The Banking Companies (Nomination) Rules, 1985 – Clarifications – RBI circular No. DBOD.No. Leg. BC. 83/09.07.005/2010-11
DBOD.No. Leg. BC. 83/09.07.005/2010-11, Dated- March 30, 2011
All Scheduled Commercial Banks
The Banking Companies (Nomination) Rules, 1985- Clarifications
1. Witness in nomination forms
As you are aware, the Banking Companies (Nomination) Rules, 1985 have been framed in exercise of powers conferred by Section 52 read with Sections 45ZA, 45ZC and 45ZE of the Banking Regulation Act, 1949. The nomination forms (DA1, DA2 and DA3) have also been prescribed in the Nomination Rules. These forms, inter alia, prescribe that the thumb impression of the accountholder is required to be attested by two witnesses. It has come to our notice that some banks also insist on attestation of signature by witnesses.
We have examined the issue in consultation with Indian Banks’ Association and clarify that signatures of the accountholders in forms DA1, DA2 and DA3 need not be attested by witnesses.
2. Nomination in case of joint Deposit Accounts
It is understood that sometimes the customers opening joint accounts with or without “Either or Survivor ” mandate, are dissuaded from exercising the nomination facility.
It is clarified that nomination facility is available for joint deposit accounts also. Banks are, therefore, advised to ensure that their branches offer nomination facility to all deposit accounts including joint accounts opened by the customers.
Banks are advised to ensure strict compliance of the instructions as per the clarification given above.
(P R Ravi Mohan)
Chief General Manager