Bank Counter Fees 2024: SBI vs HDFC Bank vs ICICI Bank vs Canara Bank vs PNB
Currently, the Banking Regulation Act allows individual or joint deposit holders designate a candidate for safekeeping. A testator may also be designated for the safekeeping of objects left in a bank or for a rented locker in a bank. The testator may have access to the deposit, the objects or the locker in the event of the death of the person who nominated him.
What does the new bill propose?
According to press reports, the bill proposes the nomination of up to four candidates. In the case of deposits, such candidates may be nominated successively or concurrently, although for other purposes, they may be nominated sequentially. In the case of multiple candidates, the nomination will be effective in a predetermined proportion. For subsequent nominations, priority will be given to the candidate identified highest in the order of nomination.
“The Banking Regulation Act allows individual or joint deposit holders to nominate a nominee for their deposit. Such nominee may also be appointed for items left in safekeeping at a bank or for a locker rented at a bank. The nominee can access the deposit, items or locker in case of death of the person who nominated him. The Bill allows appointment of up to four nominees for these purposes. For deposits, such nominees may be appointed successively or simultaneously, while for other purposes they may be appointed successively. In case of simultaneous nominees, the nomination will be effective in a declared proportion. For successive nomination, the nominee who has been appointed higher in the order of nomination will be given priority,” according to the Banking Laws (Amendment) Bill, 2024.
Why is a nomination required for locker and savings accounts?
According to the Indian Banks Association (IBA) website, “Banking Companies (Nomination) Rules 1985” allows banks to pay dues to nominees on the death of the depositor(s) without asking for a certificate of succession or checking the claims of the legal heirs. This simplifies the winding up. Of course, as trustee, the nominee is liable to the legal heirs.
- Nomination facility available for bank deposits, safety deposit boxes, safe custody items.
- There can only be one nominee for a deposit account, whether individual or joint.
- There can be two candidates for a shared locker.
- “A person legally authorized to operate a minor’s account may submit a nomination on behalf of the minor.”
According to the SBI Bank website, “It is always beneficial to avail the benefits of nomination facility/survival clause offered to locker tenants. The main advantage of availing these facilities is that in case of unfortunate demise of one of the joint locker tenants, the right to the contents of the locker does not automatically vest in the surviving joint tenant/nominee(s), unless there is a survival/nomination clause.”
The bank will charge a nominal annual rent, which depends on the size of the locker and the center in which the branch is located. The rent must be paid in advance for the fiscal year. A copy of the locker agreement signed by both parties will be provided to the locker renter so that he/she is aware of his/her rights and responsibilities.
How to add or change a nominee to your locker in HDFC Bank
You will need to add nominees to your bank locker, just as you would with any other financial tool or service. Here’s how, according to the bank’s website, a person who has a locker on HDFC Bank You can add or modify a candidate.
Individuals can opt for a nomination facility for a safety deposit box at HDFC Bank. Up to two nominees can be selected for safety deposit boxes in the names of both parties. Safety deposit box owners can give mandates for access to the safety deposit boxes in the same manner as deposit account holders.
How to add or change a nominee in HDFC Bank Safe Deposit Box
To change or add the nomination, one can download the forms or visit the branch, complete the required application and send it to their mailbox only.
- To add a nomination: Form SL1 (sole contractor)/SL1A (joint contractor)
- To cancel a nomination: Form SL2
- To change a nomination: Form SL3 (sole contractor)/SL3A (joint contractor).
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