BY SHAWNAWAS S.

NANDA KUMAR

NOMINATION
Why Nomination?
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 not accountable to legal heirs. Nominee: He / She is a person appointed by account holder(s) who have legal rights to take over the rights of the account.
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NOMINATION
Who can be a nominee? Nominee can be any one, appointed by the depositor(s). Its not necessary that to be the legal heir or relative. In case of minor as nominee it has to be accompanied by a guardian.

NOMINATION
Procedure to apply Nomination Account holder(s) can appoint a nominee by filling a Nomination form as prescribed by the RBI guidelines. It can be done while opening or at any time during life time of account holder(s). In case of minor, proof of birth of the nominee has to be submitted along with the legal guardian. Nomination can be cancelled or changed at any time.
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NOMINATION
Procedure to claim nomination
Nominee can claim only after the death of account holder. Documents to be produced: Death certificate of the account holder. ID proof of the nominee/ guardian in case of minor nominee. Upon verification bank will handover the deposit.

NOMINATION
Nomination in Different type of accounts:

Savings account (Individual and Joint) Current account Term deposits Safe Lockers and Safe custody

POINTS OF COMPARISON

DEPOSIT A/C

SAFE CUSTODY

SAFE DEPOSIT LOCKER

ENABLING SECTION ALLOWED IN JOINT A/C OR NOT MAXIMUM NUMBER OF NOMINEES IN JOINT A/S FORM OF NOMINATION CAN A MINOR BE NOMINEE CAN A NON RESIDENT BE NOMINEE DEATH OF ONE OF THE JOINT HOLDERS

45ZA,45ZB ALLOWED ONE DA-1 YES YES NOMINEE DOES NOT COME INTO PICTURE

45ZC,45ZD NO 1 SC-1 YES YES NOT APPLICABLE

45ZE,45ZF ALLOWED 1 IN ALL CASES 2 IN JOINTLY OPEARTED SL-1 & SL-1A YES YES ALL NOMINEES ALONG WITH SURVIVORS TO TAKE DELIVERY OF GOODS SL-2 SL-3,SL3A

FORM OF CANCELLATION FORM OF VARIATION

DA-2 DA-3

SC-2 SC-3

NOMINATION
In case of Joint account (deposits, safe lockers and
partnership account) all account holders have to sign in the nomination form. Any changes in nomination should be done with the consent of all account holders. If a account holder doesnt want to nominate, letter has to be submitted stating that Nomination not required or Consent officer has to mention the remarks. In case nomination is not done, legal heir(s) has right to claim the deposits.
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NOMINATION
Exceptions to Nomination facility Firms account Self help groups account Private and public limited account

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Utility bills
Facility that allows a customer to pay electricity, telephone, mobile bills, Insurance premiums and other utility bills through bank. Bank has tie up with a host of electricity, telephone, mobile phone, insurance companies to pay bills.

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Utility bills
ADVANTAGE FOR BANKS Main objective of banks to offer service is to customer retention and to provide better customer service. Commission based earning for banks with less human intervention. Banks can also get float funds for direct bill payments. ADVANTAGE FOR CUSTOMERS Easy mode of payment. Time consuming. Timely payment.

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Utility bills
Work flow of utility bill payment

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Utility bills
Bill payment through Online Banking Have to open Net Banking facility. Customer has to choose the utilities to which bill has to be pay. Details of that has to be updated. For e.g., EB number, telephone number etc. Customer can enable Auto pay so that system by itself pays bill on the date mentioned by customer.

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Utility bills
Other payments method IMPS: Mobile banking can be used to pay the bills which is availed upon registration. ATM: Bills can be paid through using debit card, however it can be done only in the bank atm in which customer holds the account. Walk-In: Customers can also pay bills by walking in to their respective branches to pay bill.

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