Meaning
A Nominee is a person chosen by the account holder to receive money or assets in case something happens to them.
Definition
The nominee acts as a caretaker of the funds until the legal heirs claim them.
Purpose
It ensures smooth transfer of bank deposits, insurance amounts, or investments.
How It Works
The customer provides nominee details while opening the account or can update them later.
Importance
- Avoids delays
- Protects family interests
- Ensures easy claim process
Author
