RBI Proposal to Add Nominee Email and Phone Numbers in Bank Nomination Forms

• Objective:
  • To enhance protection for depositors by reducing unclaimed deposits in banks.
  • Adding nominee contact details (email and phone number) helps track and communicate with nominees in case of address or contact changes.
• Context:
  • The RBI sought suggestions from banks in April 2025 on updating nomination forms to include nominee email and mobile numbers.
  • This requires amending the nomination form format under the Banking Companies (Nomination) Rules, 1985.
  • The government’s view is being sought to finalize the changes.
• Legal Backdrop:
  • The Banking Laws (Amendment) Bill, 2024 allows up to four nominees per bank account.
  • It amends sections 45ZA, 45ZC, and 45ZE of the Banking Regulation Act, enabling simultaneous and successive nominations, improving flexibility and ease for depositors and heirs.
• Current Practice:
  • Existing nomination forms for deposits, lockers, and safe custody articles lack fields for nominee contact info.
  • Under existing rules, banks can pay dues to nominees without requiring succession certificates or legal heir verification.
• Additional Info:
  • Deposits dormant for 10+ years are transferred to RBI’s Depositor Education and Awareness (DEA) Fund.

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