Salient features of Nomination:
- Nomination facilitates faster and easier release of funds/articles without insistence on Succession Certificate /Probate of Will.
- Nomination facility is available to accountholders operating current accounts, savings bank accounts and all types of term deposit accounts, safe deposit lockers or safe custody of articles.
- Nomination facility is intended for individuals and sole proprietary concerns.
- Nomination can be made in favour of one person only. It can be made in existing or new accounts and can be cancelled or changed subsequently by the depositors.
- Nomination cannot be made in accounts where deposits are held in a representative capacity e.g. trust accounts etc. and in accounts of partnership firms, H.U.F., companies, associations, clubs etc.
- In case of a joint account of individuals, nomination should be made by all depositors jointly.
- In case of minor's account whether self operated or otherwise, nomination should be made by a person lawfully entitled to act on behalf of the minor.
- Nomination favouring the minor is permitted on the condition that the accountholder, while making the nomination, appoints another individual, not being a minor, to receive the amount of the deposit on behalf of the nominee in the event of the death of the depositor during the minority of the nominee. Date of birth of minor be obtained and noted.
- A nomination will continue to be in force even on renewal of term deposit, unless specifically cancelled or changed.
- Name of existing nominee in respect of specific Term Deposit Receipt will not be added for subsequent deposit receipts. Separate nomination will be obtained for each deposit receipt except where Nomination form is in terms of Deposit Account and NOT TDR numbers.
- Nomination facility is available for savings bank accounts opened for credit of pension. However, Banking Companies (Nomination) Rules,1985 are distinct from the Arrears of Pension (Nomination) Rules,1983 and the nomination exercised by the pensioner under the latter rules for receipt of arrears of pension will not be valid for the purpose of deposit accounts held by the pensioners with banks, for which a separate nomination is necessary in terms of the Banking Companies (Nomination) Rules, 1985 in case a pensioner desires to avail of nomination facility.
- A non - resident can be nominated as a nominee in a resident account. In case of non-resident nominees, the amount entitled to him from the account(s)/deposit(s) of a deceased person, will be credited to his NRO account.
- Notation that 'Nomination registered on ________' will be made in FDR/Pass Book/Statement on registering the Nomination.(Name of nominee will not be mentioned except when it is specifically requested by customer).
Safe custody of articles:-
I. Nomination can be made in favour of one individual only.
II. Where the nominee is a minor, the customer shall, while making the nomination, appoint another individual not being a minor, to receive the articles on behalf of the nominee, in the event of the death of the customer during the minority of the nominee.
III. Nomination facilities are available only in case of individual depositors and not in respect of persons jointly depositing articles for safe custody.
Safe deposit lockers:-
(i) In case of a sole hirer of a safe deposit locker, nomination can be made in favour of only one individual.
(ii) Where the safe deposit locker is hired from the bank by two or more individuals, nomination can be made in favour of one or more persons.
(iii) Where the safe deposit locker is hired in the name of a minor, the nomination shall be made by a person lawfully entitled to act on behalf of the minor.
(iv) A minor can be appointed as a nominee for delivering contents of a hired locker. Section 45 ZE of the Banking Regulation Act, 1949 does not preclude a minor from being a nominee, for obtaining delivery of the contents of a locker. However, the bank in such cases, when the contents of a locker are sought to be removed on behalf of the minor nominee, hand over the articles to a person who, in law is competent to receive the articles on behalf of the minor.