Who Is a Nom­i­nee?

Consumer Voice - - Nominee For Your Bank Deposit Account -

A nom­i­nee is only a cus­to­dian of the de­posit and his/ her re­spon­si­bil­ity is pri­mar­ily to en­sure that the le­gal heir of the de­pos­i­tor gets the money from a fixed de­posit. S\he pri­mar­ily be­comes the op­er­a­tor of the ac­count in the event of the demise of the de­pos­i­tor and does not ac­tu­ally own the money or have any le­gal right over the same.

Who Is a Le­gal Heir?

A le­gal heir, sim­ply put, is a per­son de­fined by a will as the per­son who should re­ceive the ben­e­fits of the de­ceased’s es­tates and, in this case, the money from the fixed de­posit.

The Nom­i­nee Talk

If you have been fol­low­ing the fi­nan­cial news, you would have seen the word ‘nom­i­nee’ here and there. This is hap­pen­ing pri­mar­ily be­cause sev­eral com­mer­cial banks have iden­ti­fied in­op­er­a­tive, frozen or in­ac­tive ac­counts that have funds but not a nom­i­nee. Some of these are long-term fixed de­posits that have ma­tured with the promised in­ter­ests, but are yet to be claimed by the ac­coun­thold­ers or de­pos­i­tors. As there are no nom­i­nees for these ac­counts, the de­posits are in a limbo, with­out hav­ing

The Act was amended by Bank­ing Laws (Amend­ment) Act, 1983, by in­tro­duc­ing new Sec­tions 45ZA to 45ZF, which pro­vide, in­ter alia, for the fol­low­ing mat­ters: • To en­able a bank­ing com­pany to make pay­ment to the nom­i­nee of a de­ceased de­pos­i­tor, the amount stand­ing to the credit of the de­pos­i­tor. • To en­able a bank­ing com­pany to re­turn the

ar­ti­cles left by a de­ceased per­son in its safe cus­tody

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