Overview

Correspondence with Banks is the eleventh chapter of the Maharashtra State Board (MSBSHSE) HSC Secretarial Practice syllabus for Std XI, coming right after the chapter on Correspondence with Directors and just before the final chapter on Correspondence with Statutory Authorities. Having already looked at how a Secretary writes to the people inside the company — its directors and its members — this chapter turns outward, to one of the company's most important outside relationships: the company's own bank.

Every company, from the day it is incorporated, needs a bank account to receive money, to pay its bills, its salaries, and its suppliers, and — sooner or later — to borrow working capital when its own cash is not enough to keep the business running smoothly. None of this can happen without a proper, continuing exchange of letters between the company and its bankers, and it is the Company Secretary who, acting under the authority the Board gives, actually conducts this correspondence.

Secretarial Practice, as an MSBSHSE HSC Commerce elective, is examined only at the Std XII (HSC) level as a board examination; Std XI (FYJC) is assessed internally by the college, so this chapter carries no official board-exam weightage of its own — but the drafting skill you build here (a clear, complete, properly authorised letter to a bank) is exactly the same skill Std XII's Secretarial Practice chapters on Correspondence with Members, Debenture-holders and Depositors will ask you to apply again, on a larger scale.

This chapter has no equivalent in any CBSE/NCERT subject anywhere in India — company-secretary correspondence with a company's bankers is taught nowhere outside a dedicated Secretarial Practice paper like this Std XI Secretarial Practice syllabus — but the banking practices and the Companies Act, 2013 provisions it covers (which kind of bank account a company should hold, and when a Board Resolution is legally required before the bank will even act) apply to any company banking anywhere in India, not just one registered in Maharashtra.

Throughout this chapter, keep one idea at the centre: a bank will not act on a company's instructions merely because someone claiming to represent the company asks it to. A bank deals with a company only through the specific people the company's own Board has authorised in writing, generally by a Board Resolution — which is exactly why every letter this chapter teaches you to draft, from opening an account to closing one, is grounded in a Board Resolution behind it.