Nomination and Settlement Policy for lockers

Standard Chartered Bank : Nomination and Settlement policy for Lockers:

This policy document on lockers outlines the process followed for nomination on lockers and the process to be followed on deceased lockers. It is expected that this document will impart greater transparency on processes followed and create awareness among customers / legal heirs of their rights. The ultimate objective is that the customer / legal heirs will get services they are rightfully entitled to receive without demand.

While adopting this policy, the bank reiterates its commitments to individual customers outlined in Bankers’ Fair Practice Code of Indian Banks’ Association.

This document is a broad framework under which the rights of common locker hirers are recognized.

Part A: Nomination facility for lockers

Part B: Settlement of deceased locker accounts

Part C : Documentation required for closure of locker accounts.

Part D – Surrender of Locker

Part E: Inventory Form

Part A: Nomination facility for lockers:

Nomination facility is available to the hirers of safe deposit lockers. Nomination enables the Bank to release the contents of a locker to the nominee of the hirer, after making an inventory of the contents of the locker.

Nomination facility is governed by Sections 45-ZC to ZF incorporated in the Banking Regulation Act, 1949 and the Rules framed under the Banking Companies (Nomination) Rules, 1985. The relevant guidelines in respect of safe deposit lockers are given below:
The following forms should be used for making, cancellation or variation of nominations:

Form No.	Context
Form SL1	For making nomination by an individual who is a sole hirer of a locker
Form SL1A	For making nomination by an individuals who are joint holders
Form SL2	For cancellation of the nomination made.
Form SL3	For variation of the nomination made by an individual who is sole hirer of a locker
Form SL3A	For variation of the nomination made by individuals who are joint hirers of a locker

Nomination can be made only in respect of lockers which are held in the individual capacity of the hirers and not in representative capacity as the holder of any office or otherwise.
Nomination or its cancellation or variation can be made by the sole depositor in case of a single account and by all the depositors jointly in case of a joint account.
Nomination, cancellation of nomination or variation of nomination can be made at any time during which the locker is under hire.
In case of sole hirer of a locker, nomination can be made in favour of only one person.
If a locker is hired by two or more persons to be operated under the joint signatures of two or more, such hirers may nominate one or more persons to whom in the event of death of any such hirer or hirers.
If nomination is made in favour of a minor, the hirer while making the nomination should appoint another individual, not being a minor, to receive the contents on behalf of the minor nominee in the event of death of the hirer during the minority of the nominee.
If the nominee dies, locker hirer can change the nomination
Branch will acknowledge in writing to the concerned hirer, the filing of relevant duly completed form of nomination, its cancellation or variation, as the case may be.

Part B: Settlement of deceased locker accounts:

The contents of the locker shall be handed over to the claimant joint holder/ nominee as applicable below:
Sole hirer with or without nomination
- Safe deposit locker with nomination:
  - The nominee will be allowed to access the locker and remove the contents on verification of relevant identification documents and verification of proof of death of locker hirer.
  - Before permitting the nominee to remove contents of the Safe Deposit Locker, the bank would prepare an inventory of the articles in the presence of nominee(s) and two independent witnesses.
- Safe deposit locker without nomination
  - Legal heir(s) of the deceased locker hirer will be allowed to access the locker and remove the contents on producing duly certified copy of legal representation I.e Probate of a Will or Letter of Administration or Succession certificate along with the copy of death certificate
- Locker holding with or without nomination and Without survivorship mandate (operated jointly)
  - With nomination:
    - In the event of the death of one (or more but not all) of the joint locker hirers the nominee(s) will be jointly allowed to access the locker and remove the contents on identification and verification of proof of death of the locker hirer(s) along with the surviving hirer(s).
    - In the event of death of both / all joint locker hirers the nominee(s) will be allowed to access the locker and remove the contents on establishing his/her/their identity and verification of proof of the death of the hirers.

- - Without nomination
    - a) In the event of death of one (or more but not all) of the locker hirers, the surviving hirer(s) and legal heirs of the deceased hirer (or a person mandated by them) would be allowed to access the locker and remove the contents on verification of authority of legal heirs and proof of death of the hirer.
    - b) In the event of death of both / all the joint locker hirers,
      the Legal heir(s) of the deceased locker hirer will be allowed to access the locker and remove the contents on producing duly certified copy of legal representation I.e Probate of a Will or Letter of Administration or Succession certificate along with the copy of death certificates.

