Document background
A Banking Resolution is a fundamental corporate document required for organizations operating in India to establish and maintain their banking relationships. This document becomes necessary when a company needs to open bank accounts, authorize specific individuals for banking transactions, modify signing authorities, or establish new banking relationships. The resolution must comply with the Banking Regulation Act, 1949, Companies Act, 2013, and relevant RBI guidelines. It typically follows a board meeting where such banking arrangements are approved and includes crucial details such as authorized signatories, transaction limits, and specific banking powers granted. The document serves as the primary reference point for banks to verify the authority of individuals conducting transactions on behalf of the organization and is essential for maintaining proper corporate governance in banking operations.
