Nomination For Saving Account: The purpose of giving nominee in bank account and locker is to reduce the trouble of family members on the death of the account holder. According to the notification of RBI, it was found that the name of the nominee has not been given in a large number of savings accounts.
RBI Nomination Notification: Thousands of crores of rupees are lying in the banks and NBFCs of the country, which have no claimants. Some of these accounts do not even have the details of the nominee. Having a nominee would have helped the banks in reducing the unclaimed amount. Keeping this in mind, the Reserve Bank of India (RBI) has issued a notification, in which it has been said that the option of nominee is not available for the existing savings account with banks and NBFCs. RBI asked banks to name nominees in savings accounts and safety lockers of new and all existing customers.
Nominees not available in a large number of savings accounts
The central bank (RBI) said that no nominee has been made in a large number of accounts. The purpose of giving nominees is to reduce the trouble of family members on the death of depositors and to settle claims quickly. According to the notification of the central bank, based on the assessment of the Reserve Bank, it was found that nominees are not available in a large number of savings accounts. The central bank said, ‘To avoid inconvenience and difficulty to the family members of the deceased depositor, we insist on naming a nominee for all existing and new customers who have savings accounts, safe custody articles and safety lockers.’
Progress report will have to be updated on the portal every quarter
The RBI said that the Customer Service Committee (CSC) of the Board of Directors should review the achievement of nomination coverage on a fixed period. The progress report in this regard should be given on the Reserve Bank’s Daksh portal on a quarterly basis starting from March 31, 2025. The notification also said that in addition, the frontline staff in the branch may be suitably trained to receive the nominee as well as to properly settle the claims of the deceased constituents and deal with the nominees / legal heirs.
The RBI said that the account opening form may be suitably modified (if not done earlier) to provide for the customers to avail or opt for the nominee facility. Apart from informing the customers directly, the concerned banks and NBFCs have also been asked to publicise the benefits of using the nominee facility through various media, including launching campaigns from time to time to achieve full coverage of all eligible customer accounts.
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