One of the golden rules of safe banking is the ‘Nomination Facility’, tool. Nomination facility, if availed, would ensure smooth settlement of claim to the nominee.
Cooperative Banks were interpreting a RBI guideline on Nomination, which was not customer-friendly. Hence, RBI’s UBD Department has issued a clarification to ensure customers are troubled unnecessary.
RBI has clarified that for the various Forms (DA1, DA2, and DA3 for Bank Deposits, Forms SC1, SC2 and SC3 for articles in safe custody and Forms SL1, SL1A, SL2, SL3 and SL3A for Safety Lockers) prescribed under the Co-operative Banks (Nomination) Rules, 1985 only Thumb-impression(s) shall be attested by two witnesses. The signatures of the account holders need not be attested by witnesses.
It is to be understood that Nomination is solely for the purpose of simplifying the procedure for settlement of claims of deceased depositors and does not take away the rights of legal heirs on the estate of the deceased.
The nominee is only a trustee of the legal heirs. Nomination facility is intended only for individuals including a sole proprietary concern. Yes, Nomination can be made in favour of minor also.
There cannot be more than one nominee in respect of single/ joint deposit account. However, nomination in favour of more than one person is permissible in jointly operated locker account with common consent.
Bank allows variation/ cancellation of a subsisting nomination by all the surviving depositor(s) acting together.
In a joint account the nominee’s right arises only after the death of all the depositors.
Re-disseminated by Prashant N. Banker by daytime, blogger by night.
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