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 Ad. 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 the account holders in the bank regarding the nominee of their account. This will happen after the Banking Amendment Bill is passed in Parliament. The government will try to pass the Banking Amendment Bill in 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 in the winter session of Parliament. The major changes made 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. After the Banking Amendment Bill is passed in the Parliament, it will become mandatory for everyone to make 4 nominees 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 decide the nominee sequentially based on his preference or he can decide the share of each nominee as per the 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, he will inherit the account sequentially from among his four nominees. The next surviving nominee after the first, second or third nominee will inherit the account.
By dividing the shares of all four nominees, each nominee can be given a fixed share of the account amount. There will be no need for priority and each nominee will get a fixed share of the account amount, interest etc.
The Banking Bill, passed by the Union Cabinet in August 2024, amends several laws, including-
Reserve Bank of India Act, 1934
Banking Regulation Act, 1949
State Bank of India Act, 1955
Banking Comp.es (Acquisition and Transfer of Undertakings) Act, 1970 and 1980
