There is good news for bank customers. The government has made a significant change in the rule for adding nominees to bank accounts. The Banking Laws (Amendment) Bill, 2024, passed in the Lok Sabha on Tuesday, allows bank account holders to add up to 4 nominees. The bill, introduced by Finance Minister Nirmala Sitharaman, was approved by the lower house of Parliament through a voice vote. Responding to the discussion on the bill, Sitharaman stated that depositors will have the option to add all 4 nominees either one after the other or simultaneously.
Customers with Lockers Can Only Choose Sequential Nomination
Customers who avail of locker facilities will only have the option to nominate sequentially. This means they can add nominees one after the other.
Government’s Focus on Bank Stability
Since 2014, the government and RBI have worked to maintain bank stability. Finance Minister Nirmala Sitharaman emphasized that the aim is to keep banks safe, stable, and healthy, with visible results after 10 years. The bill proposes extending the tenure of directors (except chairman and full-time director) in cooperative banks from 8 years to 10 years. This aligns with the Constitution (97th Amendment) Act, 2011.
No Plan to Merge Government Banks
Minister of State for Finance Pankaj Chaudhary confirmed that the government is not considering the merger of public sector banks. He assured that reforms have strengthened the financial position of these banks.
Here’s how to add four nominees to your bank account:
- Visit Your Bank: Go to the branch or log in to online banking.
- Get the Nominee Form: Request the form at the branch or find it online.
- Fill in Details: Add nominee information (name, relationship, DOB, contact).
- Submit the Form: Submit it to the bank either physically or online.
- Verification: The bank will verify and confirm your nominees.
- Repeat (if needed): Add nominees sequentially, if preferred.