What is the nomination facility?
A nomination is a right given to the holder of a bank account to appoint one person who will receive the funds after the death of the account holder. The bank can directly release the account proceeds to the nominee without a succession certificate, letter of administration or court order.
It is available for all types of deposit accounts of the individuals. It can only be made in favor of one or more persons. If the deposit is made in the name of a minor, the nomination shall be made by a person who is legally entitled to be on behalf of the minor. The nomination will continue even in a renewal of a term deposit until canceled or changed.
Nomination can be made in favor of one person only. But up to 2 persons more can be nominated with common consent.
Nomination can be canceled anytime during the lifetime.
How you can add a nomination?
- The request for a nomination can be filed for a single account or a joint account with form no. DA-1.
- This form is applicable for all types of bank accounts i.e. savings account, recurring deposit account, fixed deposit account, and even a current account.
- The nomination form can be submitted at the time of opening the account or any time later by submitting the above form to your bank.
- The form can be downloaded from the bank website. The account holder’s details, deposit details, and nominee information must be filled. The form must be signed by all account holders.
- If the nomination is made in favor of a minor, details of the guardian of the minor also have to be mentioned in the nomination form. The guardian should be an adult and will get the amounts in the account on behalf of the minor in case of death of the account holder till the minor nominee attains majority.
To modify the nominee details:
- If you want to modify the existing nomination, you will have to submit form no. DA-3.The submitted nomination can be canceled later by submitting form no. DA-2.
- If you submit a request for cancellation of the nomination, it is advisable to immediately submit a new request for nomination in form no. DA-1.
- The cancellation and modification process can be made as many times required by filling these forms.
- But it is important to receive a written acknowledgment of any of the requests made to the bank.
- A photocopy of these forms should be kept in case of any dispute in the future. And whenever there is any deletion or addition to the original bank account, ensure that the nomination form is also filled and signed by all the account holders at the time.
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