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The term 'regards' is frequently used in letter-writing. 'Regards' usually forms part of the signature to a letter and is generally preceeded by an adjective, as in 'warm regards', 'fond regards', 'best regards', and so on.

You are telling the person you're writing to that you hold them in good esteem, that you like and respect them.

You might also use the term 'regards', 'regard' or 'regarding' in the body of your letter. You might say, 'I'm writing regarding your comments ...', or 'In regard to your question ...' In this instance you're simply telling someone what you're writing about. You could as easily say, 'I'm writing 'about' your letter ...' and so on.
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