Citizens' Issues
Nomination are absolutely must

Nomination is one of the most important aspects of succession and estate planning. Yet few investors and people know about it, and its implications. Here’s a guide to nomination for investors wishing to plan better


Nomination ensures comfort for the family to a free, easy and unfettered access to your money by your family in the occurrence of an unfortunate event. It is not only your right but also your responsibility to ensure that you do not leave behind headaches and have the money ‘frozen’ at a time when it is most needed.

Nomination is a simple exercise: at the end of every document contains a form which you are required to fill in indicating the name, relationship and address of the person who will be entitled to get your money, then sign it along with a witness. You should retain a copy. Those not opting for the facility too are required to put it in writing.

Please remember, express mandated nomination provisions are always available, be it for a savings bank or fixed deposit accounts, insurance policies, life and health, investments in shares or mutual funds, deposits for utilities like telephones or gas or other company deposits.

While nomination formalities are invariably carried out at the opening of the account/investment/payment stage, nonetheless it can be done at a later time also. It can even be modified or cancelled. However, it can be done only by the individual signing the documents and not by others. It is not applicable to trusts, societies, firms, HUF or its kartas or power of attorney holders.

It is possible to make out nominations in multiple names by specifying the percentages. Minors, trusts, government, local authorities and non-residents too can be nominees.

In the case of bank deposits and investments you can always make out nominations in different names. In the case of savings account, it can be one and for different deposits to different nominees, where different beneficiaries are contemplated for different deposits. No one can insist on registering only one nominee.

Effecting transmission on demise

1. Submit a letter in duplicate with the original and xerox of the death certificate along with the originals of the accounts to be transmitted. In death cases it is ‘transmission’ and not ‘transfer’.

2. Ensure proper identification of the nominee/beneficiary with KYC verifications.

3. In case the amount to be transferred exceeds Rs1 lakh, an Indemnity Bond may be sought.

4. In the absence of any nomination the claimant may be called upon to submit a Will, heirship certificate, and no-objection certification (NOC) from other heirs, letter of administration or succession certificate and indemnity bond.


(Nagesh Kini is a Mumbai-based chartered accountant turned activist.)



arun adalja

4 years ago

in many cases nominee s signature is not taken whil giving nomination first time this may create problem at transmissin stage so it must be made mandatory to take nominee s signature at initially.

Suiketu Shah

4 years ago

very important article,thanks


4 years ago

Nominee versus legal heir


Francis Xavier R

In Reply to MOHAN 4 years ago

tks for the link, mr.mohan

Great expectations but poor result of Indian prime minister’s visit to Russia and China

Indian PM fared worse in China in comparison with visiting leaders from Russia and Mongolia. Especially nothing concrete was done during the visit to reduce the gap between India’s import and export to China

For the last few months, there have been great expectations that a number of important decisions would be made during the visits to Russia and China by the Indian prime minister (PM) Manmohan Singh.


First, there was the great hope attached to the expansion of the Kudankulam nuclear project. It was expected that, in this trip, both Russia and India would ink the proposal to set up units No3 and No4 reactors, but this got bogged down to elusive details on the nuclear liability issue, resulting in no progress. Until lawyers from both sides settle the outstanding issues on this subject, no progress is likely!


However, one major and satisfying work took place on 22 October 2013 (morning), when Kudankulam’s first 1,000 MWe (megawatt electric) plant generated 160 MWe, before being halted for routine check for behaviour of "integrated system" of the turbine and the generator. It was connected to the southern power grid. In about two weeks from now, the commercial operation of the plant is expected to commence.


Because of the bottleneck created by the nuclear liability issue, the roadmap drawn in 2010 to build 14 to 16 reactors got pushed to the back burner!


Bilateral trade with Russia presently hovers around $11 Billion (2012-13) and if the current pace continues, growing at about 25% per year, this is likely to reach $20 billion by 2015. Comparatively, this is much lower than what has been achieved with China.


One other touching move was made by Russian president Vladmir Putin, when he presented PM Manmohan Singh, a Mughal era gold coin, to reaffirm that the trade between the two countries have been existing for centuries now. With that the Indian delegation moved over to China.


Receiving a warm welcome, PM Manmohan Singh stated that "when India and China shake hands, the world notices". And, to the Chinese leadership, this was also a welcome sign, but, as they extended their courtesies to the Indian delegation, they were also hosting the leaders from both Russia and Mangolia!


Russian premier Dmitry Medevedev signed a 30-million tonne crude oil supply agreement, doubling the current rate, for delivery to China, for the next 5 years! Details of the Mangolian premier's visit have not been announced in detail.