Joint account with mandate “Either or Survivor”/“Former or survivor”/ “Anyone or Survivors”/ “Latter or Survivor” – with or without nomination
- With nomination:
  - At present B R Act (Section 45 ZE) does not provide nomination facility in respect of lockers with “Either or Survivor” / “Former or Survivor”/“Anyone or Survivors”/ “Latter or Survivor” mandate.
- Without nomination:
  - In the event of death of one (or more but not all) of the joint hirers, the surviving hirer(s) will be allowed to access the locker and remove the contents on verification of proof of death of the joint hirer(s).
  - In the event of death of all the locker hirers, the legal heirs
    of the deceased locker hirer will be allowed to access the locker and remove the contents on producing duly certified copy of legal representation I.e Probate of a Will or Letter of Administration or Succession certificate along with the copy of death certificate.

For Nominee is Minor:

For any of the above cases, if the nominee is a minor:
- In addition to following the processes described above (as applicable for the case under reference), where any beneficiary / heir is a minor, an indemnity should be obtained on behalf of such minor executed by his / her guardian. If the guardian is not a natural guardian of the beneficiary / heir but is appointed by the court, then the relevant order must be studied to ensure the powers of such a guardian, and whether he / she is authorized to sign the indemnity on behalf of such a minor. On satisfactory confirmation of the same, the signature of the guardian should be obtained on behalf of the minor.
- Contents of the locker would be handed over to the guardian as mentioned above, who as per law is competent to receive the articles on behalf of such minor.

In all of the above cases, the access shall be given only after satisfying the following conditions:
- The identity of the survivor(s) / nominee(s) and the fact of death of the locker hirer has been established by the bank, obtaining appropriate documentary evidence
- Before permitting the surviving hirers/legal heir(s) to remove contents of a Safe Deposit Locker, the bank would prepare an inventory of the articles in the presence of surviving hirers/legal heirs and two independent witnesses.
- No known order or direction from Courts/Forums restraining the Bank from giving access to the locker of the deceased is present
- Access to the articles in the locker, thus provided to the Survivor(s) / nominee(s), is only as a trustee of the legal heirs of the deceased locker hirer and such access given to them shall not affect the right or claim which any person may have against the survivor(s) / nominee(s) to whom the access is given.

Part C : Documentation required

1. Safe Deposit Lockers With Nomination:

Operational instruction – Self

Nominee registered – Yes (Eg Nominee Name – X)

Situation – A Dies

What is to be done: The nominee will be allowed to access the locker and remove the contents on identification (such as Election ID Card, PAN Card, Passport etc.) and copy of death certificate (duly certified from original / or original copy).

Explanation – X will receive the contents of the locker.

Claim form – A

A. Safe deposit locker Without Nomination:

Operational instruction – Self

Nominee registered – No

Situation – A Dies

What is to be done: Legal heir(s) of the deceased locker hirer will be allowed to access the locker and remove the contents on producing duly certified copy of legal representation I.e Probate of a Will or Letter of Administration or Succession certificate along with the copy of death certificate (duly certified from original / or original copy).

Claim form – D

B. Joint Safe Deposit Lockers

a. Joint safe deposit lockers With Nomination:

(First holder is deceased)

Operational instruction – Jointly

Nominee registered – Yes (Eg Nominee Name – X)

Situation – A Dies

What is to be done:In the event of the death of one (or more but not all) of the joint locker hirers the nominee(s) will be jointly allowed to access the locker and remove the contents on identification and verification of proof of death of the locker hirer(s) along with the surviving hirer(s).

Explanation – B along with X will access the locker and remove the contents.

Claim form B

b. Joint safe deposit lockers With Nomination:

(Second holder is deceased)

Operational instruction – Jointly

Nominee registered – Yes (Eg Nominee Name – X)

Situation – B Dies

What is to be done: In the event of the death of one (or more but not all) of the joint locker hirers the nominee(s) will be jointly allowed to access the locker and remove the contents on identification and verification of proof of death of the locker hirer(s) along with the surviving hirer(s).

Explanation – A along with X will access the locker and remove the contents.

