nomination - Rightsofemployees.com

RBI issues notification on nomination in FDs, Lockers and savings account. Key Details Inside

Jyoti — Sat, 18 Jan 2025 12:00:27 +0000

New Delhi: The Reserve Bank of India (RBI) has issued instructions to banks and NBFCs (non-banking financial companies) regarding nominee (legal heir). According to this, nomination is now necessary for every Fixed Deposit (FD), savings account and locker.

RBI has ordered all banks to get nomination from every old and new customer. The purpose of the nomination facility is to reduce the difficulties of family members on the death of the depositor / depositors and to settle claims quickly. The central bank circular states that nominees are not available in a large number of deposit accounts. Know why nomination is necessary…

What is the reason?
According to the Economic Times report, RBI has found that many accounts do not have nomination. In such a situation, if the account holder dies, his family members have to face a lot of problems. With nomination, if any family member passes away, the nominee will easily get the money from his savings account, FD or locker without any delay or legal hassle.
What are the instructions?
According to the RBI circular of Friday, the instructions for nomination for scheduled commercial banks (SCBs – except RRBs), primary (urban) co-operative banks (UCBs) and deposit taking NBFCs have been included in the master circular. In these rules, banks have also been told to explain the benefits of nomination to the people and provide information about it everywhere.
How will monitoring be done?
According to the new RBI directive, the Customer Service Committee (CSC) or the Board of Directors will regularly review the nomination status. From March 31, the progress report will be given every quarter through the DAKSH portal. Changes will also be made in the account opening form so that the customer can choose a nominee or refuse nomination. RBI has said that campaigns should be run from time to time.
Who is a nominee?
A nominee in an account or investment is a person whom the account holder wants to receive his money after his death. When you open an account or add a nominee’s name later, it ensures that the account holder’s assets are passed on to that person. This person can be a family member or a friend or an acquaintance. The account holder can change the nominee’s name in his account whenever he wants.
Why is it necessary?
By having a nomination, the family can avoid legal hassles. If there is no nominee, then the family members or legal heirs have to go through a long and tedious process to get the property. If there is a nominee, then he just has to show his address, bank details and identity card and the money will be transferred in his name.
essential to avoid hassle
Due to the absence of a nominee, the family of the deceased may face legal hurdles in getting money from the bank/insurance company. Sometimes a distant relative or an unknown person also declares himself as the heir. In such a situation, the matter becomes more complicated. If there is a dispute among the family members, then the matter goes to the court. It may take 6 months or several years to decide. To avoid this problem, get the name of a nominee registered in your account today itself.

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Why should you open a Demat Account? Know these 10 reasons and its benefits

Jyoti — Tue, 17 Dec 2024 08:05:27 +0000

A demat account protects your investments from fraud and reduces the risk of storage, theft, damage and malpractice. It also acts as a one-size-fits-all store for all your investments. This makes it secure and easy to use.

Moreover, it enables you to track and access all your investments in shares, government securities, exchange-traded funds, bonds and mutual funds from anywhere in the world under one account in electronic format. There are many advantages of having it. Let us understand it here.

10 Benefits of Demat Account

Protect your holdings

When you open your Demat account, your holdings are protected from loss due to wear and tear, misplacement or theft.

Keeps investments safe from fraud

Before online settlement, there were many cases of fraud or copying of owners using fake documents, but after the introduction of demat accounts in the market, it became impossible to fake or copy someone’s holdings.

Instant transfer of shares

Another advantage of a demat account is that not only does the transaction become secure or easy, but settlement is also instant. Quick settlement also reduces the risk of fraud.

Get instant access from anywhere:

It is easy to buy and sell shares from anywhere in the world using your laptop or mobile.

Unlimited shared storage

lets you not worry about the amount of shares you have stored. You can trade in small chunks and monitor your account online.

You can also get loans

Another advantage of having a demat account is that the securities held in your online account can be used to obtain loans from various banks. This can provide a lot of flexibility and convenience for those looking to obtain financing for different purposes.

You can update your account automatically.

If there is any change in the stock in your demat account, like bonus issue, stock split etc., you will get the update automatically in your demat account.

Nomination is available

According to SBI Securities, in case of unforeseen circumstances, your demat account ensures that your holdings are safe, and the appointed nominee will receive the shareholding.

Reduced Transaction Costs

The advantage of having a Demat account is that you can enjoy lower transaction costs, the charges are levied per ISIN, whether you transfer 1 share or 100 shares.

Eliminates Bad Delivery

In a depository environment, securities cannot be returned “under objection” for any reason whatsoever, and hence the question of bad delivery does not arise, nor is the investor faced with any uncertainty about the securities purchased by him.

Can I claim PF without nomination ?

