The Hindu Business Line : RBI directive on nomination facility

Mumbai, March 10 The Reserve Bank of India, as part of its endeavour to ensure further improvement in the quality of customer service in banks and their branches, has advised banks that they should indicate the name of the nominee in pass books / statement of accounts / fixed deposit receipts if the customer is agreeable to the same.

Emphasising that banks are required to acknowledge in writing to depositors / locker hirers the filing of the relevant duly completed form of nomination, cancellation and / or variation of the nomination, the RBI said, “banks are advised that in addition to the acknowledgment of nomination, they should also indicate the name of the nominee in the pass book / statement of accounts / fixed deposit receipts, in case the customer is agreeable to the same.”

The RBI has already advised banks to introduce the practice of indicating on the face of passbooks/FDRs whether nomination facility has been availed by the customer with the legend ‘Nomination Registered’.

The central bank pointed out that it has been brought to its notice that some banks were not having the system of acknowledging the receipt of the duly completed form of nomination, cancellation and /or variation of the nomination. Further, in some banks, although there is a system of acknowledgement of nomination as provided in the Savings Bank Account opening form, such acknowledgements are actually not given to the customers.

Under the Banking Companies Nomination (Rules), 1985, banks are required to acknowledge in writing to the depositors / locker hirers the filing of the relevant duly completed form of nomination, cancellation and / or variation of the nomination. Such acknowledgement should be given to all the customers irrespective of whether the same is demanded by the customers.

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