Nomination of bank sb and fd accounts
PRAMOD KUMAR
(Querist) 27 May 2012
This query is : Resolved
Dear Experts.
I would like to know whether it is possible to nominate 2 persons for a SB or FD Account?
Also what happens if the holder of SB or FD account dies without leaving a WILL, But has nominated only one son as nominee and the second son demands a share in the same.
Thanks
Pramod
Suhail A.Siddiqui
(Expert) 27 May 2012
Mr. Promod,
Nominee never become owner of the said property by way of nomination it is settled law. other legal heir may ask their share in absence of will. Case will be decided as per inheritance laws. feel free to contact advsuhail@gmail.com
adv. rajeev ( rajoo )
(Expert) 27 May 2012
You can make two nominees. Duty of nominee is distribute the amount to the legal heirs, he only cannot enjoy it. Legal heirs of deceased can demand their share.
ajay sethi
(Expert) 27 May 2012
nominee is a trustee . if father dies intestate then all legal hiers have right over money lying in savings accounts , fixed depsoits .
Guest
(Expert) 27 May 2012
Yes, two nominations in an account are permissible,
Demand of share by 2nd son is legally valid. But, as of law on nominations, the bank is not obliged to pay any part of the balances to any person other than the nominee, as the bank is obliged to pay the balances only to the nominee, unless there is any direction to the contrary from the court of law.
The 2nd son, of course, can claim his share from the nominee by law, either directly or through an order of the court, as the nnminee has to act as a trustee of the deceased.
R.K Nanda
(Expert) 27 May 2012
No more to add.
c.p.s. ramachary
(Expert) 28 May 2012
Sc 45ZA of Banking Regulations Act 1949 provides for registering nomination by account holders or depositors. Under this facility both the account holder / depositor and the bank will be in a convenient position. By paying the registered (in the records of the bank) nominee the nominee will receive the proceeds of the account/deposit without any necessity to produce succession certificate. The bank having paid the same to the nominee gets valid discharge from all other legal heirs and the bank can avoid disputes or adverse claims from any legal heir. The nominee is extended hand of legal heirs and is answerable to them. Therefore there is no need for nominating two persons. Sec.45ZA does not contemplate for two nominees. However there are incidents where nominees also die. In such cases the nominee's legal heirs cannot lay any claim. All the legal heirs have to apply for succession certificate from competent court to receive the amounts. Hence the account holder/depositor can nominate two persons with "either or survivor" clause by convincing the bank.
S Jadhav 98336 98330
(Expert) 29 May 2012
You can nominate only one person as per sec 45ZA of the Banking Regulation Act 1949.
The nominee is only a trustee of the amount and has to compulsorily distribute the amount to the legal heirs at the earliest when demanded. If there is ambiguity about the legal heirs and their shares, then the nominee can hold the amount in trust for them until it is sorted out.
Am reproducing the relevant parts of the section for your ready reference.
S Jadhav
45ZA. Nomination for payment of depositors' money.-
(1) Where a deposit is held by a banking company to the credit of one or more persons, the depositor or, as the case may be, all the depositors together, may nominate, in the prescribed manner, one person to whom in the event of the death of the sole depositor or the death of all the depositors, the amount of deposit may be returned by the banking company.
(2) Notwithstanding anything contained in any other law for the time being in force or in any disposition, whether testamentary or otherwise, in respect of such deposit, where a nomination made in the prescribed manner purports to confer on any person the right to receive the amount of deposit from the banking company, the nominee shall, on the death of the sole depositor or, as the case may be, on the death of all the depositors, become entitled to all the rights of the sole depositor or, as the case may be, of the depositors, in relation to such deposit to the exclusion of all other persons, unless the nomination is varied or cancelled in the prescribed manner.
(3) Where the nominee is a minor, it shall be lawful for the depositor making the nomination to appoint in the prescribed manner any person to receive the amount of deposit in the event of his death during the minority of the nominee.
(4) Payment by a banking company in accordance with the provisions of this section shall constitute a full discharge to the banking company of its liability in respect of the deposit: Provided that nothing contained in this sub- section shall effect the right or claim which any person may have against the person to whom any payment is made under this section.
