2024-08-04 05:27:40
New Delhi: The Union Cabinet on Friday approved several important amendments related to the banking law. The most important among these is the option of 4 nominees for bank accounts. According to the Times of India report, after the change in the banking law, bank accounts will also be able to have more than one nominee. This will make it easy for the joint account holder or heir to get the money in the account after the death of the account holder. Understand with NBT why this rule was needed and how people will benefit from it.
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Why was there a need?
By the end of March, the number of accounts for which there is no one to claim has increased to 78 thousand crores. A big reason for this is that till now there is only one nominee option in the account. In such a situation, if the nominee also dies in an accident, then there are many problems in the claim. The government wants to reduce the number of unclaimed accounts.What will be the benefit?
Having more than one nominee will reduce the number of unclaimed accounts and the family members will be able to get their money. Suppose the husband has made the wife a nominee and the wife has made the husband a nominee, but both of them die in an accident. But, if the nominees are 2, 3, 4… then even after such accidents, the claimants will remain and the nominee of the account holder will be able to get the money. Therefore, it is being considered to increase the number of nominees for each account to 4.
What are the rules now?
Right now when you open a bank account, you have the option to decide a nominee. After the death of the account holder, the money deposited in the account has to be given to the nominee. Right now there is an option to decide only one nominee in savings account and fixed deposit.
Where did the idea of multiple nominees come from?
Currently, there is a facility to appoint more than one nominee in insurance and Hindu Undivided Family (HUF) accounts. The government got the idea of four nominees from here. After getting the approval of the change from the cabinet, now Finance Minister Nirmala Sitharaman will present this bill in the Parliament. Several nominees are also being considered for Public Provident Fund (PPF), however, complete information will be available only when the bill is presented in the Parliament.
What will happen to the unclaimed money?
Under the new change, if there is bonus (dividend) of shares or money from bonds lying in an account and no claim has been received for it, then it will be transferred to the ‘Investor Education Protection Fund’ IEPF. Currently, only bank shares are transferred to IEPF. Along with 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, which was fixed about 60 years ago.