What are the Fixed Deposits Nominee Rights?
Fixed deposits is the kind of long term deposits made by an individual in a particular bank for a particular time period, thereby, earning some amount of interest on it. It is generally made for the longer terms i.e. 1 year or more than that. Such time period is sufficient enough to portray any kind of contingency related to the death of the depositor. In such case, what would a bank do in order to remit the deposit money in the bank?
For this situation,
banks have a nomination facility as per the section 45ZA(2) of the Banking
regulation act, where in a person who is depositing his/her money in the bank
account is asked to refer any person’s name , whom he/she wants to authorize to
receive the claims in case of a sudden demise of the depositor.
For this purpose a separate form is filled bearing an individual’s
name (Nominee), with a signature of the depositor. This signed form will give
all the rights to that individual with regard to the nominee rights as per the
Banking regulation act.
Nominee is the person who is having legal rights on to the amount
deposited by the deceased in his/her bank accounts, FD’s, RD’s or any other
kind of investments. After the death of the depositor, nominee has to furnish
the following documents in order to receive the said claim and that are as
follows:
- ·
Death certificate of an
individual
- ·
Photo identity proof of self
After submitting the above documents, nominee is fully entitled to
receive the claims within the stipulated time period.
Now, let’s discuss the Nominee rights in case of Fixed Deposits:
Rights of Nominee in case of Fixed Deposits
- Ø Right to claim the amount of Fixed deposit
without any indemnity bond and succession certificate:
A nominee has the right to claim any amount
as a fixed deposit made by the deceased depositor without furnishing any
Succession certificate or any kind of indemnity bond to the bank. A bank should
not create any kind of inconvenience with regard to these certificates in order
to settle the claim. Mere a death certificate of the deceased depositor and an
identity proof of the self would do completely in terms of claim settlement.
- Ø Right to claim the amount of Fixed deposit in
case of any Rival claims added up:
RBI and banking regulations act has
authorized the nominee to receive the claims without any intervention. In case
some of the rival claims being added up, the amount of claim will be assigned
only to the nominee. Nomination form is filled with a purpose to avoid any such
confusions and interventions. A depositor can make any person whether related
to him or not, as his/her nominee and nobody can seize nominee rights.
- Ø Right to claim premature termination:
Nominee has an exclusive right to claim
premature termination of the fixed deposit in case of a death of the depositor.
This premature withdrawal or termination would be free of cost to the nominee,
without any penal charges.
- Ø Right to allow bank on the pipe flows of the
amount in the name of the deceased holder:
Nominee can allow or instruct the bank in
terms of the pipe flows of the amount in the name of the deceased account
holder and thereby, withdrawing the amount through the negotiable instruments,
wherein the instrument would be transferred in the name of the nominee.
- Ø Right to access to the lockers linked to the
Fixed deposit made by the deceased person:
Nominee has an exclusive right to access the
lockers that are linked to the fixed deposits made by the deceased individual
and can claim the things that are kept in the locker.
- Ø Right to get the settlement within 15 days
from the date of request of claim to the bank:
Nominee has a right to get the settlement within 15 days from the
request being made to the bank to settle the claims with respect to the FD
being made by the deceased depositor.
Therefore, these are the nominee rights with respect to the FD
amount settlement in case the depositor dies before withdrawing the amount.
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