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Time of India

RBI pitches for email, phone numbers in bank A/c nomination

Reserve Bank of India wants to safeguard depositors' interests. It has asked banks for suggestions. The suggestions are about adding nominee contact details to bank forms. This includes email and phone numbers. The move aims to reduce unclaimed deposits. A new banking bill allows up to four nominees. The government will also give its view. Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads New Delhi: To further safeguard depositors' interests, the Reserve Bank of India has sought suggestions from banks on adding nominees' email and phone numbers to existing bank nomination forms. With the passage of the Banking Laws (Amendment) Bill, 2024, bank account holders can now have up to four 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, said two executives aware of the developments."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," said one of the executives, adding that the current nomination format for deposits, safe deposit lockers, and safe custody articles lack fields for the nominee's mobile number and e-mail ID."The government has also recently amended the Banking Bill, and by updating the nomination form with contact details of nominees, it will further ensure that all such listed persons are informed and are able to claim their due," the above-quoted executive 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 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 bank executive said that there may be consent issues in capturing details of nominees. "What if the nominee is not comfortable with sharing details and can bank without consent reach out to them?" he asked, adding that this may require more deliberations, including changes in the know your customer (KYC) lying in bank accounts that have not been operated for 10 or more years are transferred to the RBI 's Depositor Education and Awareness (DEA) Fund.