Nomination
1. Availability of Nomination
1.1 Nomination facility is available on all deposit accounts, safe deposit locker held by individual or any proprietorship firm of individual.
1.2 Nomination facility is not available for any deposit accounts, safe deposit locker held under representative capacity i.e. Nomination can’t be made for deposit account or safe deposit locker held by Partnership firm, HUF, Company, AOP, BOI, Trust, LLP, Society etc.
1.3 Nomination facility is available for deposit accounts or locker held in the name of Minor. In such case nomination can be done by natural or legal guardian as the case may be. Such Nomination become void when minor becomes major and fresh nomination shall be made by minor on becoming major.
2. Who can be nominee
2.1 Any individual can be nominee. He /or she does not need to be resident of India or relative of Account/locker holder.
2.2 If appointed nominee is not resident of India than proceeds of deposit accounts, locker items will be handed over to nominee subject to rules made for transfer to nonresident of india under various act including Income tax act, Foreign exchange management act etc.
2.3 Minor can be appointed as nominee. However in such case other major person shall be appointed to receive the amount of the deposit on behalf of the minor nominee in the event of death of deposit holder during the minority of the nominee.
3. Type of Nomination & Number of Nominee
3.1 Deposit Accounts: There are two type of nomination available for deposit accounts. 1. Successive Nomination and 2. Simultaneous Nomination. Deposit holder can choose either of nomination method for each deposit account. Both Method can’t be used together for any deposit account.
3.2 Safe Deposit Locker: In case of Safe Deposit Locker only Successive Nomination Facility is available.
3.3 Nomination can be done in favor of more than one person but not exceeding Four.
4. Successive Nomination
4.1 Where the nomination is made successively in favour of more than one person, the nomination shall be effective only in favour of one person in the order of priority specified. (More than one nominee allowed with each having 100% share in order of propriety specified)
4.2 Nomination of the first nominee shall be effective if that nominee survives the person or persons who made the nomination.
4.3 Nomination of the second nominee shall become effective only after the death of the first nominee
4.4 Nomination of any nominee lower in the order of nomination shall become effective only after the death of all the nominees whose names are above in the order of nomination.
4.5 Where the order of nomination is not mentioned, persons shall be deemed to have been nominated in the order in which their names appear in the nomination.
5. Simultaneous Nomination
5.1 Where the nomination is made simultaneously in favour of more than one person ,the nomination shall be effective in favour of all such persons in proportion to which it is declared, and the following terms and conditions shall apply, namely:—
5.2 The nomination shall not be made in favour of more than four persons;
5.3 The nomination shall explicitly state the proportion of amount of deposit in percentage in favor of each nominee.
5.4 The nomination shall be made in respect of the whole amount of deposit;
5.5 If any nominee dies before receiving deposit from the banking company, the nomination in respect of such nominee alone shall become ineffective and the amount of deposit purported to be nominated in favour of deceased nominee shall be treated as if nomination had not been made in respect of that portion of deposit.( i.e. such portion of deceased nominee will be settled as if no nomination is made in anyone’s favor) And the portion of deceased person will be distributed among legal heirs.
5.6 Any nomination which does not comply with any of the terms and conditions specified above shall be invalid, as if nomination had not been made by the depositor or all the depositors together, as the case may be.
6. Consent of all Account/Safe deposit locker Holder.
6.1 If any deposit account or safe deposit locker is held by more than one person than any nomination made, cancelled or any modification shall not be valid unless it is made by all deposit/safe deposit locker holders.
7. Acknowledgement.
7.1 Any nomination/cancelation /modification shall be verified by Bank and acknowledgment shall be sent to account/locker holder within three days.
7.2 Any nomination/cancelation /modification made are not in accordance with prescribed guidelines such nomination shall be rejected and such rejection shall be communicated to customer within 3 days of receipt.
8. Other Rules
8.1 Signature of two witness to be obtained in nomination form if locker/deposit holder/s is using his/her thumb impression for operations in account/locker.
8.2 Any payment made by bank to nominee or any access or handover or article/contents of safe deposit locker made to nominee in accordance with depositor’s mandate for nomination will discharge bank from it's all liability towards deposit holder or any of his legal heirs or claimant. The nominee is only trustee /custodian of the funds in your bank account/ content, articles of safe deposit locker. The rightful owner would be decided as per succession rules and the will of deceased.
8.3 Renewal of deposit does not make nomination invalid.
8.4 Every subsequent nomination made shall cancel the previous nomination
9. The nominee receives the contents as a trustee for the legal heirs /(beneficiaries) and does not acquire absolute ownership by mere receipt
10. In case the nominee is a minor, the bank shall hand over the contents to the legally competent guardian of the minor nominee.
11. The nominee acts as a custodian, with the responsibility to hold the locker contents /amount of deposit for the benefit of the deceased person’s legal heirs.
12. The nominee's receipt of locker contents /deposit amount is not a final settlement of inheritance rights, which may still be subject to legal claims from other heirs.
Making Nomination is advisable to ALL Deposit Holders/Safe Deposit Account Holders
A. Allowing access to deposit amount / contents of safe deposit locker to person selected by account/locker holder.
B. Easy Process with less documents to settle claim in case of death of account /locker holder.
C. No or lesser stamp duty /notary /valuation charges to settle claim in case of death of account /locker holder
