FinTech Glossary

Meaning

An authorized signatory is an individual formally designated by a business to approve transactions, sign documents, or operate bank accounts on behalf of the organisation, within defined limits of authority.

Business Context

In India, banks require a board resolution or partnership/proprietorship mandate specifying authorized signatories before allowing operations on a current account, and these details must be updated whenever signatories change.

Common Responsibilities

Authorized signatories may approve payments, sign cheques, authorise fund transfers, sign contracts, or approve high-value expense claims, depending on the powers assigned to them by the company's governance documents.

Why It Matters for Businesses

Clearly defined signatory authority strengthens internal controls, prevents unauthorised transactions, and is a key part of audit and compliance reviews, especially for high-value or cross-border payments.