Banking Rules: After the Banking Laws (Amendment) Bill, 2024 is passed in the Lok Sabha, bank account holders will be able to add four nominees instead of one in their account.
Bank Nominee: Bank account holders will now be able to add not one but four nominees to their bank account. That is, account holders will be able to make four people nominees instead of one. Keeping in mind the better experience and security of the customers, the Banking Laws (Amendment) Bill, 2024 was passed in the Lok Sabha in the winter session of Parliament.
Under this provision, now you will be able to make four nominees instead of one not only for bank accounts but also for bank lockers and other banking facilities.
There will be convenience in dividing the amount deposited in the account
Under the rules made till now, there was a rule to make only one person nominee for bank accounts (savings, fixed deposit, recurring deposit), but now bank account holders will be able to decide who and how much the amount deposited in their account is to be distributed. This will also facilitate the bank in distributing the amount deposited in the account.
Freedom from the hassle of legal disputes
In the earlier rule, if the nominee died before the account holder, there was a problem in transferring the deposited amount. In the absence of any other nominee or will, there was a delay in the transfer of money due to legal procedures.
If no one claims the money lying in savings or current accounts for 10 years or more, the bank puts that unclaimed deposit in the Depositors Education and Awareness Fund (DEAF). By having four nominees instead of one, the bank will not have to face any legal dispute in distributing the amount deposited in the account.
Joint Nominee – In this, on the death of the account holder, the right to the property goes first to the first holder and then to the rest of the nominees.
Successive Nomination– In this, on the death of the first nominee, the deposit is transferred to the other nominees in sequence, for example, after the death of the account holder, his wife gets the right to the property, after the wife, the son and after the son, the daughter is entitled.
Many benefits of increasing the number of nominees
The decision to increase the number of nominees in bank accounts will give many benefits to the customers, such as first of all, it will reduce disputes among the heirs. Along with this, the financial security of the customers will also be strengthened.