If you are looking for board resolution for closure of bank account, then you are at the right place. Here, you will find the sample board resolution format for closing a bank account as per the Companies Act, 2013.
Board Resolution format for Closing Bank Account
Closing a company’s bank account is a formal decision that must be recorded properly in a Board Resolution. Whether your company is winding up operations, consolidating accounts, or closing inactive accounts, a well-drafted resolution ensures legal compliance and smooth processing with the bank.
Find here a sample Board Resolution format for Closure of Bank account. You may use this board resolution to close any bank’s current account such as HDFC Bank account, Axis Bank account, ICICI Bank account, SBI, etc.
This resolution is required to close the bank account operation. The same will be printed on the company letterhead.
But, before printing make sure that you have updated the key information in this sample board resolution template. You can use this resolution format for the closure of the current account of any company.
I hope you people will find it useful. You may refer to the below-mentioned sample BR format for bank account closure.
Board resolution for closure of bank account
Get ready to use Board resolution (BR) format for closing bank account operation. You can also download this board resolution for closure of bank account in word format.
Sample Board Resolution format for Bank Account Closure
TO BE PRINTED ON THE LETTER HEAD OF COMPANY
CERTIFIED TRUE COPY OF THE RESOLUTION PASSED AT THE MEETING OF THE BOARD OF DIRECTORS OF [NAME OF COMPANY], HELD ON [ENTER DATE OF BOARD MEETING HERE], AT [WRITE REGISTERED OFFICE ADDRESS HERE].
The Director [DIRECTOR NAME HERE] informs to the board that the current account number-[ACCOUNT NUMBER] of [BANK NAME] is needs to be closed, due to closure of business activity / inoperative from several months.
RESOLVED THAT the consent of the board of directors is hereby accorded to close the current account number- [ACCOUNT NUMBER] of [BANK NAME] and money lying in the said account be returned to the company by way of issuance of banker’s cheque or transfer to the other account number [BANK ACCOUNT NUMBER] of [BANK NAME].
FURTHER RESOLVED THAT [NAME OF DIRECTOR] director of the company is hereby authorised to sign and submit documents or information and to do all such acts, deeds or things to give effect to the above resolution on behalf of company.
FURTHER RESOLVED THAT a copy of this resolution be given to the banker, as may be required under the seal and signature of any of the director of the company.
CERTIFIED TRUE COPY
For [NAME OF COMPANY]
DIRECTOR : [DIRECTOR NAME]
DIN:[ ENTER DIRECTOR IDENTIFICATION NUMBER]
Date: [DATE OF SIGNING BR]
Note: You can also download this resolution in word format.
Instruction to use – BR
Download or copy this BR format on a Microsoft word file.
Update the required information such as COMPANY NAME, BANK ACCOUNT NUMBER, REGISTERED OFFICE ADDRESS, DATE, DIRECTOR NAME/ SIGNATORY NAME etc.
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Is Board Resolution Mandatory for Bank Account Closure?
Yes, for companies registered under the Companies Act, 2013, a Board Resolution is mandatory to close a bank account.
However, requirements may vary based on the type of legal entity:
- Private Limited / Public Limited Company → Mandatory
- One Person Company (OPC) → Mandatory
- LLP / Partnership Firm → Partner resolution is usually accepted
- Proprietorship → Not required
When is a board resolution required for closure of bank account?
A Board Resolution for closure of a bank account is required whenever a company decides to permanently discontinue the use of any bank account opened in its name. This applies in situations such as:
- Closure of an inactive or unused bank account
- Shifting banking operations to another bank
- Company restructuring or merger
- Voluntary closure of business operations
- Winding up or strike-off of the company
Banks insist on a board resolution to ensure that the decision is authorized by the company’s governing body and not taken unilaterally.
Bank Account Closing Letter
Dear user, don’t forget to collect a Bank account closing letter from the bank once your account has been closed. It is a very important document for record purposes.
Keep this as proof of the closure of your Bank account. Therefore, ask your Bank to issue a closing letter in the form of a “No Objection Certificate” on letterhead.