RBI looking to include email, phone numbers of nominees in bank account

Banking Laws (Amendment) Bill, 2024, allows bank account holders to have up to four nominees.

STC NEWS DESK
NEW DELHI, MAY 17 (STC): The Reserve Bank of India (RBI) has sought suggestions from banks on adding nominees’ email and phone numbers to existing bank nomination forms.
According to the reports, the suggestions were sought last month, and a view from the government will also be taken, as this will require updating the format for nomination forms prescribed under the Banking Cos. (Nomination) Rules, 1985.
“The idea is to bring down the unclaimed deposits in the financial sector, especially banks. This may help in tracking claimants or their nominees in case of address change or contact details of the account holder,” reads the report quoting an official. Currently nomination format for deposits, safe deposit lockers, and safe custody articles lack fields for the nominee’s mobile number and e-mail ID.
It’s pertinent to mention that the government has also recently amended the Banking Bill, and by updating the nomination form with contact details of nominees, is expected to further ensure that all such listed persons are informed and are able to claim their due.
In March, the Banking Laws (Amendment) Bill 2024 was passed by the parliament that amended sections 45ZA, 45ZC, and 45ZE of the Banking Regulation Act to allow for up to four nominees and includes provisions for simultaneous and successive nominations, offering greater flexibility and convenience for depositors and their legal heirs, especially concerning deposits, articles in safe custody, and safety lockers.
Notably, Banking Companies (Nomination) Rules 1985 permits banks to pay dues to nominees in the event of the death of depositor(s) without asking for a succession certificate or verifying claims of legal heirs.
(STC)