Pravesh Maurya — Sat, 30 Dec 2023 12:14:05 +0000

It is very important for Employees Provident Fund Organization (EPFO) account holders to complete the nomination process. If there is no nominee in the account, the account holders (EPFO e-Nomination Process) get many benefits. In such a situation, EPFO keeps advising its subscribers to update the nominee in the account from time to time.

According to the website of Employees’ Provident Fund Organization (EPFO), it is mandatory to file nomination by members as per Para 33, 34 and 61 of the EPF Scheme, 1952. Nomination is also required while submitting online death claim (Form 10-D, 20 and 5-IF). During the service time of the EPF member, the member can file and update e-nomination any number of times.

Note that employer approval is not required to change nomination details, members can use Aadhaar based e-sign to file nomination. Nomination cannot be changed after the death of the EPF member.

According to the information shared by EPFO on its official Its settlement can be done online without any hassle. Along with this, account holders get the convenience of availing the benefits of schemes like Employee Pension Scheme (EPS), Employee Deposit Linked Insurance Scheme (EDLI) and PF withdrawal. Benefits of all these schemes can be availed online after completion of nomination.

Choose the process of filing an e-nomination for speedy claim settlement.#epfo #epfowithyou #HumHaiNa #SocialSecurity #nomination #claims #पीएफ #ईपीएफ pic.twitter.com/mxQiQRPuJo

— EPFO (@socialepfo) December 28, 2023

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Good news for investors! SEBI changed rules to make trading easier

Pravesh Maurya — Wed, 22 Nov 2023 11:08:44 +0000

Securities and Exchange Board of India i.e. SEBI keeps a close watch on the stock market. Many rules are implemented to prevent any investor from committing any kind of fraud. Recently SEBI has issued a circular. As per this circular, PAN KYC details and enrollment have been abolished. Read the full news

In a relief to holders of physical shares, market regulator SEBI has done away with the requirement of freezing these without PAN, KYC details and nomination. Securities and Exchange Board of India ( SEBI ) issued a circular regarding this. According to this circular, this step has been taken with the aim of simplifying the rules and it will come into effect immediately.

This decision has been taken after receiving feedback from Registrar Association of India and investors. Under the rule, it was mandatory for all holders of physical shares of listed companies to furnish PAN, nomination, contact details, bank account details and specimen signatures for their respective folio numbers.

SEBI had said in May that folios whose details are not available after October 1, 2023, will be frozen by the Registrar of Issue and Share Transfer Agents (RTAs). Amending the circular issued in May, SEBI said that the reference to the word freeze has been removed.

Why did SEBI change the rules?

SEBI said that they have taken this decision to make share trading easier. After the change in this rule, the unexpected challenges faced by investors will be reduced to a great extent. When folios were frozen, investors had to face many problems. SEBI has taken this decision after suggestions received from investors.

SEBI had issued a circular in May this year. In this circular he had removed the reference ‘freezing/frozen’. The decision was taken after consultation and feedback from the Registrar Association of India and investors.

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Big change in the rules of mutual funds, it will be necessary to give nomination details from October 1, check details, otherwise…

Pravesh Maurya — Sat, 10 Sep 2022 07:28:54 +0000

There is going to be a big change in the rules related to mutual funds soon. It will be mandatory for investors who subscribe to mutual funds on or after October 1, to fill in the nomination details. Investors who do not want to fill the nomination details, they will have to fill a declaration, in which they will have to declare not to take the facility of nomination.

Asset Management Companies (AMCs) will have to provide the option of nomination form or declaration form in physical or online mode as per the requirement of the investor. Under the physical option, the form will have the investor’s signature, while in the online form, the investor will be able to use the e-sign facility.

If an Asset Management Company (AMC) wants to provide the facility of online submission to its customers, then its validation will have to be done through Two-Factor Authentication (2FA). One of these factors will be mandatory to have a One Time Password (OTP) sent to the customer’s registered mobile number or email.

This rule was to be effective from August 1

These new rules, which are being implemented from 1 October, were to be implemented from 1 August 2022, but in August this deadline was extended till 1 October 2022. In July, market regulator SEBI had stayed the implementation of rules related to nominee details for mutual fund holders. Due to which the mutual fund investors were not getting the option to nominate or come out of the nomination.

The nomination form or opt-out declaration form will be verified in two stages by the asset management companies. OTP will come on the registered e-mail or mobile phone number of the investor. Therefore, the investor should check his registered mobile number or e-mail once again.

SEBI has implemented this rule to bring uniformity in the rules related to all investment options of the security market. In 2021, SEBI had also provided such an option to investors opening new trading and demat accounts. Apart from this, SEBI had issued an operational circular for better regulation of the corporate bond market and to give access to all applicable rules to all issuers and other stakeholders at one place.

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