A bank account closure letter is a short, signed request to your branch asking it to close a specific account and tell you where to send the remaining balance. For a savings account, the account holder signs; for a current account held by a business, the authorised signatories sign on the business letterhead, often with a board or partners' resolution. If the account receives foreign payments for your exports, finish your export paperwork first — open EDF entries and pending inward remittances are much harder to sort out after the account is gone.
Key takeaways
- Address the letter to the branch manager of the branch where the account is held.
- State the account number, account type, reason (optional) and how the balance should be paid out.
- Return unused cheque leaves and debit cards, or confirm they've been destroyed.
- Business current accounts usually need a resolution and signatures matching the bank's mandate.
- Exporters: redirect clients to the new account, close open EDPMS entries and collect FIRAs before closing.
What every closure letter should include
| Element | Savings account | Current account (business) |
|---|---|---|
| Addressed to | Branch Manager, branch name and address | Same |
| From | Account holder's name and address | Business name, on letterhead |
| Account details | Account number, type, name as per records | Account number, type, business name |
| Instruction | Close the account | Close the account |
| Balance | Transfer to another account (give details) or pay by cheque/demand draft | Same, usually to another account in the business's name |
| Enclosures | Unused cheque leaves, debit card (cut), passbook | Unused cheques, cards, resolution, ID of signatories as needed |
| Signature | Account holder (all holders for a joint account, as per the mode of operation) | Authorised signatories as per the bank's mandate |
Banks have their own closure forms too, and many will ask you to fill one alongside or instead of a letter. A letter is still useful: it records what you asked for and when.
Sample: savings account closure letter
To The Branch Manager [Bank name], [Branch name] [Branch address]
Date: [DD Month YYYY]
Subject: Request to close savings account no. [XXXXXXXX1234]
Dear Sir/Madam,
I hold savings account no. [XXXXXXXX1234] in the name of [Full name] at your branch. I request you to close this account with effect from the date of this letter.
Please transfer the remaining balance, after any applicable charges, to my account no. [YYYYYYYY5678] with [Bank name], IFSC [XXXX0000000], held in my name.
I am returning the unused cheque leaves numbered [from–to] and my debit card, which I have cut across. I have no standing instructions or pending transactions on this account.
Thank you.
Yours faithfully, [Signature] [Full name] [Mobile number]
Sample: current account closure letter for a business
[Business letterhead]
To The Branch Manager [Bank name], [Branch name] [Branch address]
Date: [DD Month YYYY]
Subject: Closure of current account no. [XXXXXXXX9012] — [Business name]
Dear Sir/Madam,
We request you to close current account no. [XXXXXXXX9012] held in the name of [Business name] at your branch.
A certified copy of the resolution of our [Board of Directors / partners] dated [date], authorising the closure, is enclosed.
Please transfer the closing balance to our account no. [YYYYYYYY3456] with [Bank name], IFSC [XXXX0000000], held in the name of [Business name].
We confirm that all standing instructions on this account have been cancelled. Unused cheque leaves numbered [from–to] and the debit cards linked to the account are returned herewith.
Yours faithfully, For [Business name]
[Signature] [Signature] [Name, designation] [Name, designation] Authorised signatories
Our free account closure letter generator fills both versions with your details and prints them on your letterhead.
Before you close an account that receives export payments
This is where exporters get caught out. If your foreign clients pay into the account you're closing, work through this checklist first:
| Check | Why |
|---|---|
| Have all clients been given new bank details — in writing? | A wire sent to a closed account bounces or gets stuck, eating weeks of your realisation window |
| Are all EDFs for past months filed with this bank? | The bank holds your EDPMS entries for invoices whose proceeds it receives |
| Are open EDPMS entries closed or accounted for? | Unpaid invoices remain open against this bank; ask how it will handle them after closure |
| Have you collected FIRAs/FIRCs for all past credits? | Getting them after closure is harder; you'll need them for GST refunds and audits |
| Is any ₹10 lakh realisation declaration still pending? | Submit it before closure so small invoices are closed cleanly |
| Is there an EEFC balance? | Decide whether to convert or transfer it |
Example. Mehr Studio LLP, a fictional Jaipur design firm, moved its export business from one bank to another in October 2026. It gave all five foreign clients new bank details on 1 October, kept the old current account open until the last expected payment arrived on 18 November, filed the October EDF with the bank that actually received October's payments, collected FIRAs for every credit and only then sent the closure letter on 5 December. No payment bounced and no EDPMS entry was left orphaned.
Our guide to changing your AD bank covers the whole move.
Common reasons banks delay closure
- Signatures don't match the specimen on record — for businesses, check the mandate is current before you write.
- Pending charges or a negative balance — clear them first.
- Linked products — fixed deposits, loans, overdraft limits or sweeps tied to the account.
- Missing resolution for company or LLP accounts.
- KYC gaps on old accounts — your bank may want updated KYC even to close.
If your signatories have changed since the account was opened, update the mandate first. Our signatory change letter handles that.
This is general information, not legal or tax advice. Your bank's own closure form and process take precedence.
Frequently asked questions
How do I write a letter to close my bank account?
Address it to the branch manager, give your account number and type, ask the bank to close it, and say where to send the balance. Enclose unused cheques and cards, sign as per the bank's records and keep a copy with the bank's acknowledgement.
Who signs the closure letter for a company's current account?
The authorised signatories named in the bank's mandate sign on the company letterhead. Banks usually ask for a certified copy of a board resolution approving the closure.
Can I close an account that receives foreign payments?
Yes, but first redirect clients to your new account in writing, file any due EDFs, collect FIRAs and ask the bank how it will handle open EDPMS entries for unpaid invoices. Closing too early can leave payments stuck and entries open.
What happens to the balance when I close my account?
The bank pays it out as you instruct, usually by transfer to another account in your name or by a cheque or demand draft, after deducting any applicable charges.
Do I need to give a reason for closing my account?
Most banks don't insist on one, though some closure forms ask. A short reason, such as consolidating accounts, is enough.
Bottom line
A closure letter takes five minutes; tidying up export paperwork takes a little longer and matters more. Generate a ready-to-sign letter with our free account closure letter generator, and browse the other bank letter templates for the rest of the move.
This guide is general information for Indian businesses, not legal or tax advice. Rules and bank processes change — confirm specifics with your AD bank or chartered accountant.