New Delhi: The Banking Laws (Amendment) Bill 2024, proposing multiple nominees for bank fixed deposits, is likely to be tabled in the Parliament’s Winter Session which commences from today. Notably, the bill was introduced in the Monsoon Session earlier this month, but it couldn’t be taken up for discussion.
Read More: Krishak Bandhu Yojana 2024: Financial Aid Details & Online Status Check
The Banking Laws (Amendment) bill will allow depositors to have multiple nominees on his/her bank fixed deposits (FD). It will help facilitate distribution of funds in case of death of a prime earner.
The proposed amendment would allow the FD account holder to add up to four nominees which was just one earlier, the nominees could be either simultaneous or successive. Under the simultaneous nomination, the percentage shares of the nominees are stated in the nomination form, while on successive nominations, one actual nominee should be there, and another nominee becomes effective after the death of the first nominee.
Read More: Free Update Of Aadhaar Ends Soon, Here’s How To Change Details Online
What is successive nomination?
The successive nomination allows a depositor to appoint four nominees in a specific order of priority. The successive nomination is beneficial in the sense that the nominee can claim the entire amount in death or in certain conditions where the depositor is unable to claim the amount.
What is simultaneous nomination?
Under simultaneous nomination, the depositor has to name four nominees and the percentage of share they can claim. If you want to put your children, spouse, mother as nominee, it is required to mention the percentage of share they can claim following your demise or in conditions where the depositor could not be able to claim the amount.
The flaws in the simultaneous nomination process is the complex nature of the nominations and can complicate the claim process for nominees and banks. Also, the simultaneous nomination is likely not to reduce the number of unclaimed deposits.
