NBFIs must repay deceased depositors’ money to nominees straightaway

Dhaka,  Thu,  21 September 2017
Published : 13 Jun 2017, 00:46:19
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NBFIs must repay deceased depositors’ money to nominees straightaway

BB directive says depositors can change nominees
FE Report


Non-banking financial institutions (NBFIs) have to repay deposited money to the nominees or designated guardians of minor ones after depositors' death.

The central bank issued Monday a notification to this effect, asking the managing directors and chief executive officers of all such financial institutions to follow the instructions for making payment to the nominee/nominees after the demise of depositor/depositors properly.

However, the depositors are empowered to nominate other person/persons as nominee/nominees anytime after cancelation of the previous nominee/nominees, according to the Bangladesh Bank (BB) notification.

It also said the depositors may also specify the persons who will receive the money after their death in the case of minor nominee/nominees.     

"We've issued the notification after receiving allegations that some NBFIs had sought document of the central bank, if any, from the nominees of the depositors," a BB senior official said while explaining the main objective of the latest direction.

He also said: "We've clarified our position regarding the matter through issuing the notification."

Currently, 33 NBFIs are running their business across the country.

Earlier on April 19 last, the BB instructed the commercial banks to follow the Banking Companies Act (BCA) 1991 (amended up to 2013) duly for repaying deposited money to the nominees after death of the depositors.

The central bank had issued the notification after receiving allegations that some banks were collecting undertakings from the nominees of the depositors.

The undertakings state that the nominees might not be considered eligible recipients of the deposit in case of the depositors' death, which is a violation of the instruction as mentioned in Section 103 of the Act.

Currently, the depositors are allowed to include the names of more than one nominee while opening their accounts with the commercial banks.

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