BANKING CORRESPONDENCE avoid legal issues in giving creditrelated information. Requests for Loans and Overdrafts Banking Services and Customers Banks provide many financial and security services like funds collection and lending, safekeeping of money and valuables, share dealings, bill payments, establishing credit etc. Customers range from financiers to common individuals with limited banking knowledge. Nationalized banks especially assist small businesses and weaker sections. Customers approach banks for services, help and advice on financial matters they may not fully understand. Lending conditions vary by location. RBI regulations change as per economic policies. Bank letters need skills, patience and banking knowledge. Language, explanations are adapted to the customer. Replying to Customer Enquiries For enquiries about services like safekeeping, investments, loans etc, it is best to invite customers for a personal discussion at the bank for suitable arrangements per their needs. This avoids lengthy written explanations to customers with limited banking knowledge. Information on Creditworthiness Customers' Banks provide customer credit information only to other banks, not public. They give a general, noncommittal opinion of creditworthiness on a separate sheet, disclaiming liability. Customers' names, account details are not disclosed. Precautions Banks lend as per RBI regulations and policies, with priority sectors. Borrowers need to submit security, documents like partnership deed, board resolution etc. Securities include shares, goods, machinery, LIC policies etc with steady value and liquidity. Loans are granted considering creditworthiness and suitability of security. Customers are informed if loan requests are approved or refused with reasons. Replying to Customer Complaints Complaints arise from misunderstandings about banking services. Banks clearly explain their position and applicable arrangements. They may suggest alternative services to meet needs. Tactful, courteous explanations maintain goodwill. Letters about Overdrawn Accounts Valued customers may occasionally overdraw. They are promptly informed to deposit required amount and arrange overdrafts. Recurrent overdrawing without arranging overdrafts elicits warnings to maintain balance or checks will be dishonoured. Severe overdrawing leads to account closure. Dishonour of Cheques Customers are immediately informed if cheques are dishonoured due to inadequate funds. Recurrent dishonouring necessitates stronger communication. Closing Accounts Unsatisfactory account operation insufficient balance, overdrawing without overdrafts, frequent stop payments - leads banks to request account closure after due notice. Deposits and withdrawals are halted by a specified date. Overdraft and Loan Accounts If overdraft facilities remain unused for long, banks may close them as funds get blocked. For loan accounts, banks may recall part of the loan or ask for additional security if existing security depreciates substantially.