Nominee/spouse
s venkata ramana
(Querist) 30 January 2014
This query is : Resolved
Hi sir ,
is it possible to write the name of some friend in place of Nominee/Spouse while filling bank account details. if so....
Q) Can the money in the account of the applicant transfer to the Nominee (i.e Friend ) while the applicant is having his family members who are alive.
Reason for asking this Question .
While filling the bank application most of applicant did not know the importance of Nominee/Spouse .
Kumar Doab
(Expert) 30 January 2014
An individual can nominate any one, can nominate more than one person or as many..............
Nomination does not supersede succession and thus right of legal heirs.
Nominee is only just the hand to receive the proceeds and pass these to legal heir.
It is not sensible to nominate a friend in bank a/c when all legal heir are alive and deserving and create hassles for deserving legal heir.
Only in case of some compelling issues such matters may be thought of.
Advocate M.Bhadra
(Expert) 30 January 2014
Nominees other than relatives in bank account does not have succession rights.
The Apex Court has clarified the nominee of a depositor in a bank does not have ownership of the money in the account after death of the depositor. The nominee gets exclusive right to receive the money lying in the account. It gives him all the right of the depositor as far as the depositor's account is concerned. According to Section 45ZA of the Banking Regulation Act. But the banking law is not concerned with the Succession Act. The money in the account will form part of the estate of the deceased depositor and devolve according to the rules of succession. In this case, Ram Chander vs Devender Kumar, it was establish.
It is also RBI guide line Ref;RBI/2005-06/48
RPCD.CO.RF. BC.No.12/07.38.01/2005-06
2.2 It may be noted that since payment made to the survivor(s) / nominee, subject to the foregoing conditions, would constitute a full discharge of the bank's liability, insistence on production of legal representation is superfluous and unwarranted and only serves to cause entirely avoidable inconvenience to the survivor(s) / nominee and would, therefore, invite serious supervisory disapproval. In such case, therefore, while making payment to the survivor(s) / nominee of the deceased depositor, the banks are advised to desist from insisting on production of succession certificate, letter of administration or probate, etc., or obtain any bond of indemnity or surety from the survivor(s)/nominee, irrespective of the amount standing to the credit of the deceased account holder.
Rajendra K Goyal
(Expert) 31 January 2014
Nominee is the trustee of the assets, he is not the owner.
Guest
(Expert) 31 January 2014
Academic question!
As an HR Assistant, how you are concerned with most of the applicants, who do not know the importance of Nominee/Spouse, and how you propose to educate the so called most of the applicants to enable them to know the importance or difference of nominee and spuse (legal heir)?
Better ask quetions related to your own problem, if you really have any. You should not expect the experts to hold tutorial classes on legal terms.
Dr J C Vashista
(Expert) 01 February 2014
Ask the question from yourself and answer is No.
T. Kalaiselvan, Advocate
(Expert) 02 February 2014
