Nom­i­nee for Your Bank De­posit Ac­count

Let there be no con­fu­sion

Consumer Voice - - Contents -

Abankisaplace­wheretheylendy­ouanum­brel­lain­fair­weatheran­dask­forit­back­whenit be­gins to rain. ~ Robert Frost

Com­mon con­sumers, es­pe­cially those with ba­sic bank­ing needs, con­tinue to re­main ig­no­rant or con­fused about sev­eral typ­i­cal bank­ing ter­mi­nolo­gies. If the term also has an­other mean­ing in gen­eral English, it be­comes for­eign to some with re­gard to its us­age in banks. One such term is ‘nom­i­nee', es­pe­cially be­cause it is more of­ten used or talked about for fil­ing can­di­da­ture for some elec­tions. Here, we will look at what ‘nom­i­nee' means in bank­ing terms, how it is dif­fer­ent from ‘le­gal heir', and whose claim is greater should a con­flict arise.

Most Con­fus­ing: Nom­i­nee ver­sus Le­gal Heir of Fixed De­posits

Imag­ine a sce­nario where Mr Verma de­posits a size­able sum of money in a fixed de­posit and makes his wife the nom­i­nee. In case Mr Verma passes away due to some un­for­tu­nate in­ci­dent/ac­ci­dent, the fixed amount should go to the nom­i­nee, who in this case is his wife. Ev­ery­thing seems to be in or­der. How­ever, what if a con­flict oc­curs? What if some­one from Mr Verma’s fam­ily comes for­ward claim­ing that they are the de­ceased per­son’s le­gal heirs and that they are en­ti­tled to the money given to the nom­i­nee? The mat­ter goes up in front of a judge and the judge rules that the money, as­sum­ing the claimant is in­deed the de­pos­i­tor’s le­gal heir, goes to the le­gal heir. How can this hap­pen?

It may come as a sur­prise to you but a nom­i­nee, in fact, is not the same thing as a le­gal heir and the claim of a le­gal heir su­per­sedes that of the nom­i­nee.

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