While opening deposit accounts with banks the facility of nomination is provided to minimize scope for harassment at a later date. Settlement of deceased accounts had become a major problem for banks as the legal heirs were complicating the issue. Moreover the rightful owner of the funds in the deceased deposit account was being needlessly harassed for want of clarity in the matter. Nomination in deposit accounts of individuals has therefore become mandatory to mitigate the problems in settlement of deceased accounts.
The depositor may nominate a person to whom the bank may make the payment of the balance in the deposit account in the event of his death. The nomination confers the right upon the nominee to receive the amount in the account of the deceased from the bank. The right of any other person against the nominee is not affected by such payment.
Separate nominations for each deposit account can be made and nominations can be changed any time during the period of deposit. In case of joint accounts all the account holders have to jointly nominate an individual.
The depositor may nominate a person to whom the bank may make the payment of the balance in the deposit account in the event of his death. The nomination confers the right upon the nominee to receive the amount in the account of the deceased from the bank. The right of any other person against the nominee is not affected by such payment.
Separate nominations for each deposit account can be made and nominations can be changed any time during the period of deposit. In case of joint accounts all the account holders have to jointly nominate an individual.
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