Although a lot was expected from this visit, the first major issue tackled was to resolve the long running border disputes, to cover the entire length of 4,057 km line of actual control between India and China. Both the countries signed the Border Defence Cooperation Agreement (BDCA) which is expected to take care of the face-to-face situation by troops facing each other and to show maximum restraint. "Neither side shall use force or threaten to use force." The BDCA takes care of the earlier pacts signed in 1993, 1995 and 2005.


BDCA does not prevent either side from "improving border infrastructures in any way as the situation was highly asymmetrical" with the odds favouring China. However, it is expected that the BDCA will prevent intrusion on either side. This is one more major step to diffuse a tense situation.


However, the irritant issue of stapled visa being attached to Indian citizen's passports from Arunachal Pradesh visiting China was practically brushed aside by the officials, who are reported to have said that this was a simple matter. But that does not cover the core issue at all, meaning thereby, that this area was "disputed".


Bilateral trade between India and China has reached $67 billion with Indian imports touching $47 billion, leaving a deficit of $19-20 billion due to non-supply of raw materials like iron ore etc. In order to overcome this deficit, India has been pressing China to open up the market for IT services and pharmaceutical industry but the progress has been slow. At the current rate, trade is expected to touch $100 billion by 2015. PM Manmohan Singh could not get any rupee payment agreement. The trade imbalance this year may touch $30 billion, if China does not source other items from India.


One issue that India and China found to be common interest is in the formation of Bangladesh-China-India-Myanmar Economic Corridor. The first joint study group is likely to meet in December. It is too early to comment what this group can really achieve, but any sort of cooperation amongst neighbouring countries is welcome sign for development of the region which would bring benefits to the people concerned.


While no firm commitment was made on trans-border river agreement, Chinese premier is reported to have stated that China will take a very constructive view and will have an open mind in discussing issues. China is already building a 510 MW hydropower plant on Brahmaputra at Zangumu, with three others on the anvil.


Finally, Chinese power equipment companies like Shanghai Electric and Dongfang Electric have now agreed to set up permanent base to cater to servicing needs for the equipment supplied to India, which is around 60,000 MW and this is a welcome sign for buyers in India.


In the past, Chinese assurances and promises were not honoured completely. It is hoped that the spirit shown by Chinese premier Li Kiqiang will endeavour to keep his.


(AK Ramdas has worked with the Engineering Export Promotion Council of the ministry of commerce. He was also associated with various committees of the Council. His international career took him to places like Beirut, Kuwait and Dubai at a time when these were small trading outposts; and later to the US.)




4 years ago

No one is taking the "de jure" PM of India seriously!

kaushik shukla

4 years ago

This clearly indicates that world has started taking current PM with pinch of salt. expecting any major shift in their policy to deal with India is not in offing.
It is wait and watch situation, for them untill 2014 election results available.
Stratagic partner like Russia also sniffing the wind of change will also keep cards close to chest and not in hurry to commit .


4 years ago

India's Prime Minister is a Khangress Walla who has arisen like Aphrodite from decades of being churned in the bureaucratic cess pool. He has risen because India rewards highly academically qualified day dreamers who do nothing but take credit for fortuity and find scape goats for failures in the foot steps of Janab Jawaharlal G Nehru Saheb and his cronies.’s users speak out: ‘Clean this mess up’

Health and Human Services asked for comments about its website. It got them by the hundreds. Consumers and insurance agents say they were stymied, and one applicant said he and his wife were wrongly listed as incarcerated - then denied

Over the weekend, the U.S. Department of Health and Human Services began unveiling its effort to fix, the home for the federal insurance marketplace. Part of that was a blog post soliciting comments from folks who have tried the site.

"Most importantly, we want to hear from you, and make sure that your experience with is a positive one. If you have any comments, either complimentary or critical, please let us know by sharing your feedback at We've already heard so many stories of individuals getting health insurance for the first time, and we are dedicated to making that possible for all Americans."

The Obama administration has not always been transparent about A case in point is how HHS has withheld the number of people who have been able to successfully enroll. But in this instance, the administration allowed comments to the blog post to be seen by all (after moderating them and removing identifying information). Commenters’ identities were not verified and they are identified by whatever name they entered.

As of yesterday afternoon, we counted more than 500 comments. My colleague Mike Tigas pulled them from the site, and I’ve been analyzing the feedback.

“Repeal Obamacare,” several commenters wrote, making political statements based on the website’s problems.

