PPT

ON
FACILITY ON BANK
NOMINATION
Roll no 28

BANKS ASK THEIR ACCOUNT HOLDERS TO MAKE NOMINATIONS WHICH

MEAN THAT THEY SHOULD NOMINATE PERSONS TO WHOM THE MONEY
LYING IN THEIR ACCOUNTS SHOULD GO IN THE EVENT OF THEIR DEATH
. NOMINATION CAN BE MADE IN ACCOUNT OPENING FORM ITSELF OR ON
A SEPARATE FORM INDICATING THE NAME AND ADDRESS OF THE
NOMINEE. THE ACCOUNT HOLDERS CAN CHANGE THE NOMINATION ANY
TIME
NOMINATION IS A FACILITY THAT ENABLES A DEPOSIT ACCOUNT
HOLDER(S) (INDIVIDUAL OR SOLE PROPRIETOR) OR SAFE DEPOSIT
LOCKER HOLDER(S) TO NOMINATE AN INDIVIDUAL, WHO CAN CLAIM THE
PROCEEDS OF THE DEPOSIT ACCOUNT(S) OR CONTENTS OF THE SAFE
DEPOSIT LOCKER(S), POST THE DEMISE OF THE ORIGINAL DEPOSITOR(S)
OR

LOCKER

HOLDER(S).

NOMINEE
DEFINITION of 'Nominee'

A person or firm into whose name securities or other properties are

transferred in order to facilitate transactions, while leaving the customer as

the actual owner

'Nominee'
A "nominee account" is a type of account in which a stockbroker holds
shares belonging to clients, making buying and selling those shares easier.
In such an arrangement share

WHO CAN NOMINATE?

1.

Bank account holders having deposit accounts in their individual names or, in joint
names of two or more individuals.

2.

A person lawfully entitled to act on behalf of the minor in respect of a deposit account.

3.

A sole proprietor can appoint a nominee to the sole proprietorship account with the bank.

4.

In the case of a deposit account in the name of a minor, nomination shall be made by a
person lawfully entitled to act on behalf of the minor in respect of a deposit account.

5.

Safe deposit locker holder(s) can appoint nominee(s) on their Safe deposit locker(s).

6.

A nomination can be made only in respect of a deposit account which is held in the
individual capacity of the depositor, and not in any representative capacity such as the
holder of an office like Director of a Company, Secretary of an Association, partner of a firm, or
Karta of an HUF.

HOW TO NOMINATE

Specific forms are provided for availing of nomination facility. The

account holder/customer will have to fill in the relevant form. The
bank will acknowledge in writing to the concerned account
holder/customer, the receipt of the nomination form and the
nomination will be registered in the books of the bank .

Cancellation of, Variation in, Nomination

Cancellation of, or variation in, the nomination can be made at any

time as long as the account is in force. While making nomination,
cancellation or variation, witness is required and the request should
be signed by all account holders.

WHEN THE NOMINEE MAKE CLAIM

order to ensure that the deposits/articles, are handed over to the
genuine
nominee,
the
bank
will
insist
on
Proof
of
death
of
depositor:
A death certificate or any other satisfactory mode of proof of death
acceptable to the bank, will have to be furnished.
Identity
of
the
nominee:
A claim format establishing the claim of the nominee duly certified
by
a Magistrate or Judicial Official or
an Officer of the Central or State Government or
an Officer of a bank or
two persons acceptable to the bank who will act reference.
Customers (new as well as existing) are advised to avail nomination
facility, if they have not availed so far.
kes a Claim

WHAT IS THE BENEFIT OF

NOMINATION

The benefit of nomination is that in the event of death of an

account holder(s) or locker holder(s), the Bank can release the
account proceeds or contents of the locker to the nominee(s)
without insisting upon a Succession Certificate, Letter of
Administration or Court Order. The nominee holds the monies
in the capacity of a Trustee on behalf of the legal heirs of the
deceased account holder(s) or locker holder(s) and the Bank's
liability is duly discharged on payment to the Nominee.

How

can

register

nomination?

Specific nomination forms need to be completed and

submitted to the Bank for registering the nomination facility.
Different forms are applicable to register nominations on
deposit accounts and safe deposit lockers. The Bank will
acknowledge receipt of the nomination form and send a
confirmation of having recorded the same. This confirmation
must be kept securely either with the deposit account holder
or with the nominee, if the account holder so wishes.

HOW CAN I GET A NOMINATION

FORM

Deposit

Account:

Please

click here to download the nomination form

from

www.hsbc.co.in.
You can also avail of a nomination form from the nearest branch of The Hong
Kong

and

Shanghai

Banking

Corporation

Limited,

(HSBC).

Please

click here for the details of our branches. The completed form can be posted or
personally handed over to the Bank, in any of our HSBC branches. NRI customers
can also send the forms signed and witnessed (in original) to the mailing address of
the

NRI

Centre

in

your

country

of

residence

given here.

Safe Deposit Locker: Nomination forms for safe deposit lockers are available at
any of our branches that offer safe deposit locker facilities to customers. The
specific

branches

are

mentioned

click here for the full address of the branch nearest to you

below.

Please

WHY NOMINATION

1.

Banking Companies (Nomination) Rules 1985 permits banks to pay dues to

nominees in the event of death of depositor(s) without asking for succession
certificate or verifying claims of legal heirs. This simplifies settlement. Of course, as
Trustee the nominee is accountable to legal heirs.

2.

Nomination facility available for bank deposits, safe deposit lockers, safe custody
articles.

3.

There can be only one Nominee for a deposit account whether held singly or jointly.

4.

There can be two nominees for a jointly held locker.

5.

A person legally empowered to operate a minor's account can file a nomination on

behalf

of

For more details approach your bank .

the

minor.

NOMINATION FACILITIES
I.

In Deposit Accounts

II.

PNB offers nomination facility in deposit accounts, locker facility, safe custody etc.
In an unfortunate event of the death of a depositor , nomination enables the bank to :

III.

make payment to the nominee of a deceased depositor, of the amount standing to the
credit of the depositor,

IV.

return to the nominee, the articles left by a deceased person in the bank's safe
custody,

V.

release to the nominee of the hirer, the contents of a safety locker, in the event of the
death of the hirer.

VI.

Without insistence on a succession certificate or probate of the will from the legal
heirs of the deceased account holder/customer.

SALIENT FEATURES OF THE NOMINATION FACILITY

1)

Nomination facility is available to account holders operating Current Accounts, Savings

Bank Accounts, and all types of term deposit accounts.

2)

Nomination can be made in favour of one person only.

3)

Nomination favouring the minor is permitted on the condition that the account holder, while
making the nomination, appoints another individual not being a minor, to receive the amount
of the deposit on behalf of the nominee in the event of the death of the depositor during the
minority of the nominee.

4)

Nomination can be made only in respect of a deposit which is held in the individual capacity
of the depositor and not in any representative capacity such as the holder of an office like
Director of a Company, Secretary of an Association, partner of a firm, Karta of an HUF. and
the like.

5)

In the case of a deposit made in the name of a minor, nomination shall be made by a person
lawfully entitled to act on behalf of the minor.

6)

A nomination will continue to be in force even on renewal of a term deposit, unless

specifically cancelled or changed