Question

Justify the following statement:
The secretary should observe certain precautions while corresponding with the bank?

Answer 1

The points to be kept in mind by a Secretary while corresponding with banks:
(1) Prompt reply: In certain cases such as loss of a cheque, mistakes or wrong entries in the passbook, etc. communication to the bank must be prompt. Replies to letters from the bank must be sent promptly.
(2) Brevity/Conciseness: The letter/correspondence with the bank should be brief, compact, and to the point. The letters should not contain unnecessary details. I
(3) Courtesy: The letter drafted to the bank should be courteous and polite. Secretary should not use harsh or rude, offending words in the correspondence.
(4) Clarity: The wording and the construction of the letter must be clear and understandable to the reader. The Secretary should provide true, factual clear and update the information of his organisation to the banker.
(5) Accuracy: The letter to a bank must be accurate in all respects. The facts, figures, statistical data, amounts, names of the parties, etc. mentioned in the letter must be properly verified before mentioning them in the letter.
(6) Secrecy: As far as possible confidential information should not be communicated in writing as it may harm the interests of the company.
(7) Legal procedure: Wherever applicable, the Secretary must endure that the statutory provisions and requirements are complied with white drafting letters to the bank. The Secretary must ensure that the enclosures referred to in the body of the letter tally with those actually enclosed.