Every person plans to leave behind whatever estate he has for his dear ones so that they can lead a comfortable life even after he is gone. But many a times people become so indulged in securing big money for their family that a small bank account running in their name skips the eye.
The result is a recent observation that there is a huge chunk of money lying with banks with practically no owner to claim it. Research indicates that the money mostly belongs to Hindu Undivided Families (HUF) and those who expired before nominating somebody for their money.
A slight carelessness on the part of the account holder makes the money unusable by his family members after his demise. It is for this reason that the government has implemented the nomination scheme with respect to all banks.
Nomination scheme allows every individual opening a bank account, the facility of naming a person as nominee of the account and its possessions after his death. In other words, the nominee is entitled to the amount lying in the account in case of death of the individual.
Nomination facility is given for all kinds of accounts namely single or joint account. In order to file a nomination, the individual is required to fill form DA-1. The facility can be availed for fixed deposits, savings account, current account and recurring deposits.