Some urged patience: “Turn off the TV and stop listening to the naysayers,” Darlene wrote. “Its [sic] better to wait patiently and get great health care than to get emotional and frustrated and wind up with NO healthcare...”

Others, like Kim, offered to help: “I have a home office and am VERY tech savvy. I would like to be able to help in whatever way I can.”

By and large, however, the feedback has been negative. While some comments root for the site’s failure, many are from people who’ve tried to use the site without success. Some pose specific questions; others voice general frustrations. Because their identities and contact information isn’t listed (for understandable reasons), there was no way to verify their stories.

The problems touch people from all over the country. The posts below have been trimmed for length, but the original grammar and spelling are used (even if they contain errors).

Wrongly Listed As Jailed

“Website said my wife and I were ineligible due to current incarceration. We have never been arrested in our lives, both 63!!!!!!!!!!!!!!!!!!!!!!!,” Fred wrote on Oct. 21.

Health Problems Made Worse

“I have a pre-existing condition .... a-fib.....and actually had an attack after getting frustrated with this confusing mess,” Bill wrote on Oct. 22. (A-fib refers to atrial fibrillation, an abnormal heartbeat.)

Daughter is Not a Daughter Anymore

“I am having difficulty with my account,” Joanna wrote on Oct. 22. “It appears that my daughter was added twice so that I now have two daughters with the same name and social security number. I am unable to delete one of them. Also, the drop down menu that relates to what relationship someone is to another is faulty. I choose that my husband is the father of our daughter and that my daughter is a dependant [sic] to me and my husband. What it actually shows though is that my daughter is a stepdaughter to her father and that my daughter is now both my husband and I's parent. “

Compromised Identity

“I can sign in ... but cannot see the plans available to me — they claim my identity has been compromised. So frustrating!” Rhonda wrote on Oct. 22.

Going in Circles

“I have been trying to get into the system since the beginning,” Marion wrote on Oct. 22. “I have created 3 different accounts and am not able to log into any of them. When I request the user ID or to reset the password it throws me back to the log in page where I can't login because it says I don't have an account. When I try to reset the password with the email I used it, I never get an email to validate my account. I won't let me create another account telling me I already have an account. I feel like I keep going around in circles. Will I ever be able to set up an account? “

Groundhog Day

“I've now filled out that same application multiple times and even though there are hitches and glitches, I do manage to get to the point where I should be able to shop,” wrote one person whose name is listed as “likebillmurrayingroundhogday, on Oct. 21. “However, once at that point, there is no place for me to shop! The system just kicks me back to starting the application again. It's like "Groundhog Day."


“After many attempts I did manage to set up an account with a log in and password,” Francine wrote on Oct. 23. “NOW when I'm about to get to the meat and potatoes and go shopping a red box pops up and says "you can only do one application per state". WTF? Several times I was able to find a page that asked me if I was a Florida resident with a yes and no button and it appears that after the site drops off my computer it moves this from yes to no. I can no longer find this page, so this site has BLOCKED me.”

Circular Security Questions

“I get an error message after I answer the security questions that say the answers can't be the same, but they aren't the same. If people are getting past this error message, I would like to know how,” Samara wrote on Oct. 20.

Name Not Unique

“I've been trying to create an account since program inception (October 1). I continually get a variety of crazy messages, the most recent being that I could not create an account because my first name, last name and email address are not unique!” Tom wrote on Oct. 20. “What the devil does that mean? Most people use their names in their email address, so it's never going to be "unique." I need health insurance for my 61-year-old wife and the Marketplace appears promising. Clean this mess up!”

Insurance Agents Stymied

“I am insurance agent also President of Insurance Agency (50+ Insurance Agents plus 30 employees),” John wrote on Oct. 21. “We have 1000's of customers who want to sign up for health insurance and most will be subsidized. We have tried everyday since 10-1-2013. Maybe 2 applications have been processed. I have spent well over 250K getting ready for the ACA roll-out. My agency has been writing individual and small group insurance for over 25 years. We have marketed the uninsured and lower income. We have held events to get pre-enrollment applications. We just want to help people get the insurance they need. What can you do to help me?”

Application Counselor Frustrated

“I am employed as a Certified Application Counselor in Scranton, Pennsylvania and I have not been able to successfully assist the approximately 50 people that visited me looking for assistance,” Suzanne wrote on Oct. 21. “I created an account for myself prior to October 1st to walk myself through the system and have not been able to successfully log in since October 1st. Needless to say, I am as frustrated as the consumers who visited me are. I hope the log in situation is fixed soon.”

ProPublica fellow Mike Tigas contributed to this report.




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