New Delhi: The Banking Laws (Amendment) Bill, 2024, introduced by Finance minister Nirmala Sitharaman in Parliament aims to make key changes to banking with respect to nominations as well as locker rules. One of the key features of the amendment is the option to appoint 4 nominees for bank deposits or accounts. The amendment bill also proposes to change bank locker rules.
4 bank account nominees
Once the bill is passed and enacted by the Parliament, bank deposit holders and bank account holders will have the option to nominate 4 individuals. The multiple simultaneous nominations will be made on a percentage-based allocation basis, according to an ET report. The Bill also provides for successive nomination, which implies that the first of the four nominees will given preference.
Bank locker facility proposed rule change
The nomination rule change proposed by the new bill is also likely to apply to bank lockers. While currently, locker rules allow just one nominee for a single account, a joint account allows for the naming of 2 nominees. In a more complex rule, the contents of a bank locker are not immediately transferred to the nominee in the event of the death of the single or joint account holders.
This is owing to the survivorship clause, which must be ticked while subscribing to bank locker services. A nominal annual fee is charged by the bank for locker services charged to the hirer at the start of every financial year. Last year, the Reserve Bank of India directed lenders to sign an updated agreement with locker holders.
The new form realigned the bank locker provider and hirer relationship to that of lessor and lessee and tightened rules for what can and cannot be stored in a locker. Banks have been empowered to inspect the contents of a locker for storage of suspected illegal goods.
Bank locker rules: Nominee rules for bank deposits, accounts and lockers are expected to undergo changes once the new Banking Laws (Amendment) Bill, 2024, is passed in Parliament. Personal Finance Business News – Personal Finance News, Share Market News, BSE/NSE News, Stock Exchange News Today
