Nomination

"Sir! Please help Sitaram's family." requested Krishna.

"It's been many days since he died. I took up with the government officers and arranged compensation. What else now?" replied Venkat, the village head.

"However, Sir, the money remained in his bank account. The Bank did not allow his family members to take it." 

"The Manager of that Bank is a good person. He helps as much as possible. However, they will have certain procedures to give the money." 

"Yes, they asked for the death certificate, details of family members, affidavits, surety signatures, and so on. As his family doesn't know anything about these procedures, they requested you to tell the Manager." pleaded Krishna.

"That means he didn't make a nomination on the account." sighed Venkat.

"What do you mean by nomination?" 

"Don't you know about the nomination?" exclaimed Venkat. 

"No Sir." 

"Anyone who has deposited money in a bank, invested in a mutual fund, or bought shares, can give a nomination. That is, if something unexpected happens to that person while the deposits, bonds, shares, etc., are running, a person appointed as a nominee can collect the money and pass it on to the rightful person. Once this request is given in writing, the Bank or the concerned institution will enter those details in their records. The nominee can be anyone like spouse, father, mother, son, or daughter of the account holder. So, whenever there is an untoward incident, like the death of Sitaram, the death certificate is only to be given to the Bank. After verifying the nominee's identity, the money in that account will be given to the nominee by the Bank. There is no need for any surety or other papers." explained Venkat in detail.

"Sir, does it mean that person will be the heir to the money?" wondered Krishna.

"No. For the heirs of the deceased, this nominee is only the representative. He or she is responsible for handing over the money to the heirs." 

"Sounds like a good arrangement. Do banks charge anything for this?" 

"No. It's completely free." 

"Then, I will nominate my wife for all my accounts tomorrow." 

"Not only that, it is always better to keep the details of your possessions known to the family members," said Venkat.

"Alright... I will also inform all my friends about this nomination process. I will tell them to give nomination in their accounts as well." 

"Good decision. If there are any doubts, the bankers will guide you." remarked Venkat.

"OK Sir. And what about Sitaram's issue?" 

"He is one of us. A problem for his family is as good as our problem. I will talk to the Bank Manager. If they want any surety, I will provide it. OK!" assured Venkat.

"I am so happy Sir! You are always helpful to our villagers." Krishna left the place thanking Venkat profusely.