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SEKAR XXXXX (Sr Engineer)     28 December 2014

Nominee clarification on fixed deposits

My parents has the fixed deposit in bank and Financial  Institutions in their names. They appointed myself as a nominee. They do not written any will so far.


After  my parents life  ,The bank will give the money to me (As per the nominee). Is there any rights to claim these fixed deposit other legal hires?

Other legal hire will go to  court for claiming their shares in the fixed deposit. What will happen ?


Really appreciated your valuable advice and suggestion on these matter.





 8 Replies

Dr J C Vashista (Advocate)     28 December 2014

Nominee is just to take care of the assets, valuables or property for distribution to autorised persons on behalf of principal,  (parents in your case)

SIVARAMAPRASAD KAPPAGANTU (Retired Manager)     28 December 2014

Nomination for a Bank Deposit is governed by Banking Regulation Act and the provisions relating to Nomination in Banking Regulation Act do not substitute the Succession Act. Therefore, Nomination facility will only ease the formalities of settling the claim and makes the job of a Banker easy.


The Nominee receives the money on behalf of all the claimants.  When there are other claimants, he alone cannot appropriate the entire amount of the Deposit for which he is the sole Nominee.  Nomination absolves the Bank from any claims from other legal heirs when the claim is settled under nomination, when other claimants did not put forth their claims.


Banks settle the claims quickly where nomination is available.  However, other claimants also put forth their claims on the same deposit/s, before the claim is settled under Nomination, Banks will not settle the claim but advise the claimants to settle the dispute.


This aspect was dealt with in detail in this very forum and you can read the view points with the help of following link:



GANDHI MOHAN BHARATI (Pensioner)     28 December 2014

Actually as per RBI instructions, the Banks can pay the claim to the nominee and it is not their responsibility to ask other claimants to settle amongst themselves. However, if the claimants get a court order advicing the Bank to withhold payment to the nominee, then alone will the Bank not settle the claim of the nominee.

Isaac Gabriel (Advocate)     28 December 2014

Why are u in a hurry when your parents are alive.Ask them to settle the dispute which might arise later in advance by will.

SEKAR XXXXX (Sr Engineer)     28 December 2014

Dear Isaac Sir,

Let's explain the hurry and my concern.

The money is mine.Which is my salary earning. I have deposited my parents name.

Now I will ask to  transfer the deposit to myself.They are happy to do it.But I don't want to do it.

The reason is some time they will thing we don't have the money who will take care without money?

The another one important thing suppose i'm not live with some other reason. my parents would be safest position.I'm not sure my wife will take of my parents.

What i knows before raising this forum.nominee is the only one person elegible for the deposits.other legal hier my sister not have any rights.


Now I understood nominee would not be sufficent .My parents will write the will to me.Then only i have the full rights to own the money.







Kumar Doab (FIN)     28 December 2014

The former or survivor option can suit you the best............................

FDR can be assigned ........check with BM/Bank.....

T. Kalaiselvan, Advocate (Advocate)     29 December 2014

You have rightly understood the meaning of nominee under such situations. A nominee for bank deposits or even LIC claims is just a trust who can receive the money on behalf of the legal heirs of the deceased, he cannot deny or deprive the legal heirs of their rights over it. Thus as you proposed, ask them to execute a will on your name benefiting the assets to you.

Kumar Doab (FIN)     30 December 2014

It is reiterated that :


The former or survivor option can suit you the best............................

FDR can be assigned ........check with BM/Bank.....

Sit with your banker and understand.

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