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.