RBI demands banks to ensure nomination in all deposit accounts & safety lockers

The Reserve Bank of India has asked banks to ensure nominations in new and all existing customers’ deposit accounts and safety lockers, highlighting that a large number of accounts do not have nominations. The nomination facility is intended to minimize the hardship and facilitate expeditious settlement of claims of the family members on the death of the depositor.

In a notification issued yesterday, the RBI has asked the Customer Service Committee of bank boards to review the nomination coverage periodically. The progress will also have to be reported on RBI’s DAKSH portal quarterly starting from the 31st of March this year.

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RBI has further asked banks to suitably sensitize the frontline staff for obtaining nominations as well as appropriate handling of claims of deceased constituents and dealing with nominees or legal heirs.

Stating that a recent supervisory assessment has revealed that nomination is not available in a large number of deposit accounts, RBI has asked banks to publicize the benefits of using the nomination facility through various media, including launching periodical drives toward achieving full coverage of all eligible customer accounts.

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