"What Is a Nominee in Banking? New Rules Explained!"

Описание: Banking Laws (Amendment) Bill Passed: 4 Nominations Now Allowed In BankAccountsThe option of making four nominees in the bank accounts means more flexibility to the customers in choosing more than one person as their nominee and dividing account holdings amongthem. One more important benefit and purpose of more than one nominee is to reduce the unclaimed deposits in the Depositor Education and Awareness (DEA) Fund, which is growing everyyear.
As per the annual report of the RBI, unclaimed deposits grew from Rs 62,225 crore at the end of March 2023 to Rs 78,213 crore at the end of March 2024, indicating a 26 per cent increase inone year. With more nominees in one account, there are high chances of awareness about the account and claims the unclaimed amount.
Simultaneous And Successive Nomination:
Simultaneous nomination
means that all nominees are simultaneously eligible to receive the account proceeds in case of the accountholder's death.The nominees will be eligible to receive the amount as per the percentage specified by the deceased account holder.
Successive nomination
means that even if there is more than one nominee, all are not eligible to receive the proceeds from the account at the sametime. The nomination in this case will become effective for one nominee at a time in the order specified by the account holder. So, upon the death ofthe account holder, the first nomination will become effective and in the absence of the first nominee, the second nomination will become effective,and so on.