Authorisation to Operate Bank Account

To, The Branch Manager [bank_name], [branch_name] Date: [authorisation_date] Subject: Authorisation to operate savings/current account no. [account_number] Sir/Madam, 1. I, [account_holder], residing at [holder_address], am the holder of account number [account_number] maintained with your branch. 2. REASON FOR THIS AUTHORISATION [reason] 3. AUTHORISATION I hereby authorise [authorised_person], being my [relationship], residing at [authorised_person_address], to act on my behalf in respect of the said account, to the extent set out below. 4. POWERS GRANTED [powers_granted] 5. LIMITS ON THE AUTHORISATION 5.1 The authorised person shall act STRICTLY within the powers granted above and shall not exceed them. 5.2 The authorised person is NOT authorised to close the account, to change the nominee, to alter the mode of operation, to apply for a loan or overdraft against the account, or to pledge or create any charge over the balance, unless expressly stated above. 5.3 The authorised person shall not delegate this authority to any other person. 6. VALIDITY This authorisation takes effect from [authorisation_date] and remains valid [validity_period], or until revoked by me in writing, whichever is earlier. 7. REVOCATION I may revoke this authorisation at any time by written notice to the Bank. I understand that the revocation takes effect only when the Bank has actually received and acted upon such notice, and that the Bank shall not be liable for transactions carried out before that time. 8. AUTOMATIC TERMINATION This authorisation shall stand automatically terminated on my death, or on my being adjudged of unsound mind or insolvent, in accordance with law. 9. RATIFICATION AND INDEMNITY 9.1 I ratify and confirm all lawful acts done by the authorised person within the powers granted, and such acts shall be binding on me as if done by me personally. 9.2 I indemnify the Bank against all claims, losses and liabilities arising from acting in good faith upon this authorisation. 10. I request the Bank to record this authorisation and to obtain the specimen signature of the authorised person as required. Yours faithfully, [account_holder] Account No.: [account_number] Signature: ______________________ SPECIMEN SIGNATURE OF THE AUTHORISED PERSON I, [authorised_person], accept the authorisation on the terms stated above. Name : [authorised_person] Signature : ______________________ Date : [authorisation_date] FOR BANK USE Signature of account holder verified: ______________________ Authorisation recorded on ______________ by ______________________ A NOTE OF CAUTION An authorisation to operate a bank account is a serious step. The authorised person can move your money within the powers you grant, and the bank is entitled to act on their instructions in good faith. - Grant only the powers actually needed, and state the limits expressly. An open-ended authorisation is rarely wise. - Set a validity period rather than leaving it indefinite. - Revoke in writing the moment the need ends, and obtain the bank's written acknowledgment of the revocation. - Where the purpose is to provide for a period of incapacity or long absence, consider whether a properly drawn Power of Attorney, or a joint account with a suitable mode of operation, better serves the purpose. Banks have their own requirements for each, and will tell you what they will accept.