I just want to know legal position about nominee in different situations. Let's say X appoints his wife Y as nominee for his bank account, mutual fund, fixed deposit. These are some queries that I have in this regard. 1) When can the nominee approach bank and mutual fund to withdraw money? 2) Can the nominee withdraw money when X remains hospitalised in unconscious condition? If yes, then what documents the nominee has to provide while drawing money? 3) Can the nominee withdraw money even if X is fine and alive? 4) What remedies available for X if he finds Y misused the position as nominee by withdrawing money and using it for other purpose not in his interest? (Let's say X is unconscious and hospitalised for long time and Y withdraw his money as nominee but doesn't use in his treatment.) 5) What is the best way to ensure nominee doesn't misuse your trust? Looking forward to your reply. Thank you.
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1. During the life time of X , the nominee cannot do any type of transaction
2. No, she needs an authority letter from Mr X
3. No
4. Firstly X can lodge a compliant against the bank for allowing the Y to do transaction without the approval X
- Further, X can also lodge a compliant before the police against Y for the offence of fraud and breach of trust.
5. X can move an application before the bank for the same .
1) nominee can approach bank ,mutual funds only on demise of account holder
2) he cannot approach authorities when account holder is hospitalised
3) he cannot withdraw money during lifetime of account holder
4) account holder can file case against nominee fir cheating , criminal breach of trust
1. Under the given circumstances never till X dies.
2. It can only be done under Court order. Once I have done it by filing an application before the Calcutta High Court wherein Justice Sanjib Banerjee had directed the Branch Manage of the Bank to release payment for the last pending Bill only of the Hospital
3. No. Not being the Nominee of X.
4. Y can not withdraw any amount from the Bank account of X. If she has done it without the mandate of X then he can write to the Bank complaining that such and such amount has been shown to be withdrawn from his account without his knowledge which the Bank shall have to pay back. A police complaint to this effect can also be lodged by X.
5. Ordinarily Nominee can withdraw the amount from the account of X when he is dead and not during his lifetime unless X has given mandate allowing Y to withdraw money from his account due to his sickness.
1. A nomination in banking terms refers to an account holder's right to appoint one or more persons who are entitled to receive the money in case of the death of the account holder.
Nominee is a mere custodian of the fixed deposit. He is the contact person for the account, in case the account holder is not reachable or in an event of the account holders death.
Thus a nominee should intimate about the death of the account holder with a copy of the death certificate and fill up the claim form to claim the amount lying in his various accounts to which he or she has been nominated by the deceased account holder.
2. Nominee cannot withdraw the amount during the lifetime of the account holder.
3. No.
4. The nominee cannot withdraw the amount from the account holder's account during his lifetime, if he or she does so then she or he would not have done in the capacity of a nominee but as the account holder himself/herself itself, by forging the signature of the account holder, it is a criminal offence for cheating, breach of trust, misappropriation and other offences.
5. If you don't trust the integrity of the nominee, then cancel the nomination in writing and appoint a different and trustworthy nominee.
1. The nominee can approach after the demise of account holder to realise the assets.
2. Without the written authorisation from account holder then nominee will not be allowed to realise the assets during the lifetime of X.
3. Y can get lodged a FIR for cheating and criminal breach of trust under Sections 406 and 420 IPC and he can also revoke the nomination.
Dear sir,
1.The nominee can approach the bank with the death certificate of the deceased and his / her proof of identity to be authenticated.
2. No, the nominee cannot withdraw money without submitting the death certificate. Only when there Is a joint account and it of Either or type, then only one can withdraw from your account.
3. Money cannot be withdrawn when the account holder is alive
Thank you
