Finance Minister Nirmala Sitharaman introduced the Banking Laws (Amendment) Bill, 2024, which includes a proposal to increase the number of nominees allowed per bank account and locker from the current limit of one to four.
Bank locker charges 2024: SBI vs HDFC Bank vs ICICI Bank vs Canara Bank vs PNB
Currently, the Banking Regulation Act allows single or joint deposit holders to appoint a nominee for their deposit. Such a nominee can also be appointed for items left in custody of a bank or for a locker hired from a bank. The nominee can access the deposit, articles, or locker in case of death of the person who nominated him.
What does the new Bill propose
As per news reports, the Bill has proposed nominations of up to four nominees. For deposits, such nominees can be appointed successively or concurrently, although for other purposes, they can be appointed sequentially. In the case of several nominees, the nomination will be effective in a predetermined proportion. For subsequent nominations, the nominee identified higher in the nomination order will be given priority.
“The Banking Regulation Act allows single or joint deposit holders to appoint a nominee for their deposit. Such a nominee can also be appointed for items left in custody of a bank or for a locker hired from a bank. The nominee can access the deposit, articles, or locker in case of death of the person who nominated him. The Bill allows the appointment of up to four nominees for these purposes. For deposits, such nominees can be appointed either successively or simultaneously while for other purposes they can be appointed successively. In case of simultaneous nominees, the nomination will be effective in a declared proportion. For successive nomination, the nominee who has been named higher in the order of nomination will receive priority,” according to The Banking Laws (Amendment) Bill, 2024.
Why nomination is required for lockers, savings accounts?
As per the Indian Banks’ Association (IBA) website, “Banking Companies (Nomination) Rules 1985 permits banks to pay dues to nominees in the event of death of depositor(s) without asking for succession certificate or verifying claims of legal heirs. This simplifies settlement. Of course, as Trustee the nominee is accountable to legal heirs.
- Nomination facility available for bank deposits, safe deposit lockers, safe custody articles.
- There can be only one Nominee for a deposit account whether held singly or jointly.
- There can be two nominees for a jointly held locker.
- A person legally empowered to operate a minor’s account can file a nomination on behalf of the minor.”
According to the SBI bank website, “It is always beneficial to avail the benefits of nomination facility/ survivorship clause provided to locker-hirers. The major advantage of availing these facilities is that in the event of unfortunate death of one of the joint locker-hirer, the right to the contents of the locker does not automatically devolve on the surviving joint locker-hirer/ nominee (s), unless there is a survivorship clause/ nomination.”Bank will charge a nominal annual rent, which depends on the size of the locker and the centre at which the branch is located. The rent should be paid in advance for the Financial Year. A copy of the Locker Agreement signed by both parties will be furnished to Locker hirer to know their rights and responsibilities.
How to add or change nominee to your locker in HDFC Bank
You will need to add nominees to your bank locker, just like you would with any other financial tool or service. Here’s how, per the bank’s website, a person who has a locker at HDFC Bank can add or modify a nominee.
Individuals can opt for a nomination facility for a safe deposit locker in HDFC Bank. Up to two nominees can be selected for lockers held in joint names. Locker owners can provide mandates for locker access in the same way that deposit account holders can.
How to add, change a nominee in HDFC Bank safe deposit locker
To change or add the nomination, one can download the forms or visit the branch fill the required application and submit it to your locker branch only.
- To add a nomination: Form SL1 (sole hirer)/SL1A (joint hirer)
- To cancel a nomination: Form SL2
- To change a nomination: Form SL3 (sole hirer)/SL3A (joint hirer).
