Document background
The Authorization Letter for Cheque Encashment serves as a crucial document in Singapore's banking system when a cheque holder needs to delegate the authority to encash a cheque to another person. This document is essential when the original payee cannot personally present the cheque at the bank due to various circumstances such as illness, travel, or business commitments. The letter must include specific details about the authorizer, the authorized person, and the cheque itself, while complying with Singapore's banking regulations and the Bills of Exchange Act. It provides banks with the necessary legal assurance to process the transaction while protecting all parties involved.
