of a company

Maintenance of bank accounts is a regular activity of finance department of various companies. Sometimes it becomes necessary to change the signatories of a bank account for various reasons like old signatory quit the job or transferred to a different location. Through this article I will discuss formalities required to be fulfilled to update the list of authorised signatories eligible to operate a bank account along with sharing sample covering letter and different board resolutions for the same.


As suggested by the summery this write up is somewhere connected with the working of finance department of a company. Considering smooth functioning of business transaction and administrative convenience it is a practice in our corporate world to maintain more than one current bank accounts with different or same banks. This practice is somewhere helpful to ensure smooth business functions like inflow and outflow of funds, payment to vendors etc in a company.

Change in bank account signatory of a company

To understand the banking formalities involved in opening and maintaining a bank account is not an easy task. However by constant working and experience you can manage this work. There is one more work connected with bank account operations and that is change in bank account signatories of a bank account.

Bank account signatory is a person who is authorised through a board of directors' resolution passed in a board meeting to operate a certain bank account. Bank account signatory can sign the cheques etc to complete the day to day finance activities. Most of the companies appoint joint signatories to handle a company bank account one; from account department and second may be some senior finance level employee.

Sometimes there can be a situation in a company where need may arise to change the bank account signatory of a particular bank account. There may be various reasons behind this change like change in location of the old signatory or may be old signatory left the job.

Now we will discuss documents required to bring change in bank account signatories along with covering letter and a sample board resolution for change in bank account signatories.

Document required for change in bank account signatory

Document required for change in bank account signatory may differ from bank to bank. However there are certain documents which are commonly asked by all the private and nationalized bank for updating authorised signatories list. Some of the documents required for change in bank account signatories include:

1. Covering letter towards change in authorised signatory request
2. Latest memorandum of Association of the company
3. Duly signed copy of board resolution
4. Duly filled details of new signatories in the signature update form of the bank.
5. Identity and address proof of new signatories
6. Colour photograph of new signatories
7. Any other document as may be required by the bank

Note: Requirement of memorandum and article of association of the company may be waived off by the bank if there is no change in the same from the time when bank account was opened because memorandum and article of association are important documents which needs to be submit while opening a bank account for a company.

Sample of covering letter for change in authorised signatory request

Please find below covering letter required to be attached with your request to bank for change in bank account signatories:

Date: July 23, 2012
The Branch Manager
Kotak Mahindra Bank Limited
Pitampura, New Delhi-110034

Sub: Request for change in bank account authorised signatories

Dear Sir/Madam,

With reference to the subject mentioned above we wish to mention that we had appointed Mr. Rakesh Dhawan as bank account authorised signatory to operate current bank account bearing account no. 123456 with Kotak Mahindra Bank Limited having branch address at Pitampura, New Delhi-110034.

We further wish to inform you that the tenure of Mr. Rakesh Dhawan with the company come to an end as bank account authorised signatories and in his place Mr. Amit Joshi, Mr. Sudarshan Kumar and Mr. Pradeep Verma have been authorised and added as bank account authorised signatories by board meeting resolution dated July 20, 2012 to operate the above mentioned current bank account bearing no. 123456.

As per the procedure notified by the bank, a copy of duly signed board resolution and other relevant documents like identity proof of new signatories are attached for bringing change in bank account authorised signatories.

Please find the same in order. Kindly acknowledge the receipt.

Thanking You,
Yours Sincerely
For XYZ Milk Products Limited

Authorised signatory/Director/Company Secretary

Sample of board resolution for change in authorised signatory request

Please find below sample board resolution required to be passed in the meeting of board of directors for change in bank account signatories:

"RESOLVED THAT in suppression to all the resolutions passed earlier by the Board of Directors in its meeting in respect of the Current Bank Account bearing no. 123456 maintained with Kotak Mahindra Bank Limited, Pitampura Branch, New Delhi in the name & style of "XYZ Milk Products Limited", Kotak Mahindra Bank Limited, be and is hereby authorised to honour Cheques drawn, accepted or made in the name and on behalf of the company as per the following limits:

1. Cheques up to the amounts of Rs. 25,000/- signed jointly by

a.) Mr. Amit Joshi, authorised signatory
b.) Mr. Sudarshan Kumar, authorised signatory
c.) Mr. Pradeep Verma, authorised signatory
duly constituted attorneys of the company consistent with the powers vested in them.

2. Any cheque for any amount without any upper or lower limit signed by Mr. Prakash Singh Rawat, Managing Director and Mr. Manoj Goyal, Director

RESOLVED FURTHER THAT the aforesaid bank be and is hereby instructed to honour all cheques, promissory notes and other order drawn by and all bills accepted on behalf of the company whether such account be in credit or overdrawn and to accept and credit to the account of the company all money deposited with or owing by the bank or any account or accounts at any time or times kept or to be kept in the name of the company and the amount of all cheques, notes, bills other negotiable instruments order or receipts provided they are endorsed/ signed as above on behalf of the company and such signature(s) shall be sufficient authority to bind the company in all transactions between the bank and the company including those specifically referred to herein."

RESOLVED FURTHER THAT the above resolutions be communicated to the said Banker and remain in force until the same is cancelled or modified by the Board of Directors by another resolution and extract whereof forwarded to the banker by the Chairman or any one of the directors of the company in writing".

Certified True Copy
For XYZ Milk Products Limited

Rajan Tripathi) (Ambrish Malhotra)
Director Director

----------------------------- ---------------------------------
Signature of Mr. Prakash Singh Rawat Signature of Mr. Manoj Goyal
(Managing Director) (Director)

------------------------ --------------------------
Signature of Amit Joshi Signature of Mr. Sudarshan Kumar,
(authorised signatory) (authorised signatory)

(Attested by)

Rajan Tripathi) (Ambrish Malhotra)
Director Director


I sincerely hope that the above compilation would be of some help to improve your corporate ease as far as dealing with bank officials is concerned. For any finance personnel it is very important to understand the working of banking system to ensure administrative convenience and ease of working. I you face any problem regarding the understanding of resolution please let me know. Thanks

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