GK
BANKING AWARENESS AND SEBI
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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It is a part of will on behalf of a depositor
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A facility given to depositors by the Government
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It is a process of appointing legal heir by the depositors
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It confers a right to the nominee to receive payment of a deposit after death of depositors
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Detailed explanation-1: -Nomination is the right conferred upon the holder of a bank account to appoint one or more persons who will be entitled to receive monies upon the death of the account holder.
Detailed explanation-2: -Nomination is essentially a temporary arrangement so that property do not remain ownerless during the period where succession issues are resolved. Nomination is only a means and not an end. If nomination is not done, legal heirs may face complications in proving their right.
Detailed explanation-3: -A nominee is merely a caretaker in technical terms. They are the ones in charge of guaranteeing that the depositor’s legal heir receives the money from a fixed deposit. While the nominee may be the same as the legal heir at times, their status as nominee implies they don’t actually own the money.