Nomination is a feature that allows a deposit account holder to name someone to claim the account, investment, or contents after the death of the account holder.
This means the nominee will be eligible to receive all the funds from your account. In the absence of nomination, the procedure of settling a death claim may necessitate a slew of documents, including death certificates, succession certificates, a will, or a court order. Although it appears straightforward on paper, it is a long and drawn-out process in real life, and it is not a situation in which you would want to place your loved ones, who are in an extremely difficult circumstance.
Here is a look at the details regarding nominations for one’s RBI RDG account according to FAQs released by the RBI.
Can a Government securities holder nominate an individual other than blood relation as a nominee?
Anyone can be nominated as a nominee by a holder of government securities, as long as the nominee is eligible to invest in the loan as indicated in the Government Loan Notification.
How many nominees can be entered?
The account can have up to two nominees.
Can nominees be changed later?
Yes, investors can change the nominee details later via the Retail Direct portal.
What happens if one of the joint nominees to a Government security dies?
When a nomination for a Government security has been made in the names of two people and one or both of them dies, the surviving nominee is entitled to the Government security and payment on it.
What is Retail Direct Gilt account?
The Reserve Bank of India-Retail Direct (RBI-RD) Scheme, an important milestone in the growth of the Government securities (G-sec) market, would make G-secs more accessible to the ordinary man by simplifying the investment procedure.
The RBI will not charge a fee to open or maintain a Retail Direct Gilt (RDG) account. It will also not charge any fees for submitting bids in primary auctions. However, the investor will be responsible for any payment gateway fees incurred while funding his or her purchases.
These are the government securities one can invest in through the Retail Direct platform:
i. Government of India Treasury Bills (T-Bills)
ii. Government of India dated securities (dated G-Sec)
iii. State Development Loans (SDLs)
iv. Sovereign Gold Bonds (SGB)