The Authorization Letter for Bank Transaction is a critical document used in the Indian banking system when an account holder needs to delegate banking transaction authority to another person. This delegation might be necessary due to various circumstances such as travel, illness, business requirements, or physical inability to visit the bank. The document must comply with Indian banking regulations, including the Banking Regulation Act, 1949, and RBI guidelines. It typically includes detailed information about the account holder, the authorized person, specific transaction permissions, validity period, and any applicable limitations. The authorization letter serves as a security measure for both the bank and the account holder, ensuring that only permitted transactions are executed by the authorized representative. It's particularly relevant in both personal and business contexts, where formal delegation of banking authority is required while maintaining proper controls and documentation.

1. Date and Place: Current date and place of execution of the authorization letter

2. Bank Details: Complete name and address of the bank branch where the account is held

3. Account Holder Details: Full name, address, and account number of the person giving the authorization

4. Authorized Person Details: Full name, address, and identification details of the person being authorized

5. Scope of Authorization: Specific banking transactions and activities being authorized (e.g., withdrawals, deposits, statement collection)

6. Duration of Authority: Time period for which the authorization is valid

7. Specimen Signature: Space for authorized person's specimen signature

8. Declaration: Statement confirming the voluntary nature of authorization and acceptance of associated risks

9. Signature Block: Space for signatures of the account holder, authorized person, and witnesses