Settlement of claims from a nominee :

Banks obtain nominations from the depositors in a prescribed manner and should register the nomination in their records. A proper acknowledgment is to be given to the depositor. Once the banker gets a claim from the nominee of the depositor, the banker should verify and satisfy himself

(i) whether the claim is received from the person whose name is recorded as nominee in bank’s records, and

(ii) the deposit amount may be paid to the nominee after proper verification of the necessary documents like claim form, the death certificate of the depositor, proper identity of the nominee

(iii) the banker should get an acknowledgement from the nominee . The nominee should acknowledge the receipt of the amount of the deposit, including interest if any, duly signed by the nominee on a revenue stamp. The acknowledgement should clearly state that the nominee has received the deposit amount, as nominee of the depositor. Obtaining the acknowledgement and stamped receipt (as mentioned above) serves as a valid discharge of the bank.

As regards safe deposit lockers and custody accounts, the claims can be settled by the bank after proper verification of bank’s records and other relevant documents like claim forms, death certificate of the bank’s customer and identity of the nominee.

In case no nomination is available, then banks should follow their legal department’s advise and bank’s policy and procedures, to settle the claims. Important documents to be obtained are: claim forms, death certificate of the depositor, succession certificate if applicable, proper identification of legal heirs, proper acknowledgment of repayment of deposit/s from the legal heirs.