NOMINATION-A Comprehencive guide.

Bank Accounts,Locker Account and Safe Custody Accounts :

Salient features:

Nomination facilitates the Banks to pay the dues/ deliver the articles of the deceased depositor to nominees.

Nominee not required to submit succession certificate /or legal heir certificate.

Nomination is solely for the purpose of simplifying the procedure for settlement of claims of deceased depositor.

Nomination does not take away the rights of legal heirs.

The Right of successors / legal heirs prevails over Nominee & Joint Account Holder.

Nomination facility is available to accountholders operating.

1. Current accounts.
2. Savings bank accounts.
3. Term deposit accounts.
4. Safe deposit lockers.
5. Safe custody of articles.

The Banking Regulation Act allows single or joint deposit holders to appoint a nominee for their deposit.
Such a nominee can also be appointed for items left in custody of a bank or for a locker hired from a bank.
The nominee can access the deposit, articles, or locker in case of death of the person who nominated him.
The The Banking Laws (Amendment) Bill, 2024 allows the appointment of up to four nominees for these purposes.
For deposits, such nominees can be appointed either successively or simultaneously
while for other purposes they can be appointed successively.
In case of simultaneous nominees, the nomination will be effective in a declared proportion.
For successive nomination, the nominee who has been named higher in the order of nomination will receive priority.

In case of minor's account, person lawfully entitled to act on behalf of the minor can make nomination.

A minor can be Nominated as "nominee".

A non - resident can be nominated as a nominee in a resident account.

Nomination is to be filed in the prescribed forms .

In Joint Accounts,all the joint Account holders must sign the Nomination Form

Thumb-impressions(s) in Nomination Form should be attested by two witnesses.

Signatures of the account holders in the nomination form need not be attested by witnesses.

Nominee need not sign the Nomination Form

Nomination can be changed or cancelled subsequently.

Nomination Forms to be used:

Nomination - Deposits DA-1

Cancellation of Nomination - Deposits DA-2

Variation of Nomination - Deposits DA-3

Nomination-Safety Locker Sole Hirer SL-1

Nomination-Safety Locker (Joint Hirers) SL-1A

Cancellation of Nomination-Safety Locker SL-2

Variation of Nomination-Safety Locker (Sole Hirer) SL-3

Variation of Nomination-Safety Locker (joint Hirers) SL-3A

Nomination-Safe Custody Articles SC-1

Cancellation of Nomination-Safe Custody Articles SC-2

Variation of Nomination-Safe Custody Articles SC-3

For details approach your banker.

1.Read Banking Laws Amendment Bill 2024 for change in nomination rules.

2.The Banking Companies (Nomination) Rules, 1985 - Clarifications.

3.Extension of Safe Deposit Locker / Safe CustodyArticle Facility and Access to Safe Deposit Lockers /Return of Safe Custody Articles by banks.