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sarita kumari (teacher)     20 February 2012

Bank nominee is owner of bank accout

my father had bank accout whose nominee is my elder sister. now she wants to no objection letter such as no right of father's money. she wants to write "you are giving on your will & you have no objection regarding this". If i write  this letter then i will get money from my elder sister or not. please suggest.


 5 Replies

Kiran Kumar (Lawyer)     20 February 2012

a nominee is not entitled to entire set of money, nominee is merely a reciever on behalf of other legal heirs.


the letter you are thinking about is not sufficient, there has be a proper transfer of money in appropriate hands as per prescribed procedure.


visit the concerned bank to know the procedure.

k.chandrasekharan (advocate)     20 February 2012

The use of the word 'had' is not clearly conveying as to why the question of nomination is raised.

If the account holder is alive, nominee has no right on the bank account. Nomination can be changed any number of times by the account holder.

If the account holder is not alive, the nominee can present a simple 'nominee recognition form' available at the bank, alongwiyh a duly attested copy of the death certificate. Then the bank will pay the money to the nominee, by the mode desired.

As rightly pointed out by Mr.Kiran Kumar, the nominee is trustee for the money so received, and has the obligation in law to distribute iot in accordance with any will left by the deceased account holder or to distribute it in accordance with law (if no will is left), among class 1 heirs of the deceased equally.

Nominee can not transfer the right of receiving the money to any other person.

Sometimes banks by way of extreme precaution, insist upon furnishing no objection letter from other legal heirs in spite of the nomination, or in case any of the legal heirs had lodged a claim or raised objection for disbursement of the amount. In the absence of full facts, advice on such contingency is not possible.

Also, the question is poorly drafted. What the questioner wants is not clear from the incomplete and incoherent question.

Ajit Singh Cheema (practising Advocate)     20 February 2012

This is with reference to 'bank nominee is the owner of the bank account',
I firmly differ with the opinion given.The nominee shall recieve the balance in the deposit accout on behalf of all the legal heirs after the death of the depositor.

Kumar Doab (FIN)     20 February 2012

Learned Mr. Kiran Kumar and Mr. Chandrasekharan have given valuable advice. Kindly follow it.

"Sometimes banks by way of extreme precaution, insist upon furnishing no objection letter from other legal heirs in spite of the nomination, or in case any of the legal heirs had lodged a claim or raised objection for disbursement of the amount."

You must not write the language wanted by your sister.

It seems that BM of the bank has asked your sister to bring NOC from other legal heirs and your sister is manipulating. Your sister is duty bound to collect the amount from bank and distribute amongst other legal heirs as per their share.

You may approach the BM and indicate that you are willing to give letter that you have no objection for disbursement to nominee (your sister) but you want your share. In some of the instances BM may disburse the amount to nominee in his/her a/c in same branch and transfer the share to other nominees on the strength of cheque from nominee to other legal heir in their a/c in same branch. Therefore all of you may open an a/c in same branch and settle the matter amicably, on the spot. Thus you shall be saved from litigation, need for getting succession certificate, letter of administration etc.

Arun Kumar Singh (Senior Manager Marketing)     21 February 2012

As per; RBI/2004-05/490 DBOD.No.Leg. BC.95 /09.07.005/2004-05

June 09, 2005Circular issued in 2005 the Bank is bound to release the amount in favour of Nominee but as rightly suggested by learned Forum member you note that mere nomination does not gives absolute right on the money you may receive the same but need to distribute eqaully as per Hindu Succession act 1956 amongst the deceased legal heirs unless there is a will etc.

As such the Banks ask for relinquishement declaration or other papers but you just insist on thsi circular whcih is very clear enough and additionally you may write to Bank that you are laible for Disbrusement of Claims if any by legal heirs as per HSA 1956 in future or produce letter of relinqueshement by other legal heirs.

Attached File : 307737196 rbi2.pdf downloaded: 109 times

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