Why Introduction
need to an Account?
Proper introduction serves
as precaution against any fraud.
It is a safeguard in case of inadvertent
overdraft.
Banker can get help to be satisfied on a proposed account opener about the identity, character, integrity and respectability.
Real reason for obtaining
introduction by the banks is to get legal protection from the courts (Sec-
131,
N.I.
Act)
It helps the banker to give proper and correct confidential opinion regarding the standing and
creditability of
the customer.
Why Introduction
to an Account?
In case any fraudulent transaction takes place in the account, the banks may get some relief since it is the
moral responsibility of the introducer at least to help the bank in finding
out the customer or tracing him
out.
A banker is found to be very
careful in selecting his customers. Before opening an account, he is to be satisfied himself about the identity, character, integrity and respectability of the proposed account opener. To this end he talks to the proposed customer informally to gather as much information
as possible to
satisfy himself about his bonafide. Not only that,
a banker is also now required to obtain information about the possible transaction
needs of the customers
and maintain those in the customer
profile.
Most
importantly the banks are
to compulsorily obtain introduction as
well.
Who can Introduce an Account
:
Anybody acceptable to a bank may introduce an account such as existing
account holders, government high
official, respectable person.