Have you filled the nomination form for your bank accounts and safe deposit locker? If so, have you got an acknowledgement from the bank, confirming registration of the nomination? If your answer to either or both of these questions is in the negative, I would suggest that you complete these essential formalities without any delay and also take your bank to task for not reminding you of it. The banking regulator has been asking banks to comply with these legal formalities, but banks often ignore this important advisory. In some cases, they might get the new customers to fill up the form, but not bother to ensure that old customers also follow suit. In fact, in its latest master circular on customer service released in July this year, the Reserve Bank refers to an observation made by Allahabad High Court, wherein it said, “It will be most appropriate that the Reserve Bank of India (RBI) issues guidelines to the effect that no savings account or fixed deposit in single name be accepted unless name of the nominee is given by the depositors. It will go a long way to serve the purpose of the innocent widows and children, who are dragged on long drawn proceedings in the court for claiming the amount, which lawfully belongs to them.” The regulator also points out that some banks do not have a system of acknowledging the receipt of the duly completed nomination form. Saying that this did not meet with the legal requirements, the RBI says that “banks should strictly comply with the provisions of the Banking Regulation Act, 1949, and the Banking Companies (Nomination) Rules, 1985, and devise a system of acknowledging the receipt of the duly completed form of nomination, cancellation and even changes in the nomination. Such acknowledgement should be given to customers irrespective of whether the same is demanded by them.” The regulator also emphasises that banks are required to register in their books, the nominations and alterations (if any) made by the customers. The RBI also advises banks to indicate on the passbook, whether the account holder has availed of the nomination facility and whether it has been duly registered by stamping the inscription “nomination registered”. The regulator has also asked banks to educate customers on the importance of nomination and give the subject wide publicity — even put reminders in cheque books. So if your bank is not following this mandate, get them to do it. Complain, if necessary, to the RBI.
The Telegraph
