Big changes are coming for bank account holders! The government is planning to introduce a new law that will make it mandatory for account holders to add up to four nominees for their accounts. This will come into effect after the Banking Amendment Bill is passed in Parliament during the winter session.
What’s the New Rule?
Currently, bank accounts only allow one nominee. But under the Banking Laws Amendment Bill 2024, you’ll soon be able to add up to four nominees. Here’s how it works:
- Choose nominees by priority: You can list them as the first, second, third, and fourth nominee. If one nominee isn’t available, the next in line will inherit the account.
- Split the share: Instead of priority, you can divide the account amount equally or as per your choice among the four nominees.
Why Is This Rule Important?
The government wants to simplify how funds are distributed after the account holder’s death. By allowing more nominees, families can avoid disputes and ensure smoother inheritance.
What Else Is Changing?
The Banking Bill will also amend key laws like:
- Reserve Bank of India Act, 1934
- Banking Regulation Act, 1949
- State Bank of India Act, 1955
- Banking Companies Act, 1970 and 1980
What Should You Do?
- Stay updated with your bank on when this rule takes effect.
- Decide in advance who you want as nominees and how you’ll divide the shares.
This new rule is aimed at improving transparency and making banking more secure for account holders and their families. What do you think of this move? Let us know in the comments!