RBI asks banks, NBFCs to obtain nomination for deposit accounts
This story was originally published at 15:04 IST on 17 January 2025
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MUMBAI – The Reserve Bank of India has asked banks and deposit-taking non-banking finance companies to strictly obtain nomination for all deposit accounts, safe custody articles, and safety lockers from existing and new customers, it said in a press release on Friday. The central bank observed that nomination was not available for many deposit accounts and hence, reiterated the need to avoid inconvenience and undue hardship to survivors or family members of deceased depositors.
The regulator also said that banks must sensitise their frontline staff at branches to obtain nominations as well as to handle claims of those deceased and deal with nominees or legal heirs. Bank should review the nomination coverage periodically and report to the central bank on a quarterly basis with effect from Mar. 31.
The RBI said banks could make changes to their application forms to open deposit accounts by providing an option for depositors to avail or opt out of nomination. End
Reported by Christina Titus
Edited by Avishek Dutta
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