FOUR NOMINEES FOR BANK ACCOUNTS A RADICAL MOVE

THE Banking Laws (Amendment) Bill, 2024, tabled in Parliament last week, has several provisions offering flexibility and uniformity to banks for carrying out their day-to-day operations.

- 

Perhaps the most pathbreaking among them is the one which allows bank account holders to have up to four nominees. These nominees could be either successive or simultaneous. Successive nomination means having multiple nominees in a particular order. If the first nominee is not available for claiming the funds, then the second nominee will be called. Simultaneous nomination means multiple nominations with deposits divided into pre-defined proportions. In case of the simultaneous nominees, the account holder must explicitly mention the proportion of deposits in percentage in favour of each nominee. The nominations must be made for the whole amount. In case of de