Nomination in a saving account in bank

Sanjit (Querist) 11 October 2012 This query is : Resolved
Sir,

I have saving account in a Nationalised Bank with my mother.Currently there are two STDR. My daughter is nominee of this saving account. Out of Social Pressures / Obligations I'm forced to make a new FD of Rs.1,50,000/- Now the Queries are

1. Can I nominate my niece only for this new FD.
2. If yes, can she (my niece) later challenge the original nominee of the saving account (i.e.my daughter).
3. Does it create complications (at maturity, in case of any miss-happening).

SKS

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Tajobsindia (Expert) 12 October 2012
For your 1. While openning the FD from SDTR you will get an option to 'retain' the nominee. For adding your Niece in SDTR proceeds (funded) FD you have to visit your Branch as different nationalised Bank have slightly different Rules. In generic yes one can nominate your niece in F/D from an SDTR A/C.

For your 2. No. Bze she was added later on otherwise you could have retained your daughter's name as nominee while openning F/D from a SDTR A/c. BTW, a nominee is just a trustee of instrument till its legitimate heir surfaces to claim the same.

For your 3. Complication will be only as per Succession Laws / Heir Certificate if a person challenges for legitimate share.

malipeddi jaggarao (Expert) 12 October 2012
Well advised by Tajobsindia above.
Please keep in mind:
For any new FDR - you can nominate new one.
Even in the existing FDR - you change the nominee.
There is no need that nominee should be in all your deposits.
Regarding complications later date, nominee does not get any legal rights. It is facility to handover the funds into the hands of nominated person without any hussles. As per law, nominee is a trustee, and supposed discharge the duties of trustee. If anybody contests the actions of nominee, they can go court challenging the actions and establish their own rights as legal heirs. I Hope the matter is very clear now.

Guest (Expert) 12 October 2012
There is a difference between the nomination and succession under hindu succession act. Anyone can nominate anyone he/she likes to receive the money of the bank account after death of the account holder, but the natural heirs would have the right to claim their shares of money from the amount received by the nominee.

So, nomination cannot be challenged by anyone merely on the plea of being a rightful natural heir. As such, the replies to your questions are as follows:

1) You can nominate your niece or even your daughter at yur own discretion.

2) Your neice cannot challenge the nomination in favour of your daughter in the savings account.

3) It won't create any complication at the time of maturity. However in case of mishapenning of death of the account holder due share of amount can be claimed legally by the rightful Descendant heirs of the deceased from the nominee.