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Prathvi (Advocate)     18 February 2012

Right of a nominee on fixed deposit

What is the Righ tof a nominee in matte of Fixed deposits



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 5 Replies

Vinoba (Advocate)     18 February 2012

Hi,

A Nominee's right is to receive the amount and hand it over to the legal heirs.

Vinoba.L

Advocate

Kumar Doab (FIN)     18 February 2012

Nominee is  person authorised by the depositor to receive funds in account in case of demise of depositor.

You may read the para of nomination in the account opening form, signed by depositor and kept in reocrd with the establishment with which account is maintained..

Nominee is expected to disburse the funds so collected amongst legal heir.

In what context you have raised this query?

Sanjeev (Lawyer)     18 February 2012

The nominee can claim the FD amount in case of demise of the actual holder.

Dr. MPS RAMANI Ph.D.[Tech.] (Scientist/Engineer)     19 February 2012

Slight correction to what Advocate Sanjeev said. Use the word receive in place of "claim" . A nominee does not automatically become beneficial owner/holder. He has to pass it on to or share it with persons who have legal claim.

malipeddi jaggarao (retired banker)     20 February 2012

All experts have given good advice.  Nomination is only to receive the deposit in case the depositor demises before maturity of the deposit.  Nominee can not ask for the proceeds of the deposits before maturity though the depositor dies.  He has to wait till the due date to receive money.  This is a method to receive the deposit amount in a hastle-free manner.  But it will not exclude the rights of legal heirs of the deceased over the amount received by the nominee.  In other words, the legal heirs can claim their legitimate share.  However, Bank will not a party for sharing of the amount, it can pay to the nominee on date of maturity.


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