Do Not Fail To Nominate!
Nomination is an important facility which every person should be knowing while opening any account with a bank just to obviate a lot of hassles and a costly legal process in case of death. There are many instances where it is found that due to the ignorance or casualness on the part of the account- holder, messy situations are created leaving the survivors or inheritors with no other than going for execution of a legal process to obtain succession certificate to have access to the money in the account. The Banking Laws Amendment Act,1983 has provided the facility of nomination and all constituents who have deposit accounts, safe deposit lockers and safe deposit accounts are eligible to enjoy this facility. The sole depositor or all the joint depositors can opt for nomination of a person who would receive the amount of deposit in the event of death of the sole depositor or all the joint depositors.
It is important to note an adult or even a minor who is an Indian Citizen or Non-Resident Indian could be a nominee and the point to note in the case of nomination of a minor is to appoint a person who is an adult to receive the on behalf of the minor after the death of the account-holder during the minority of the nominee. There are certain cases where a court appointed guardian can take the place of a natural guardian.
A nomination can be effected any time during the currency of the holding of a deposit by the depositor/s which may be in the form of safe deposit lockers and articles. There are designated forms and appropriate forms should be used for nomination, cancellation of nomination and renomination.
The facility of nomination is not available for the deposit held under fiduciary capacity such as company, partnership firms, societies, association, government or quasi-government departments or corporations. Similarly a minor can not be nominated for a safe deposit locker and nomination in favour of a minor in in single name is not acceptable unless a person is lawfully appointed to act on his behalf.
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