1. Introduction
In todays fastmoving financial environment, mobile banking has become an indispensable channel for both individuals and businesses. Banks often require a formal Letter of Request cum Undertaking (LORU) from the account holder before they activate the facility to transfer funds via mobile applications. This document serves two purposes: it is a request to the bank to enable the service and an undertaking by the applicant to comply with the banks security and compliance requirements.
2. When is the LORU Needed?
The following situations typically trigger the need for a Letter of Request cum Undertaking:
- New corporate or SME accounts seeking mobile fundtransfer capability.
- Existing account holders who have previously disabled mobile transfers for security reasons.
- Clients who wish to raise their transaction limits or add additional authorisers.
- Customers who have been flagged for enhanced duediligence by the bank.
3. Core Elements of the Letter
A welldrafted LORU should be concise yet comprehensive. Below is a checklist of the essential components:
| Component | Description |
|---|---|
| Header | Company/individual name, address, contact details, and date. |
| Subject Line | Letter of Request cum Undertaking for Enabling Funds Transfer through Mobile Banking. |
| Salutation | Addressed to the Branch Manager/ Relationship Officer. |
| Account Details | Account number, type of account, and branch code. |
| Request Statement | Clear statement requesting activation of mobile transfer facility. |
| Undertaking Clause | Commitment to comply with security protocols, limits, and to notify the bank of any breach. |
| Authorized Signatories | Names, designations, and signatures of persons authorized to sign on behalf of the entity. |
| Attachments | Copy of ID proof, board resolution (for companies), and recent bank statements if required. |
| Closing | Appreciation and request for prompt action. |
4. Sample Letter
[Your Company Letterhead]Date: 8 June 2026To,
The Branch Manager,
[Bank Name] [Branch Name],
[Branch Address]Subject: Letter of Request cum Undertaking for Enabling Funds Transfer through Mobile BankingDear Sir/Madam,We, **ABC Enterprises Ltd.**, having our Current Account No. **1234567890** at your esteemed branch, hereby request the activation of the Mobile Funds Transfer facility for the said account.In pursuance of this request, we undertake the following:1. To adhere strictly to the banks security guidelines, including but not limited to usage of OTPs, device registration, and biometric authentication where applicable.2. To limit mobileinitiated transfers to a maximum of **USD 15,000** per transaction and **USD 50,000** per day, unless a higher limit is formally approved in writing.3. To ensure that only the undersigned authorised signatories listed below will initiate or approve any mobile transfer.4. To immediately inform the bank of any suspected fraudulent activity, loss of device, or compromise of credentials.5. To comply with all KnowYourCustomer (KYC) and AntiMoneyLaundering (AML) requirements as may be directed by the bank.**Authorized Signatories**| Name | Designation | Signature ||---------------------|------------------|-----------|| John Doe | Managing Director| __________|| Jane Smith | Chief Financial Officer | __________|Enclosed herewith are the following documents for your reference:- Certified copies of the PAN and Aadhaar cards of the signatories.- Board resolution authorising the activation of mobile banking and the signatories above.- Latest audited financial statements.We kindly request you to process this application at the earliest and confirm once the facility is enabled.Thank you for your cooperation.Yours faithfully,[Signature] John Doe Managing Director ABC Enterprises Ltd.
5. Key Points to Remember
- Clarity is vital. Ambiguous language may cause delays.
- Accurate account information. Any error in the account number or branch code can lead to the letter being returned.
- Authorized signatories. The bank will crossverify signatures with its records.
- Security undertaking. Banks often request a specific limit or additional authentication steps; be explicit about what you agree to.
- Supporting documents. Attach all required paperwork; missing items are a common cause of rejection.
- Followup. After submission, a polite phone call to the relationship officer can expedite processing.
6. Frequently Asked Questions (FAQ)
Q1: How long does it take for the bank to enable the service?
A: Most banks process the request within 35 working days, provided all documents are in order.
Q2: Can the limits be changed later?
A: Yes. A separate written request along with an updated undertaking is required for any limit modification.
Q3: What happens if a mobile transfer is made without the authorised signatory?
A: The bank may treat it as an unauthorized transaction and may initiate a dispute process as per its terms and conditions.
Q4: Is a digital signature acceptable?
A: Many banks now accept scanned signatures on a PDF, but certain jurisdictions still require wet ink. Verify with your branch.
Q5: Do I need to submit a separate request for each device?
A: Usually a single LORU covers all devices, but you must register each device through the banks mobile app after the facility is enabled.
7. Conclusion
The Letter of Request cum Undertaking is more than a formalities checklist; it is a legal instrument that balances the convenience of mobile fund transfers with the banks need to mitigate risk. By preparing a clear, complete, and compliant LORU, account holders can enjoy seamless mobile banking while upholding the highest standards of security and regulatory compliance.
If you are in doubt about any clause or need assistance drafting the letter, consult your relationship manager or a qualified legal professional.
