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deepak (student)     25 October 2016

Introduces signature for opening bank account

respected sir/madam, 4 to 5 months ago, I went to Bank, in Bank  one person came to me , and requested for Introduces signature for opening Bank account, i checked his PAN card and put signature, Actually I don't know the person and his Identity, if that person soes anything wrong in bank, does will it affect my account ? if that will affect to my account, which i have to take immadiately please help me , because i am CA IPCC student , I don't want to take any risk, i have forgotten his name also, really i am confused lot please suggest me which step i have take first, already I met Bank manager, but he asked his name , but i have forgotten his please help me thank you,


 10 Replies

SIVARAMAPRASAD KAPPAGANTU (Retired Manager)     26 October 2016

In terms of extant RBI guidelines, introduction is NOT MANDATORY.  Banks have to take two proofs to their satisfaction, before opening account. One is Identity proof and Second Address Proof.


Therefore, in future if anybody approaches you for introduction to open bank account, there is no need to give.


What is introducer's responsibility/liability.  In case anything happens in the account, bank will first contact the introducer to help them in tracing the person whom you have introduced. Beyond that there is no responsibility/liability on the part of the Introducer.

Arvind Singh Chauhan (advocate)     26 October 2016

Don't bother any more, but Never do so in future. Following judgment will help you.----------

Appeal (crl.)  650 of 1998



DATE OF JUDGMENT: 21/04/2004



2004 Supp(1) SCR 601

Concluding part of the judgment is---------------------------

The appellant had introduced Loknath Acharya to the
Bank only for opening an account and that by itself does not spell out any
fraud or cheating.

There is no evidence to show that the present appellant instigated Loknath
Acharya to present bogus drafts before the complaint Bank. It is also not
correct to say that appellant was in anyway responsible for the loss
sustained by the Bank. When the bank passed the cheque for Rs. 27, 000/- at
a time when the account holder Loknath Acharya had no sufficient money in
his credit. They acted on the bogus drafts given by him. For which the
appellant who had introduced the account holder about six months back
cannot be made liable for commission of offence of abetting office of

The trial court as well as the appellate court committed serious error in
finding the appellant guilty of judgment of the trial court, Sessions Court
and the judgment of the High Court and acquit the appellant of the charge
of Section 420/109 IPC. The bail bonds shall stand discharged. The appeal
is allowed.


                                                     As Shivramprasad Sir has said, You alone is not liable. Bank should rely on account holder's document and it's own verification.


1 Like

G.L.N. Prasad (Retired employee.)     26 October 2016

Obtaining introduction is no more a requirement now, as tthe Bank is supposed to know their customer under KYC norms.  If the Bank has sent you a Thanks note for introducing, then only you should be bothered.  Now that KYC norms and AADHAR lilnkage is there, there may not be any problem.  Further, Bank is supposed to verify original documents and obtain such copy of documents with signature of the customer.  

Kishor Mehta (CEO)     26 October 2016


Legally speaking the introducer may not have any reponsibility, however the introducer has to bear the harrasment and expenses of court cases and that is the practical side. Hence one should not sign introduction form or stand guarantee for anybody.

Good Luck,

Kishor Mehta

SIVARAMAPRASAD KAPPAGANTU (Retired Manager)     26 October 2016

" should not sign introduction form or stand guarantee for anybody..." I do not agree with this. Signing introductionand standing guarantee are two different matters. While one is signing introduction, such person is merely declaring that so and so person is known for so much of period and no other liability is expressly admitted therein.  However, while standing guarantee, it is expressly admitted that in case the principal debtor fails to make good the money loaned, the guarantor would make it good.


I have been working in a Bank for more than 3 decades and I have not come across where bank proceeded against introducer in a Court of law.  Yes, Banks may approach the introducer for further details and tracing the person whom he/she introduced in the first place.  Other than that there is no liability.


Kishor Mehta (CEO)     26 October 2016

Sir, With due respect to Shri SIVARAMAPRASAD KAPPAGANTU. I request him to refer to the case cited by Shri Arvind Singh Chauhan hereabove,  viz.

CASE NO.: Appeal (crl.)  650 of 1998
DATE OF JUDGMENT: 21/04/2004

this is a classic case where the petitioner was taken to court for having introduced someone, who had later defrauded the Bank. 

Further, to introduce someone you do not personally know is a fault in itself and may put you to unnecessary and unthought of harassment.

Good Luck,

Kishor Mehta

Kumar Doab (FIN)     26 October 2016

This thread has provided good information and quality discussion for the readers.

Thanks to Mr. Arvind Singh Chauhan for sharing the judgment and all participants/contributots/members, for moderating the discussion.

SIVARAMAPRASAD KAPPAGANTU (Retired Manager)     27 October 2016

Kishore Mehta Jee my limited point is that signing for introduction for opening of a Bank account and signing as Guarantor for a loan to be given by Bank are two different matters and cannot be equated.


Further, OK there was at last one case law where introducer was implicated. But the judgementis is not against the introducer.  So, my point is that we can caution the Deepak, a student, who asked the question in the first place but there is no need to scare him just because he signed as introducer for an unknown person.  The long shot of a case being filed against him is not even one in a million in that the unknown fellow to whom he signed introduction should misuse the account and defraud the bank and bank should take a view that the account would not have been opened but for the introduction of Deepak and take a decision to file suit against Deepak.  These are not old days at which time, even Banks were used to file suits left and right for frivolous causes too.  Now, everybody knows the snails pace at which courts work as a direct result of disproportionate workload.  So everybody especially public organisations like Banks are behaving responsibly and trying to avoid filing suits against anybody leave alone introducer.


deepak (student)     27 October 2016

Thanks you to all for  giving helpful information


Kumar Doab (FIN)     28 October 2016

You are welcome.

It is good to see that soem querists come back to thank the experts. 


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