Nomination in Banking Account and Safe Custody/Lockers
Nomination in banking terms is the facility simplifies the procedure for settlement of claims of deceased depositors as the bank will make payment of the balance outstanding in a depositor’s account at the time of his death or delivering contents of locker to the nominee. The Banking Regulation Act, 1949 was amended by Banking Laws (Amendment) Act, 1983 by introducing new Sections 45ZA to 45ZF to enable nomination in deposit account and safe locker.
Nomination in Banking Deposit Account
The nomination in deposit account is made in accordance with Section 45ZA of Banking Regulation Act, 1949. It enables depositor to nominate a person to whom in the event of his death, the amount of deposit may be returned by the banking company. If nominee appointed is minor, the depositor can appoint a person who may receive deposit on behalf of minor in the event of his death. Payment by a bank in accordance with these provisions constitutes a full discharge to the bank of its liability in respect of the deposit. However it does not affect the right or claim which any person may have against nominee who receives the deposit.
Nomination in Safe Custody and Lockers
The nomination in safe custody and lockers can be made in accordance with Section 45ZC and 45ZE of Banking Regulation Act, 1949. If person leaves any article in safe custody or lockers with a bank, he may nominate a person who will receive the article left in safe custody/locker in the event of death of the person. If nominee appointed is minor, the person making a nomination can appoint a person who may receive the articles on behalf of minor in the event of his death.
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