• If there has been no customer initiated transaction in the account for two years the
account will be designated a dormant account. In some banks an account is designated
dormant if there are no customer generated transactions for six months.
• These accounts are subject to greater checks as they are susceptible to fraud.
• Banks often insist on a minimum average quarterly balance to be maintained in the
account. If the balance is not maintained a service charge is levied.
• Clients must be advised of any changes in charges.
• The Banking Laws (Amendment) Act 1983 inserted section 45ZA to permit the facility
• A single depositor can, in the event of his death, nominate the person who should be
paid the balance lying to his credit in his account.
• With regard to a joint account all the depositors together may nominate a person to
whom in the event of their death the amount to their credit in the joint account may be
• Nomination may be made in favor of individuals only and not associations, societies,
trusts or any organization or their office bearers.
• Nomination confers upon the nominee the right to receive the deposit from the bank.
• If the nominee is a minor the depositor/s may appoint a person to receive the amount
during the minority of the nominee.
• Nominations may be varied or cancelled at any time.
• On making payment to the nominee the bank is fully discharged from its liability
regarding the deposit.
• Where a depositor has utilized nomination facility and made a valid nomination or
where the account was opened with the survivorship clause (either or survivor, or anyone
or survivor or former or survivor or latter or survivor, payment of the balance in the
deposit account to the survivor(s)/ nominee of a deceased deposit account holder
represents a valid discharge if:
• The bank has exercised due care and caution in establishing identity of survivor/
nominee and death of account holder (through documentary evidence);