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Current Account Closing Letter: Current Account Application Format with Sample Letter
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To write a letter to close your bank account, start with the date, address it to your bank's branch manager, mention the purpose in the subject, provide your account details, explain the reason for closure, and sign it with your contact information.
Closing a company's current account involves steps similar to closing a personal account. Contact your bank, obtain the account closure form, provide necessary closure requests and documents as per bank’s policy and fill it out with company details, and return all relevant items.
To permanently close your bank account, visit your bank, request an account closure form, fill it out accurately, return all account-related items, and ensure a zero balance. Your bank will confirm the closure.
To close an account and transfer funds, write a letter for closing a current account to your bank requesting the account closure and specifying where to transfer the remaining balance. Follow the bank's instructions.
An inactive current account with a balance may still incur fees and maintenance charges. It's advisable to either use the account or consider closing it to avoid unnecessary maintenance charges and costs.
To write an application to close a current account, address it to the bank's branch manager, mention the purpose in the subject, provide your account details, explain the reason for closure, and sign it with your contact information.
Disclaimer: This Article is for information purposes only. The views expressed in this Article do not necessarily constitute the views of Kotak Mahindra Bank Ltd. (“Bank”) or its employees. The Bank makes no warranty of any kind with respect to the completeness or accuracy of the material and articles contained in this Article. The information contained in this Article is sourced from empaneled external experts for the benefit of the customers and it does not constitute legal advice from the Bank. The Bank, its directors, employees and the contributors shall not be responsible or liable for any damage or loss resulting from or arising due to reliance on or use of any information contained herein. Tax laws are subject to amendment from time to time. The above information is for general understanding and reference. This is not legal advice or tax advice, and users are advised to consult their tax advisors before making any decision or taking any action.
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Closing a bank account is a decision that individuals and businesses may need to make for various reasons. Understanding the steps involved in this process is essential to ensure a hassle-free experience. In this article, we will explore the current account close application process and provide you with a sample letter to make the process smoother.
Why to Close a Bank Account?
There are many reasons people think of closing a bank account. Some reasons include a change in banking preferences, consolidating multiple accounts, or reducing charges and fees. Many times, bank accounts become inactive, prompting account holders to close them. Other key reasons include security concerns following fraud or relocations to areas where the existing bank lacks presence. Poor customer support or disappointing banking experiences may lead to account closures. Significant life situations or a shift in financial circumstances can also lead to closing or transferring accounts.
There are some common reasons why individuals and businesses decide to close their current bank accounts. Understanding these reasons can help determine if closing your account is the right choice. Some common reasons for closing a bank account include:
Common Reasons People Close Their Current Accounts
How to Close a Current Account?
What Are the Required Documents to Close the Current Account?
When you decide to close your current bank account, you'll typically need the following documents and identification:
How to Write a Letter to the Bank for Closing the Current Account?
Format of a Current Account Closing Letter
When writing a letter to close your current account, follow this format:
Here's an application format for closing a current bank account you can use as a reference when drafting your application.
Current Account Closing Letter Sample
Each bank has its own specific form and process for closing a current account using an account close application. To ensure a smooth closure, it’s essential to get the correct format and list of required documents from your bank.
Along with the closure form and bank account closing letter, banks may ask for supporting documents, which vary depending on your account’s structure or constitution (like individual, company, or partnership).
The best approach is to contact your bank directly to understand their exact requirements. This will help you avoid delays and ensure all necessary steps are taken to close your account.
Below is a sample of a simple bank account closing letter format for reference.
Sample – Current Account Closing Letter
The Manager
[Bank Name]
[Branch Address]
[Date: dd/mm/yy]
Subject: Request for Closing Current Account
Dear Sir/Ma'am,
I, ABC hold a Current Account at your [Bank Name] branch with account number [123456789]. Due to specific reasons, I can no longer maintain this account and wish to close it. Please initiate the account closure process and settle any remaining transactions.
I am enclosing my passbook and other necessary documents for the account closure. Please do what is necessary as soon as possible.
Thank you for your assistance.
Yours faithfully,
ABC
Also Read- What is a Current Account - Meaning, Types, Benefits & Features
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