Financial institutions asked to pay nominees after depositors death

Bangladesh Bank has directed all financial institutions to pay out the deposit to its nominee or nominees following the death of a single or joint account holder. The directive came in a circular Bangladesh Bank issued on Monday to the heads of financial institutions (FIs) across the country. According to the current rule, the deposit amount could be payable to a single or multiple nominee(s) mentioned in the account after the demise of depositor or depositors. The circular also read the depositors would be able to choose new nominees in place of old ones at any time. As per section-1 of the circular, the single or joint account holder can predetermine who, in case of underage nominees, to be entitled for the deposited money. Earlier in a BB circular issued on April 20, all scheduled banks came under the same instruction. According to sources at the central bank, the circulars were issued following a court verdict that established the right of legal heirs to the savings.