What does 39 Nomination 39 for a deposit account in the bank mean ........

Finance (Phase -I & II) Banking and Financial system in India

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What does 'Nomination' for a deposit account in the bank mean?

Mandate given by the close relatives of the depositor to settle the death claim in case of death of the depositor

Mandate decided by the bank to settle the death claim of its depositor

Mandate of the depositor in favor of one or more persons to claim the amount on death of the depositor

Mandate of the depositor in favor of a close relative who can claim the amount on death of the depositor

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Explanation:

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.

Banks ask their account holders to make nominations which mean that they should nominate persons to whom the money lying in their accounts should go in the event of their death. Nomination can be made in account opening form itself or on a separate form indicating the name and address of the nominee.