A doc maintained by a monetary establishment, it serves as an official file of an account holder’s handwritten identify. This file is used to confirm the authenticity of signatures on checks, withdrawal slips, and different transaction-related paperwork. It offers some extent of comparability for financial institution employees when processing transactions, guaranteeing that the particular person authorizing the switch of funds or different account exercise is, in reality, the licensed account holder.
This file performs an important position in stopping fraud and defending account holders’ belongings. Traditionally, it was the first technique of signature verification. Whereas know-how has launched extra superior strategies like digital signatures and biometric authentication, this bodily or digital file of a handwritten identify stays a elementary side of account safety and compliance inside the banking business. It acts as an important safeguard, decreasing the danger of unauthorized entry and potential monetary loss.