Nominees in Bank Account: To deal with the ever increasing unclaimed money in banks, the government is preparing to change the rules related to the banking sector. After the new change is approved, you will be able to give the name of four nominees while opening a bank account.
Bank Account Nominees: The banking sector of the country has been growing continuously in the last few years. The government’s focus is on reducing NPAs and strengthening the financial position of banks. Decisions were taken by the Union Cabinet on Friday for some important changes related to the banking sector. In this regard, the information given by the cabinet said that the government has approved about 6 changes in the banking rules. The biggest change in this has been made regarding the nominee of the bank account. All account holders will be affected by the implementation of the new rule. In the information given by the cabinet, it was told that now up to four nominees can be made in any bank account.
The government’s aim is that customers should not be troubled
Apart from this, a new system of making ‘constantly and simultaneously’ nominees will also be started. The purpose of these changes is to save the customer from any kind of trouble. Actually, it was learnt in the past few days that there are thousands of crores of rupees in the accounts of different banks for which there are no claimants. A special campaign was also run by the RBI regarding this. But even that has not yielded satisfactory results. For this reason, preparations are being made to change the rules.
What is the rule now?
Now when you open a bank account, you have to enter the name of a nominee. Its purpose is to give the money deposited in the account to that person after your death. Right now you could write the name of only one person as nominee for this. But now after the approval given by the Union Cabinet, under the new rule, you will be able to make more than one person a nominee in your account. Apart from this, like insurance and Hindu Undivided Family (HUF) account, the facility of making a nominee continuously and simultaneously will enable joint account holders and heirs to get money after the death of the account holder.
The Finance Minister had expressed concern
According to the news published in the Times of India, there can be more than one nominee in the Public Provident Fund run by the Center. However, complete information about these rules will be clear only when Finance Minister Nirmala Sitharaman will present the bill in Parliament. The government and the officials have not given much information about this. A few months ago, Finance Minister Nirmala Sitharaman had expressed concern about the money deposited in bank accounts and other places, which no one claims.
Also ordered to return the money to the rightful owners
He had ordered banks, mutual funds and other financial companies to return this money to the rightful owners. But despite this, by the end of March 2024, the amount of such money increased to more than Rs 78,000 crore. Banks had tried to settle claims of such money several times. There is also a plan to make changes in the law so that if someone has bonus of shares or bond money lying and it is not claimed, then it can be transferred to the Investor Education Protection Fund (IEPF). Currently, only the shares of banks are transferred to IEPF.
Freedom to decide the salary of the auditor
Apart from this, the government has also proposed to give banks the freedom to decide the salary to be given to the auditor. Currently, this right was with the Reserve Bank. Apart from this, shareholders who have shares worth up to Rs 2 crore will be considered important shareholders in the concerned company. Earlier this limit was Rs 5 lakh, it was fixed about 60 years ago. The bill also proposes to redefine the dates of regulatory compliance for banks. Under this, banks will have to submit the report on the 15th and last date of every month, currently it happens on the second and fourth Fridays.
