NOMINATION FOR BANK ACCOUNTS - DEPOSIT,SAFE CUSTODY, LOCKER--IMPORTANT POINTS -- SBI PO/CLERKS -IBPS PO/CLERKS

Nomination is available for

(a) all types of Deposit accounts - whether domestic or foreign currency,

(b) safe custody of article accounts in single name and

(c) all types of locker accounts.

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LEGAL PROVISIONS:

Nomination provisions are as per Section 45-ZA&ZB of Banking Regulation Act, for deposits,

Sec 45-ZC&ZD for safe deposit of articles

and Sec ZE &ZF for locker accounts.

COMPULSORY NOMINATION: Nomination is compulsory for single name accounts. If customer does not want nomination, he has to give in writing.

NAME OF NOMINEE: If customer wants name of nominee to be written on FDR or pass book, banks to follow his instruction.

STATUS OF NOMINEE: A trustee for legal heirs.

OTHER IMPORTANT POINTS ABOUT NOMINATION:

1. Nomination can be for individual accounts only such as single name, joint name or proprietorship accounts. It is not available for firms, companies, trusts, societies etc.

2.Who can be nominee: Only an individual can be a nominee. He can be Resident or Non-resident, minor or even an insolvent person. (where nominee is a minor, the account holder to disclose the name of person, who is to be obtain payment on behalf of the minor, in case of customer's death)

3.Nomination can be made any time from opening of account to closure of account. It can be cancelled and changed any time and any no. of times.

4. NO. OF NOMINEES: There can be one nominee in case of (a) a deposit account, (b) safe deposit of article accounts, (c) locker accounts in single name or joint either or survivor lockers.

But for joint operation locker account, each holder can have his own nominee. As per IBA, max no. of nominees in joint lockers can be 2.

5. PAYMENT TO NOMINEE: On death of account holder bank to deal with only the nominee and no one else (such as legal heirs) in any circumstances. However, in case of Court Orders, paymet to be made as per court order.

If nominee does not come for 6 months for deposit accounts and 3 months, in other cases, bank is to contact the nominee.

6. In case of FDR, if renewal is within same account, previous nomination continues.

7. JOINT ACCOUNTS - In case of joint deposit account and joint locker accounts nomination to be made by all persons.

8. In case of jointly operated locker accounts, in case of death of any of locker holders, the contents shall be delivered to the survivor locker holders and the nominee of the deceased locker holder.

9. In case of jointly operated joint deposit accounts, the payment shall be made to survivor and legal heirs of the deceased account holder. If all account holders die, the payment can be made to nominee.

10. Nomination cannot be accepted in Joint safe deposit of article accounts.

11. Payment of FDR can be made to nominee. But he cannot give discharge for raising loan against FDR.