29 October 2024
Is the following rule of Union Bank of India in contravention of RBI rules "There can be only one Nominee for a deposit account whether held singly or jointly." See - https://www.unionbankofindia.co.in/english/nomination-facility.aspx
29 October 2024
Yes, that was old rule. The new rule is in pipeline. Key Provisions of the Banking Laws (Amendment) Bill, 2024 The Banking Laws (Amendment) Bill, 2024, proposes to overhaul this framework by allowing deposit holders to appoint up to four nominees for their bank accounts and lockers. This change is expected to provide greater flexibility and security to depositors, enabling them to ensure a more equitable distribution of their assets. Increased Number of Nominees: The Bill proposes that depositors can now appoint up to four nominees for their accounts and lockers. This can be done either successively or concurrently for deposits, whereas for other assets, nominees can only be appointed sequentially. This change is designed to accommodate the needs of depositors who wish to designate multiple beneficiaries. Proportional Nomination: For accounts with multiple nominees, the nomination will be effective in a predetermined proportion. This ensures that each nominee receives a specified share of the assets, which can prevent disputes and ensure that the depositor's wishes are respected. Refer: https://www.msn.com/en-in/money/news/bill-to-provide-up-to-four-nominees-to-a-bank-account-introduced-in-ls/ar-AA1ovBwI
29 October 2024
Probably no, not sure. The Banking Laws (Amendment) Bill, 2024 was introduced in Lok Sabha on August 9, 2024. It amends the: (i) Reserve Bank of India (RBI) Act, 1934, (ii) Banking Regulation Act, 1949, (iii) State Bank of India Act, 1955, (iv) Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970, and (v) Banking Companies (Acquisition and Transfer of Undertakings) Act, 1980.
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