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Nomination Rights Saving Bank Account

(Querist) 11 April 2011 This query is : Resolved 
My father had nominated me for his Bank Of Baroda saving account and died of heart attack, I have the original copy of the nomination form but now the bank is asking for my other three brother’s signatures and making my case more complicated and not transferring my fathers fund to my account. Is my brother’s signature required?
But Central Bank Of India has already given me a demand draft of 1,50,000.00 /- with out any problem. The amount in Bank Of Baroda is 9,50,000.00

The below rules I got from the internet but could not under the details.

Nominee of bank account does not get succession rights
The Supreme Court (SC) has clarified the nominee of a depositor in a bank does not get ownership of the money in the account after death of the depositor. The nominee gets exclusive right to receive the money lying in the account. It gives him all the right of the depositor as far as the depositor's account is concerned, according to Section 45ZA of the Banking Regulation Act. But the banking law is not concerned with the succession. The money in the account will form part of the estate of the deceased depositor and devolve according to the rules of succession. In this case, Ram Chander vs Devender Kumar, one son was the nominee of his mother. After her death, he claimed he was the owner of the money in the account, to exclusion of his brother. The same rule will apply to government savings and other investments.

Please let me know in easy words are my brother signature required.
Thanks,
Samson Daniel

adv. rajeev ( rajoo ) (Expert) 11 April 2011
The duty of the nominee is to distribute the properties of the deceased amongst the legal heirs of the deceased. Nominee cannot claim exclusive rights over the deceased's property. Bank has rightly asked the signatures of your brother because they are also legal heirs.
Naresh Kudal (Expert) 11 April 2011
Yes, nominee is not absolute owner of the deceased's property. Bank can ask for signature of legal hairs also.
Devajyoti Barman (Expert) 11 April 2011
The role or duty of the nominee s nothing but a trustee or custodian of the property so after its delivery to him he can make lawful distribution of the same among the legal heirs of the deceased.
Though the bank can hand over the money to the nominee but in view of the large sum of money involved and may be in the face of other legal heirs rightly asked for No objection from other legal heirs of your father.
Parveen Kr. Aggarwal (Expert) 11 April 2011
The bank while opening an account enters into an agreement with the account holder which is binding. When the bank accepts someone as nominee of the account holder, the bank is bound to make payment to the nominee in case of death of the account holder and the bank cannot challenge the authority of the nominee to collect money on behalf of the deceased account holder. After making payment to the nominee, the liability of the bank towards claim by any other legal heir ceases.

However, the nominee does not get absolute right over the money so received by him from the bank. He receives the amount subject to entitlement as per law of succession applicable in the case of deceased. The other legal heirs can claim their shares(entitlements) from the nominee. But the bank is nobody to decide about the entitlement of the legal heirs.
J K Agrawal (Expert) 12 April 2011
Bank has no right to ask for others consent but you are accountable to other successors of money.

Asking for others signature comes in definition of deficiency of services and breach of trust. You can file civil suit or consumer case. If the bank retained the amount dishonestly and with motive to cause wrongful loss, you can file a criminal complaint against bank officials.
Arun Bhatia (Expert) 12 April 2011
Bank has no right to ask for others consent but you are accountable to other successors. Also it is required that nomination should be registered with the Bank before the date of death. In your case it appears that the nomination is not registered with Bank as you are saying original copy of nomination is with you.
malipeddi jaggarao (Expert) 15 April 2011
Expert Mr.Parveen Kr.Aggarwal has explained the position very clearly. If the Bank does not execute the nomination then for what purpose it obtained from the customer? Ownership of funds is totally a different issue for which the legal heirs can claim their share either through court or through other means. But Bank does not have any right to stop payment of deposit proceed. Yes, it is a term deposit the nominee has to wait till its maturity and if wishes to close the account prematurely, all the legal heirs should join for such request. In the instant case, it is SB Account and Bank should not have any question to ask for payment.


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