Professional Documents
Culture Documents
However, if the depositor dies without any nomination for the deposit, the legal heirs
will have to either bring a succession certificate from a court or claim the money from
the bank through a lengthy, expensive and cumbersome process commonly known as
Settlement under Indemnity-cum-Affidavit basis.
In view of the above, all depositors have to insist on utilising the Nomination Facility
in their own interest. To use the nomination facility, depositors have to fill in a form
(which will be provided by the bank) and submit the same to the bank. Bank’s will
register the name of the nominee in their books and give an acknowledgement to the
depositor for having registered the nomination as per the depositor’s requirement.
All commercial banks in India are governed by provisions of the Banking Regulation
Act of 1949 and The Banking Companies (Nomination) Rules, 1985. The Nomination
Rules of 1985 were framed by the Government of India in consultation with the
Reserve Bank of India.
Reserve Bank of India has been, time and again, sensitizing commercial banks in
India about the importance of Nomination Facility and has been advising banks to
give wide publicity to Nomination Facility and provide guidance to the depositors –
new as well as existing.
1. What is a nomination?
Page 2 of 5
Rama Krishna Vadlamudi, HYDERABAD April 18, 2011
www.scribd.com/vrk100 vrk_100@yahoo.co.in
MY BLOG: www.ramakrishnavadlamudi.blogspot.com
o Yes. Where the nominee is a minor, the depositor or, as the case may
be, all the depositors together, may while making the nomination,
appoint 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 or, as the case may be, all the depositors, during the minority
of the nominee.
Page 3 of 5
Rama Krishna Vadlamudi, HYDERABAD April 18, 2011
www.scribd.com/vrk100 vrk_100@yahoo.co.in
MY BLOG: www.ramakrishnavadlamudi.blogspot.com
13. What are the procedure to be followed by the nominee while claiming the
amount from the bank after the death of the depositor?
o The depositor will be sure that the monies/articles left by him/her will
go to the person(s) as desired by him/her provided the depositor has
submitted a valid nomination to the Bank before his/her death.
o In the event of unfortunate death of the depositor, the nominee can get
the monies deposited with the Bank very easily and in a quick manner
where nomination is available. Settlement of claims on the basis of
Indemnity/Affidavit or Succession Certificate is very expensive,
lengthy and burdensome – both to the Bank as well to the claimants.
Page 4 of 5
Rama Krishna Vadlamudi, HYDERABAD April 18, 2011
www.scribd.com/vrk100 vrk_100@yahoo.co.in
MY BLOG: www.ramakrishnavadlamudi.blogspot.com
16. Whether banks can enter the name of the nominee in pass books/deposit
receipts?
17. What are the nomination forms available in case of deposit accounts?
o DA 1 – appointment of nomination
o DA 2 – cancellation of nomination
o DA 3 – variation of nomination
o These three are standard formats for bank deposit accounts.
18. What are the statutes that provide nomination facility to bank
depositors?
References:
Page 5 of 5