When you apply for Fixed Deposit, Insurance, Shares, or Mutual, or opening bank accounts you need to mention about 'Nominee". The column is generally left blank by many people but you should not leave the 'Nominee' blank. Let me share with you what is nominee in bank so that you can understand better.
What is nominee in bank account?
A nomination in the bank means the account holder's right to appoint one or more people who will receive the money if the account holder dies. The bank in this condition will transfer the funds to the nominee without a court order, succession certificate or letter of administration.
If you are wondering what is a nominee in bank account, you must remember a few points.
You need to add the name of the nominee when you open new savings or fixed deposit account.
The nomination facility is not available for representative accounts. It is available for single, joint or sole proprietor accounts.
To add a nominee you need to obtain a DA1 form.
You as the owner of the account can cancel a nomination by filling out the DA2 form. You change the nominee by filling out the DA 3 form.
You can make a minor a nominee but the information of the legal guardian of the minor is required. The legal guardian of the nominee will receive the amount on behalf of the minor until the minor is an adult.
You can only have one nominee for one account.
The nominee can receive the funds only after the death of the owner of the account.
A nominee is considered as a 'trustee' of the funds of the account holder.
Read more:
is there any pre closure charges for home loan?
How to check loan eligibility in SBI?
Is There Any Choice Of Making Someone A Nominee While Buying A Property?
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Authors Of The Question
What is nominee in bank?
Arvind
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2 Year
2022-02-28T20:41:52+00:00 2022-02-28T20:41:54+00:00Comment
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