I want to appoint nominee for saving account. How to appoint?
It is important to appoint a nominee for all your assets so that the assets reach the right person in the event of your death. The nominee you select must be a reliable person who can take care of the asset. So while you open a bank or Fixed Deposit account, the bank asks you to mention the nominee.
The nominee for a savings account or FD is registered as per Section 45ZA(2) (Banking Regulation Act). The Act says that the nominee has all the rights to receive the money from the bank account, albeit bank laws do not have any association with succession laws. You can decide who can be your nominee in a bank account. But in the event of any dispute between the nominee and the legal heir, succession laws legally must be checked with a lawyer.
Role of the nominee:
• Nominee is a mere custodian of the account or FD.
• He is the contact person for the account, in case the account holder is not reachable or in an event of the account holders death.
• At the time of claiming for the deposit, the nominee will have to provide identification proof.
Procedure for appointment of the nominee:
• Individual, single or joint account holders can appoint nominee. Hindu undivided family, trust, society etc. cannot appoint a nominee.
• The nominee must be an individual.
• It is advisable to appoint a nominee as there will be less trouble in transferring the money in an event of the account holder’s death.
• Only one person can be appointed as the nominee.
• If you don’t appoint a nominee at the time of investment, you can appoint one at a later date. Relevant application forms are to be submitted to the bank.
• The bank provides a column to fill out the nominee details while taking a fixed deposit.
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