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RBI is going to make an important change in the matter of nominee details in the bank account. In this regard, it has sought suggestions from all the banks. Recently, Parliament has passed the Banking Laws Amendment Bill 2024. According to this amendment, now the account holders in the bank can give the names of four nominees.

The Reserve Bank wants the email ID and phone number of all the nominees (RBI nominee rules 2025) should remain with the bank. In this regard, it has sought suggestions from the banks of the country. For this change, the amendment will also be required in the Banking Company Nomination Rules 1985.

Why does RBI want to do this

According to a report, the purpose of this process of RBI (new bank nominee rules) is to reduce unclaimed deposits in banks. If the bank has four nominees and all their email IDs and phone numbers, then in the absence of the account holder, the bank can contact any of them. Currently, the account holders give the name of the nominee, but the bank does not have any means to contact them.

According to the current rules, if a bank account is not operating for 10 years or more, then the amount deposited in that account is transferred to the Depositor Education and Awareness Fund of the Reserve Bank.

What do experts say

Bankbazaar.com CEO Adil Shetty says that unclaimed deposits in banks have exceeded Rs 78,000 crore. The main reason for this is the inability of banks to contact the nominee. Often, family members are not aware of the dormant account, or there is no nomination detail in such an account. This delays the claim process. In difficult times, the family also has to deal with emotional and financial pressure.

According to Shetty, allowing four nominees in every account and having the nominee's phone number and email available will make it easier for banks to contact them. This will bring transparency, and banks will be able to start the claim process easily. There will be no delay in the claim and there will be no dispute. If the bank is unable to contact one nominee, the bank can contact the others.

Apart from this, when there are more than one nominees and the bank has their contact details, the cases of making false claims will also reduce. This will stop disputes in families and the need for legal intervention will be reduced. This reform will speed up the settlement process and also increase the trust of customers in banks. The rightful heir of the account holder will get the money without any hassle.

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