RBI Suggests Including Contact Information on Bank Nomination Forms
The Reserve Bank of India (RBI) has recommended modifying the nomination process in bank accounts by including the email address and phone number of nominees in the nomination forms. The move will facilitate efficiency and transparency in the claim process, especially in case of the death of the account holder.
The recent passage of the Banking Laws (Amendment) Bill, 2024, has enabled account holders to name a maximum of four nominees for their bank accounts. Taking this forward, RBI is now in the process of considering entering contact numbers as well to make the process even simpler.
The RBI has already approached banks with a proposal to include the email ID and phone number of nominees in the nomination forms. The idea is part of an initiative to modernize the Banking Companies (Nomination) Rules, 1985, to make them compatible with the communication modes used today.
Adding contact information is likely to:
- Allow Communication: Enable banks to communicate immediately with nominees to inform them of claim procedures and supporting documents.
- Minimise Unclaimed Deposits: Increase identification and tracking of rightful holders, hence the amount of unclaimed deposits decreases.
- Transparency: Give complete and direct communications between nominees and banks to reduce possible disagreements.
The RBI has sought feedback from banks on this proposal. Once the feedback is reviewed and finalized, the updated nomination forms will be introduced. The timeline for this implementation will depend on the regulatory processes and the incorporation of feedback from all stakeholders.
The proposed inclusion of nominees’ details on bank account nomination forms is a turning point in the initiative to modernize the banking industry. By enhancing communication and transparency, the RBI aims to enable the rightful claimants to obtain the funds without unnecessary delays, thereby protecting the interests of the depositors and their beneficiaries.
