Nomination

(i) Repayment of Deposits: Section 45Z of the Banking Regulation Act provides that a depositor or depositors of a banking company may nominate one person in the prescribed manner as nominee to whom the deposit may be returned in the event of the death of the sole depositors or depositors. Unless the nomination is varied or cancelled, the nominee is entitled to all the rights of the depositor/s in the event of death of the depositor/s. In the case of minor nominee, there is also a provision to appoint a person to receive the deposit on behalf of the minor. Rule 2 of the banking companies Rules, 1985 provides for the procedure and forms for making nomination in respect of deposits with commercial banks.

(ii) Articles of Safe Custody and Safety Lockers: There are also provisions in the Banking Regulation Act for nomination in respect of articles kept in safe custody with banks and safety lockers. Sections 45ZC and 45ZE provides that any person who leaves any article in safe custody and in safety lockers respectively with a banking company, may nominate one person as nominee to receive the article in the event of death of the person. The nomination has to be in prescribed manner and on return of the article kept in safe custody or removal of contents of locker by nominees as provided, the bank gets a valid discharge. Rules 3 and 4 of the banking companies Rules, 1985 deal with the form and procedure applicable to article in safe custody and safety lockers respectively.