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.