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I would appreciate if anybody can help me in sending email once the status of customer is changed from PENDING - > APPROVED from the Magento Admin Panel

I want to send to customer that your status is approved now.

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I suppose you've installed an extension to manage customer status.

In any case, you have to create an observer that will catch the <customer_save_after> event. There, you should check the customer status and in the case it is approved, you can send a transactional email by Mage::getModel('core/email_template')->send() function loading the appropriate email template.

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