Bank Account Nominee: There is big news for account holders having accounts in banks. The winter session of Parliament has started from today and after the uproar in Parliament on the very first day over the Adani bribery controversy, it has been adjourned till 12 noon. In this session, the government will try to pass the Banking Amendment Bill to bring many changes in the banking sector in the country.
New rules for nominee for account holders soon
Now soon new rules are going to come for account holders in the bank regarding nominee of their account. This will happen after the Banking Amendment Bill is passed in the Parliament. The government will try to pass the Banking Amendment Bill in the Parliament which is currently pending in the Lok Sabha. Earlier in August 2024, the Union Cabinet had passed the Banking Bill.
Finance Minister Nirmala Sitharaman will try to pass the Banking Amendment Bill during the winter session of Parliament. The major changes that are to take place in this are also important for bank accounts. Under the Banking Laws Amendment Bill 2024, there will be a proposal to increase the number of nominees for bank accounts to four. When the Banking Amendment Bill will be passed on the table of Lok Sabha in the Parliament, then it will become mandatory for everyone to make 4 nominations in their bank account. Under this bill, there is a proposal to increase the limit of nominees on each bank account to four, which is currently one.
Know the special features of this bill
Either the bank account holder will have to rank the nominees based on their priority or they can decide the share of each nominee as per banking rules. If the account holder chooses the nominee option then he will have to decide the name of the first, second, third and fourth nominee. After the death of the account holder, his four nominees will get the rights to the account in a sequential manner. The next living nominee after the first, second or third nominee will get the right to the account.
By dividing the shares of the four nominees, each nominee can be given a certain portion of the account amount. There will be no need for priority in this and every nominee will get the fixed share of the account amount, interest etc.
Many laws have been amended in the Banking Bill passed by the Union Cabinet in August 2024, these include-
Reserve Bank of India Act, 1934
Banking Regulation Act, 1949
State Bank of India Act, 1955
Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970 and 1980
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