Number of Nominees

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Akshit Jain (Querist)
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29 October 2024 Do the RBI rules stipulate that there can be only nominee for a savings account and fixed deposit account?

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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29 October 2024 No. Account holder can file up to four nominee with shares allotted for each nominee.

Akshit Jain

Akshit Jain (Querist)
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29 October 2024 Is the following rule of Union Bank of India in contravention of RBI rules
"There can be only one Nominee for a deposit account whether held singly or jointly."
See - https://www.unionbankofindia.co.in/english/nomination-facility.aspx

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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29 October 2024 Yes, that was old rule. The new rule is in pipeline.
Key Provisions of the Banking Laws (Amendment) Bill, 2024
The Banking Laws (Amendment) Bill, 2024, proposes to overhaul this framework by allowing deposit holders to appoint up to four nominees for their bank accounts and lockers. This change is expected to provide greater flexibility and security to depositors, enabling them to ensure a more equitable distribution of their assets.
Increased Number of Nominees: The Bill proposes that depositors can now appoint up to four nominees for their accounts and lockers. This can be done either successively or concurrently for deposits, whereas for other assets, nominees can only be appointed sequentially. This change is designed to accommodate the needs of depositors who wish to designate multiple beneficiaries.
Proportional Nomination: For accounts with multiple nominees, the nomination will be effective in a predetermined proportion. This ensures that each nominee receives a specified share of the assets, which can prevent disputes and ensure that the depositor's wishes are respected.
Refer: https://www.msn.com/en-in/money/news/bill-to-provide-up-to-four-nominees-to-a-bank-account-introduced-in-ls/ar-AA1ovBwI

Akshit Jain

Akshit Jain (Querist)
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29 October 2024 Is the Banking Laws (Amendment) Bill, 2024 passed by parliament and signed into law by the president of India?

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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29 October 2024 Probably no, not sure.
The Banking Laws (Amendment) Bill, 2024 was introduced in Lok Sabha on August 9, 2024. It amends the: (i) Reserve Bank of India (RBI) Act, 1934, (ii) Banking Regulation Act, 1949, (iii) State Bank of India Act, 1955, (iv) Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970, and (v) Banking Companies (Acquisition and Transfer of Undertakings) Act, 1980.

Akshit Jain

Akshit Jain (Querist)
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29 October 2024 The bill is not passed yet.
https://mpa.gov.in/bills-list

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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29 October 2024 Ok, got it.
Either wait for filing nomination, or it can be changed later.

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