Nomination: A Must Have in Your Accounts

Imagine the peace of mind that comes from knowing your loved ones are always taken care of. If you’re the one handling all the financial matters and keeping track of family accounts, it’s important to consider what will happen when you’re not around. Without your guidance, your family might struggle to understand how things work and what needs attention. But don’t worry, there’s a simple solution to ensure your family’s ease and security and that is NOMINATION.

Now, what do we mean by Nomination?

Nomination means choosing an individual who will act as a guardian for your funds/articles, when you are not around. As per the prevailing laws of our country, this person, called the nominee, serves only as a caretaker of the funds/articles and is obligated to pass them on to the legal heir, who holds the entitlement to the funds/articles.

Why one should consider NOMINATION?

Think of it as setting up a guiding lamp for your family. If something happens to you, they won’t be left in the dark. It’s a gesture of care, ensuring things run smoothly for them even in tough times. By assigning a nominee, you significantly reduce the hassles your loved ones may face with official formalities while accessing the accounts. Nomination is a simple step that can make a world of difference.

Let’s see which accounts can have a nominee?

Nomination can be availed for all types of deposit accounts, including Savings Accounts, Current Accounts, Term Deposit Accounts, and Safe Deposit Locker Accounts. In fact, this facility is available for all deposit accounts opened by individuals. It is also available to a sole proprietor concern account and joint deposit accounts.

Now that we’ve covered which accounts can have a nominee, the question naturally arises: Who can be a Nominee?

Essentially, it’s someone you trust implicitly to handle things for your family in your absence. This could be a legal heir, a family member/relative, a dear friend, or someone reliable. According to RBI guidelines, a nominee must be an individual and not an Association, Trust, Society, Organization, or any office-bearer in an official capacity.

• Can a minor be a nominee of your account? Yes, as per RBI, a minor can also be a nominee; however, where the nominee is minor, the depositor may, while making the nomination, appoint another individual not being a minor, to receive the amount of the deposit on behalf of the nominee in the event of the death of the depositor during the minority of the nominee.
• Can a Joint account also have a nominee? Yes, as per RBI, nomination facility is available for joint deposit accounts also, however, there cannot be more than one nominee in this case.

How to add your Nominee?

Adding a nominee is easy. You can do it while opening an account or later at any stage through internet banking, mobile banking app, or by visiting the nearest Indian Bank branch. Ensure your accounts are KYC compliant when proceeding digitally. Nomination can be added to both existing and new accounts and can be cancelled or modified by the depositors at any time, as per requirement.

Going Beyond Nomination

Besides nominating someone, there are other steps you can take to ensure your family’s financial well-being in your absence. One should always start with organizing and documenting their financial information. Create a comprehensive list of your accounts, investments, insurance policies, debts, and any other financial obligations. Keep this list updated and easily accessible to your family. Moreover, it’s essential to educate your family members about financial matters. This will eventually help them navigate financial troughs whenever faced.

By combining nomination with these proactive measures, you can create a robust and secure financial environment for your family, ensuring their financial stability and security.

Indian Bank. “Your Own Bank, Always with You”

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