After amendment in banking law, now account holders will be able to add 4 nominees instead of one.

Bank Nominee: Bank account holders will now be able to add not one but four nominees to their bank account. That means the account holder will be able to nominate four people instead of one. Keeping in mind the better experience of customers and their security, 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 distributing the amount deposited in the account

Under the rules made till now, there was a rule to make only one person the nominee for bank accounts (savings, fixed deposits, recurring deposits), but now bank account holders will be able to decide to whom and how much the amount deposited in their account will be distributed. Is. This will also facilitate the bank to distribute the amount deposited in the account.

Get rid of the hassle of legal disputes

Under the earlier rule, if the nominee died before the account holder, then there was difficulty in transferring the deposited amount. Secondly, in the absence of any nominee or will, there was a delay in transfer of money due to legal procedures.

If no one makes any claim on the money lying in savings or current accounts for 10 years or more, then the bank puts that unclaimed deposit in the Depositors Education and Awareness Fund (DEAF). Due to 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 remaining nominated persons.
• Successive nomination- In this, on the death of the first nominee, the deposit is transferred to the remaining nominees in sequential order, such as 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 bring many benefits to the customers like first of all, it will reduce disputes among the heirs. Along with this, the financial security of the customers will also be strengthened.

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