Awareness Fridays: Your Bank Should Now Acknowledge Nomination and Indicate the Name of the Nominee in Pass Books and Fixed Deposit Receipts

by Vinaya HS on March 13, 2009

in Finance

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Key excerpts from a recent circular issued by the Reserve Bank of India.

The problem.

It has been brought to our notice that some banks do not have the system of acknowledging the receipt of the duly completed form of nomination, cancellation and/or variation of the nomination. Further, it is also understood that in some banks, although there is a system of acknowledgment of nomination as provided in the Savings Bank account opening form, such acknowledgments are actually not given to the customers.

The mandate.

1. In this connection, banks are aware that in terms of Rules 2 (9), 3 (8) and 4 (9) of the Banking Companies Nomination (Rules), 1985, they are required to acknowledge in writing to the depositor(s)/locker hirer(s) the filing of the relevant duly completed form of nomination, cancellation and/or variation of the nomination.

2. Banks are therefore advised to strictly comply with the provisions of Banking Regulation Act, 1949 and Banking Companies (Nomination) Rules, 1985 and devise a proper system of acknowledging the receipt of the duly completed form of nomination, cancellation and/or variation of the nomination. Such acknowledgment should be given to all the customers irrespective of whether the same is demanded by the customers.

3. A suggestion has been received that banks should indicate the name of the nominee in Pass Books/Fixed Deposit Receipts (FDRs). Since this would be helpful to the customers/nominees, banks are advised that in addition to the legend “Nomination Registered”, they should also indicate the name of the nominee in the Pass Books/Statement of Accounts/FDRs, in case the customer is agreeable to the same.

Call for action:

  • If you haven’t already availed of the nomination facility for your accounts and other deposits, today is probably the best time to get started on this task.
  • If you have already availed the nomination facility, check whether your accounts and deposits have recorded the details. If not, get it done immediately.

Awareness Fridays is my initiative to spread awareness on topics relevant to personal finance — every Friday. I urge you to take some time off and absorb this information — it’s pretty useful. And, as always, do spread the word if you find this useful.




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{ 3 comments… read them below or add one }

pardeep December 31, 2009 at 7:50 PM

Hi vinanya,

I had lodged complaint againt hdfc bank against wrongful dishonour of chq issued from my saving a/c and further lodged the complaint to the B.O on sep 2009 , but inspite of the confirmation from the bank that they had uploaded my wrong sign and thats why that had rejected two of my chq’s and confirm the same to me thru mail and approached me foor the reversal of my complaint , which i refused as I had faced lots of harrassment and mental agony and loss of reputation from all these and asked them to submitt their report to the B.O. and since called B.O. manya times , but today they after calling them for the status of my report the secretary shouted at me and asked me to not to call them again and now I had received reply from them that Complaint had been disposed and under Complaint settled: complainant advised of proposed closure11(1).

Please advise regarding the same as i haven’t received anything specific or I have to wait for anything like hardcopy from the said B.O. but am bit confused as I had lodged the same thru online only

Anil Madhav January 11, 2011 at 6:47 PM

Hello Pardeep,

I too got a similar email from Banking Ombudsman. I got no written communication from the BO office regarding my request for compensation. Please suggest me how you tackled the situation.

Thanking you,
Anil Madhav Sanapala
+91-9032605230.

Rajashekhara.patil May 15, 2012 at 2:44 PM

Sir, At the out most of My introduction my namae is rajashekhara Patil resident of Hubli I had a Auto lone from axix bank Due to htere irregural service of ECS they have updated this has a late payment in CIBIL , there is no single ECS have hit my account i have mantaintned sufficent balance in my HDFC Bank account when i have approched for RBI with the complaint number 2011120020​02760 i got a reply from tham say that Complaint settled: complainant advised of proposed closure11(1) kindly advise me on this matter
Regards,

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