Claim form – B

c. Joint safe deposit lockers With Nomination:

(All the holders are deceased)

Operational instruction – Jointly

Nominee registered – Yes (Eg Nominee Name – X)

Situation – A and B Dies

What is to be done : In the event of death of both / all joint locker hirers the nominee(s) will be allowed to access the locker and remove the contents on establishing his/her/their identity and verification of proof of the death of the hirers.

Claim form – A

C. Joint Safe Deposit Account without nomination

(“operated Jointly”)

(E.g. Joint account holder – “A” and “B”)

a. Joint Term deposit without nomination

(First holder is deceased)

Operational instruction – Jointly

Nominee registered – No

Situation – A Dies

What is to be done: In the event of death of one (or more but not all) of the locker hirers, the surviving hirer(s) and legal heirs of the deceased hirer (or a person mandated by them) would be allowed to access the locker and remove the contents on verification of authority of legal heirs and proof of death of the hirer.

Explanation – B and legal heirs of A (or any of them mandated by all legal heirs) will be given access to locker and liberty to remove the contents jointly.

Claim form – B

b. Joint Term deposit without nomination

(Second holder is deceased)

Operational instruction – Jointly

Nominee registered – No

Situation – B Dies

Explanation – A and legal heirs of B (or any one of them mandate by all legal heirs) will be given access to locker and liberty to remove the contents jointly

Claim form – B

c. Joint Term Deposit Account without nomination

(All the holders are deceased)

Operational instruction – Jointly

Nominee registered – No

Situation – A and B Dies

What is to be done:

Explanation

The claimant shall produce a duly certified copy of legal representation I.e Probate of a Will or Letter of Administration or Succession certificate or Registered Will.

All such orders received shall be forwarded to Retail legal for confirmation.

Claim form – D

D. Joint Safe deposit Locker account with nomination

(Operation Mandate – “Either or Survivor”/“Former or survivor”/ “Anyone or Survivors”/ “Latter or Survivor”)

With Nomination: At present B R Act (Section 45 ZE) does not provide nomination facility in respect of lockers with “Either or Survivor” / “Former or Survivor”/“Anyone or Survivors”/ “Latter or Survivor” mandate. Hence operational instructions are not given in this regard

E. Joint Safe Deposit Locker Account without nomination

(Operation Mandate – “Either or Survivor”/“Former or survivor”/ “Anyone or Survivors”/ “Latter or Survivor”)

(E.g. Joint account holder – “A” and “B”)

a. Joint Safe Deposit Lockers account without nomination

(First holder is deceased)

Operational instruction – E/S , F/S , A/S , L/S

Nominee registered – No

Situation – A Dies

What is to be done:

In the event of death of one (or more but not all) of the joint hirers, the surviving hirer(s) will be allowed to access the locker and remove the contents on verification of proof of death of the joint hirer(s).

Explanation – B will be given access to the locker and liberty to remove the contents.

Claim form – B

b. Joint Safe Deposit Lockers account without nomination

(Second holder is deceased)

Operational instruction – E/S , F/S , A/S , L/S

Nominee registered – No

Situation – B Dies

What is to be done:

Explanation – B will be given access to the locker and liberty to remove the contents.

Claim form – B

c. Joint Safe Deposit Lockers without nomination (All the holders are deceased)

Operational instruction – E/S , F/S , A/S , L/S

Nominee registered – No

Situation – A and B Dies

What is to be done:

In the event of death of all the holder , the legal heirs shall produce a duly certified copy of legal representation I.e Probate of a Will or Letter of Administration or Succession certificate or Registered Will.

All such orders received shall be forwarded to Retail legal for confirmation.

Claim form – D

Part D : Surrender of Locker

A written request signed by all hirers for termination of safe deposit locker should be obtained.
A declaration will be obtained from all the locker after removal of all the contents from the locker.

PART E – Inventory Form

Inventory is taken in terms of a court order-

Where an inventory is to be taken in terms of a court order, it should be done in the presence of

the Court’s representative ( Copy of ID documents )
the claimant/s to the contents of the locker or Hirer
the valuer either appointed by court or bank
Locker custodian along with 2 branch staff.

The inventory should enumerate the contents of locker and it should be signed by those in whose presence the locker has been opened. The valuer’s assessment of the value of each item of the inventory should be in triplicate, one copy to the Court, the second to the claimant and the third to be retained on branch record.