Nomination
Facility in Deposit Account
PNB
offers nomination facility in deposit accounts, locker facility, safe
custody etc. In an unfortunate event of the death of a depositor
, nomination enables the bank to :
- make payment to
the nominee of a deceased depositor, of the amount standing to the credit
of the depositor,
- return to the
nominee, the articles left by a deceased person in the bank's safe
custody,
- release to the
nominee of the hirer, the contents of a safety locker, in the event
of the death of the hirer.
Thus, in the event
of death of the holder of a deposit account, a customer who has kept articles
in safe custody with the bank, or the hirer of a safety locker, the nomination
facility enables the bank to release to the nominee, the deposit amount,
or the articles left in safe custody or held in safety lockers, as the
case may be, without insistence on a succession certificate or probate
of the will from the legal heirs of the deceased account holder/customer.
Salient Features of the Nomination Facility
Deposit Accounts:
- Nomination facility
is available to account holders operating Current Accounts, Savings
Bank Accounts, and all types of term deposit accounts.
- Nomination can
be made in favour of one person only.
- Nomination favouring
the minor is permitted on the condition that the account holder, while
making the nomination, appoints another individual not being a minor,
to receive the amount of the deposit on behalf of the nominee in the
event of the death of the depositor during the minority of the nominee.
- Nomination can
be made only in respect of a deposit which is held in the individual
capacity of the depositor and not in any representative capacity such
as the holder of an office like Director of a Company, Secretary of
an Association, partner of a firm, Karta of an HUF. and the like.
- In the case of
a deposit made in the name of a minor, nomination shall be made by a
person lawfully entitled to act on behalf of the minor.
- A nomination will
continue to be in force even on renewal of a term deposit, unless specifically
cancelled or changed.
Who
can Nominate?
- Bank account holders
having deposit accounts in their individual names or, in joint names
of two or more individuals.
- A person lawfully
entitled to act on behalf of the minor in respect of a deposit account.
How
to Nominate?
Specific forms are
provided for availing of nomination facility. The account holder/customer
will have to fill in the relevant form. The bank will acknowledge in writing
to the concerned account holder/customer, the receipt of the nomination
form and the nomination will be registered in the books of the bank.
Cancellation
of, Variation in, Nomination
Cancellation of,
or variation in, the nomination can be made at any time as long as the
account is in force. While making nomination, cancellation or variation,
witness is required and the request should be signed by all account holders.
When
The Nominee Makes a Claim
- In order to ensure
that the deposits/articles, are handed over to the genuine nominee,
the bank will insist on Proof
of death of depositor:
- A death certificate
or any other satisfactory mode of proof of death acceptable to the bank,
will have to be furnished.
Identity
of the nominee:
A claim format establishing
the claim of the nominee duly certified by
- a Magistrate or
Judicial Official or
- an Officer of the
Central or State Government or
- an Officer of a
bank or
- two persons acceptable
to the bank who will act reference.